How to Save Money on Life Insurance Rates

Life insurance is your gift to your family in the event that something tragic happens and you are no longer able to support them financially. It takes care of the monetary needs of your family members and your home. Life insurance also takes care of other fees that your family must pay such as school fees, mortgage fees, and other various expenditures. One of the problems of life insurance is that it can get really expensive in maintaining its monthly or yearly payment. Maintaining life insurance can be compared to your regular physical check-ups in the sense that you must always check for any change in rates. A common error that is done by many people is that they fail to check up on the changes in their life insurance plans. Sometimes rates will plummet and the amount of money that they pay for their insurance plan becomes too much considering that the rates have gone down. Another error occurs when a person’s policy gets cancelled without the person even being aware of what happened. There are also new policies that are continuously added that may get you more insurance for lesser money invested. If you have reached a certain age wherein you have children or if you have assets that you want to protect at all costs, you will need to have a good life insurance plan, however, it would be ideal for you to save money while doing so.

How to save on life insurance rates

Every person likes to save money. This is a fact as you spend so much on different expenditures that you want and need. When you sum up all of the money that you spent in your lifetime, you can get blown away that you actually made that much money in your life. In spending for your insurance policy, this is a necessity that you need for this will protect your family as well as all of your assets in the event that something tragic happens to you. There are, however, many ways by which you can save money on life insurance rates. Let us explore the possibilities.

Tip 1- The first tip in saving money on your insurance policy is to treat it just like a car, wherein you need to have it checked regularly. Insurance policies may change from time to time. There are many people who fail to do this and as a result, they end up spending more than they really have to. Always checking your policy will also give you the ability to get additional coverage options that you can choose to take out for whatever reason and your coverage remains the same.

Tip 2- If you are living a lifestyle that is fast paced and full of risk, your insurance coverage will be more expensive than the average person. If you love taking sky driving trips or white water rafting, you are causing you insurance company to view you as a “high risk” person. This will give them no choice other than to increase the cost of your premiums.

Tip 3- Vices also increase the amount you pay for your insurance coverage. If you are a cigarette smoker, many companies are known to double the cost of their coverage. This is why it is imperative that you quit smoking immediately.

Tip 4- In getting cheaper life insurance rates, the best time to buy is when you are young and healthy. It is essential that you do not wait until you are older for your rates will increase significantly. During this time, you will also find that any additional coverage on your insurance will also be more expensive.

Tip 5- It is the job of insurance agents to pass judgment on their clients in terms of how risky they are to be covered by their insurance company. To understand this better, if you are obese or overweight, your insurance provider will see you as a high risk because you are more inclined to developing heart problems. Another example is when you have a previous illness that still affects you until now; your insurance cost will go up.

Tip 6- Saving money on insurance policies means that you must take the time in evaluating the most affordable insurance policy that you can afford. Do not simply get the insurance policy that is right in front of you. You should carefully research online and ask your friends and family about which insurance provider is the most affordable. You should also get the insurance provider with the most coverage. There are a lot of them available. You simply have to take the time and research.

Tip 7- If you have an existing life insurance policy, a great way to save money is to switch the mode by which you pay your coverage. This means that if you are paying monthly, you may be paying an extra 8 to 10% per year in premiums. If you can switch your payment mode to a yearly basis, this may allow you to save more money. To do this you must simply ask your provider which will save you more money.

Tip 8- It is absolutely no question that you should get life insurance. In doing this, you must be realistic in how much you are capable of spending. If you find that you have a budget that you must strictly follow, you should consider choosing term life insurance. This type of insurance is cheaper than whole life insurance. The only time that you should get life insurance is when you are financially stable and capable of keeping the payments.

Saving money on your life insurance payments is tremendously beneficial for you. With the money that you save, you can use it to invest in stocks and other types of investments. You may also choose to put that money in your savings account for one day you may need it.

