Most of the time, there are different ways to adjust and improve your life insurance rates.
Whether you are searching for your first quote or looking to improve your life insurance rate, there are various ways to go about it. It’s imperative to have life insurance to support your loved ones in the case of an accident, and it doesn’t have to cost a fortune either. Learn how to improve your life insurance rates to make sure you are not only saving money but making sure you have an adequate amount of coverage.
4 Tactics to Lower Life Insurance Rates
1. Take on a Healthier Lifestyle
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When you already have a life insurance policy, it’s up to you to request that the company reconsiders your rate. You’ll likely be asked about your health and lifestyle changes so that the insurance company can decide if revisiting the rate is worth their time and effort. Some policies require a medical exam, which can be a complicated process to go through when there aren’t drastic changes to be made. If you decide that you are not only ready to reduce your life insurance rates but also to get healthier, it can work out in your favor. You can save money and gain a healthier lifestyle at the same time.
Ensure you are staying healthy and making changes to lower your premiums by reducing your salt intake and avoiding high-cholesterol foods. Exercise more regularly, eat a balanced diet, and perform activities that lower your blood pressure. In most cases, the doctors will weigh you, take your blood pressure and pulse to determine if you have made enough change in your lifestyle. Depending on how significant the difference is in your health, you could be saving up to 57% on your plan.
2. Understand How Much Coverage You Need
Taking out a life insurance policy means you are planning for the unknown. You may want to take out an enormous plan to pay off houses, bills, college tuition, and more. On the other hand, you may underestimate the coverage you need. Either way, it could cost you. The amount of coverage that you need could also change over time, which means you should be re-evaluating your rates and plans every so often, especially when there are major changes such as having a baby or getting married.
Sit down and determine how much money it will cost to help support your spouse or partner. A good rule of thumb is to take out a life insurance policy with a death benefit ten times your annual salary. This rule of thumb is fundamental when you have dependents who rely on you for income. A financial planner could also help you determine the most suitable amount for your situation.
3. Choose the Correct Type of Insurance
There is no one-size-fits-all when it comes to insurance policies. It’s crucial to understand and choose the type of insurance that is comprehensive for you and your family — the two most common types are whole life insurance and term life insurance. Whole life insurance is the more complex policy because there are additional benefits involved. This policy usually costs more and is a form of permanent life insurance, meaning you will have the policy until you die. It can provide a cash value that you can tap into later in life if needed. The premiums remain the same as long as you live, the cash value grows at a guaranteed rate, and some can even earn annual dividends that aren’t guaranteed.
A term life insurance policy is usually more suitable for a younger family looking to spend as little as possible. The term life insurance rates are traditionally lower than whole life insurance and only last a specific amount of years, unlike whole life insurance. If you die within the term of the policy, your beneficiaries will receive the payout. Other than that, the payout has no additional value. A term life insurance policy is mainly created to protect your dependents if you die unexpectedly.
4. Cut Smoking Out of Your Life
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Smoking may be an addiction that you struggle to cut, but it could cost you when it comes to life insurance. Annual medical costs for tobacco-related diseases run almost $170 billion, and nearly 40 million adults in the United States smoke. No matter what way you consume tobacco, it could affect your life insurance rates. There are some occasions where smokeless tobacco users and cigar smokers are considered ‘non-tobacco users’ when applying for a life insurance plan. When considered a ‘non-tobacco user,’ it can significantly cut the plan’s costs compared to tobacco users.
If you applied to your life insurance plan while you were a smoker, but you no longer are, you can request that the company re-evaluate your plan. Just after one year of not smoking, there is a possibility of a less expensive premium and, at the same time, can reduce your risk for disease. Most insurance companies will ask for a urine or blood sample to confirm your habits when applying or replying.
It can be nerve-wracking to start researching for a life insurance policy, but it can be detrimental to your family if you do not have one. The fabric allows you to receive term life insurance rates in less than 10 minutes on your smartphone or computer. They want to make sure young families keep their spouses and children safe in case of an accident and assist you in organizing your finances. Get started now so you can assure your loved ones they are in good hands.