The Difference Between Term and Whole Life Insurance

Many people frequently ask about term life insurance and whole life insurance. They want to know which type of insurance is better or which is more affordable. What they fail to see is that life insurance varies with each person’s financial plan. If you are looking to get insurance for a specific number of years or for your whole life, this is your choice to do so. There are many life insurance policies that are given for ten or twenty years. These insurance policies are better known as term insurance policies. If you wish to secure your family and assets for life, you will need to get an insurance policy that covers you for life. This is otherwise known as whole life insurance. Do determine which is better is almost impossible to do as these policies depend on the person getting them. While it is possible to save money on life insurance policies by getting the cheapest one, term life and whole life insurance really depends on the person’s circumstance. It depends on what type of means a person wants to secure for his or her end. This is why in selecting the ideal insurance policy for yourself and your family, you must know the difference of term and whole life insurance.

Understanding how insurance works

If you are wondering if you need insurance, you should ask yourself one simple question: Will your family experience financial hardships if you die? If your answer is yes then there is no question that you need life insurance. Your life insurance can be for your spouse, children, parents, and even your business partners and employees. Just because you may have life insurance, this does not mean that you are properly covered. To know exactly how much insurance you will need to consider 3 different time frames. These are:

Short term expenses- These are the expenses that you will need to cover your funeral, medical, taxes, and estate settlement costs. Any debts such as your mortgage should also be included here.

Living expenses- These expenses are also known as reoccurring expenses that are unavoidable no matter what you do. These are your food, clothing, shelter, rent, utilities, insurance, and vehicle expenses if you own a car.

Long term expenses- this includes funding for your children’s education and your retirement costs.

Term life VS Whole life insurance

Term life insurance

This type of policy combines life insurance with a savings account. It is an insurance policy that you could choose to cover you for 10, 15, 20, and 30 years depending on how many years you believe you will need the coverage. This coverage is a less expensive coverage when compared to whole life insurance. Term life insurance is also a much simpler form of insurance as with the premiums that you pay annually, in the event that something tragic takes your life, your beneficiaries or family will be given a lump sum of money by which they can use to pay for the cost of living. If you are able to live through your coverage, which is the amount of time that you are ensured, you will have to get a new insurance policy, which will be for a different coverage. This is where you may need to pay more because you have gotten older, which most insurance companies charge more to cover.


Term life insurance provides temporary coverage for a period of time. Among the different benefits that come with this are:

•    Term life insurance is cheaper than life insurance. You may choose to pay monthly or annually depending on which is more suitable to your financial situation.
•    Term life insurance offers a more substantial death benefit in relation to the premium.
•    Term life insurance also gives the benefit of being able to start with a term life insurance policy and then eventually convert that term life policy into a whole life policy.
•    Term life offers good protection to coverage that is needed for very specific circumstances such as business owners who took out a business loan and needs to have the insurance coverage as he or she is still paying that loan.
•    Term life policy allows mortgage protection that protects you and your family as you are paying off your mortgage.

Whole life insurance

When you choose this type of insurance policy, it is the more expensive policy out of the two. Whole life insurance policy allows you to build savings as compared to term life insurance, which is based on paying for death benefits. This insurance allows people to put in their money in without having to worry about their money losing any value. This is due to the fact that there is a predictable rate of return on an annual basis. This is otherwise known as dividends which you basically have access to whenever you need it. You may need some money to buy a new car or pay for your child’s education. You may even buy a house with this.

Benefits of whole life insurance

•    Whole life insurance gives you the benefit of being able to build up the money that you save use it to pay for other things that you want to do.

•    When you have a successful business that generates a lot of income, you may use this income to build the money in your whole life insurance policies. When your policies have accumulated enough money, this is the same principles as building your money in a bank. You will have more money to spend.

•    Whole life insurance allows you to have the financial freedom to be an entrepreneur and build several businesses without having to worry where to look for capital. Since you have money in your whole life insurance policy/policies, you have the financial back-up that you need in case your business venture needs more capital.

Where and How to effectively get Free Insurance Quotes

Now that you are interested in life insurance, this probably means that you have a family of your own whom you wish to protect financially. You may also have a business wherein your partners and employees depend on you for financial support. Life insurance is the means to support all of your beneficiaries in the event that something tragic happens and you are no longer able to provide any financial support. Let us face the facts; accidents occur to millions of people every day. Some are able to survive the accidents and some do not. There are also those who do survive yet they suffer accidents so severe that they end up on a wheelchair for life, leaving them unable to work the same way they used to. Do you wish to know what happens to people in this situation? They have to find the proper means to support their family or business. If they do not have the means, they are in a serious financial predicament that no person ever wants to be in. This is why if you are already considering getting life insurance, the time do so is right now. Do not worry there are very affordable life insurance providers that will accommodate your budget.

Where to get free life insurance quotes

Since life insurance is such a lucrative business that is practically saturated in the market, you may get free life insurance quotes from an authorized insurance agency practically anywhere. You may also go online if you wish to avoid the hassles of travelling from place to place to get quotes and compare prices. Going online allows you to visit as many life insurance companies as you can. The more companies you visit, the better your chances of getting a cheaper life insurance plan. Not all companies offer the same prices, coverage, and benefits. This is why you have to be very patient and diligent at visiting as many life insurance companies as you can so that you can ask as many questions as you need so that you fully understand the advantages and benefits that each company has to give.

How to buy life insurance

Since getting life insurance quotes costs absolutely nothing, you will need to have a little bit of knowledge about how to select the ideal life insurance provider. Buying insurance from a large, reputable company is a better idea than buying from an individual who has a small life insurance company. This is because large companies are more likely to have been in the business for a long time. This means that they have many clients who depend on them for their insurance plans. When a company has a lot of clients, this indicates just how good and reputable they are. When you buy your insurance plan, whether term life or whole life, here are some tips that you should know so that you choose correctly.

Tip 1- The first lesson in choosing the right insurance plan will be to know exactly what the financial stability of that life insurance company is. If that company whom you plan to secure your life insurance plan from has an A rating, this is a good indication that you are in good hands.

Tip 2- Credentials are extremely important when you deal with life insurance agents. You should make sure that whomever you are dealing with is a fully licensed professional who knows everything that you will need to know about life insurance.

Tip 3- Buying a life insurance plan when you are young and healthy will go a very long way in making the life insurance plan more affordable.

Tip 4- Calculate how much your family will need when you are gone. You must also take careful consideration to include daily expenses as well as bigger financial investments such as college funds, tuition, mortgage, and car expenses. It is also important that you note your spouse’s earning potential.

Tips 5- A lot of people fail to realize that in order to buy life insurance plans at a cheaper rate, they must be healthy. You should anticipate any medical exam that your insurance provider will require you to do by going to your doctor and get a physical exam while you are fit and healthy. Show your results to your insurance agent as proof that you are not a high risk client. When they see that you are healthy, they will offer you more affordable rates.

Tip 6- If you are married with children, securing a term life insurance plan will be a great idea. This is because term life insurance is much cheaper than whole life insurance. It also protects your family by giving them the financial means to live if you are tragically killed from an accident. Picking this type of life insurance means that you will also need to get a renewal guarantee which will allow you to renew the policy without taking the another medical test. When people fail to get renewal guarantees, they normally have to pay more because of certain medical conditions that they have developed over time.

Tips 7- Always compare quotes by visiting as many life insurance companies as you can. All you really need to do is type in “life insurance rates comparison” on Google. This will give you a better perspective on which company is more affordable.

Tip 8 – Many people make the severe mistake of not keeping their insurance documents in a safe place. When an accident occurs and your loved ones need to produce your insurance documents, they will need to know where you stored them. This will help them secure the money from your life insurance company.

Life insurance is a necessity that you need to protect your family. With a little bit of diligence and patience, you can get the cheapest life insurance policy for yourself. Follow these steps and get the ideal policy that your budget will allow so that you can sleep better at night.