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10 Easy Ways to Save Money on your Life Insurance

Life Insurance 10 Ways To Save

by Chris Funnell

 

1. Use an agent who shops the market using the Compulife® database of life insurance products.

 

This life insurance quote software has been featured in such publications as CNNMoney, USA Today, Canadian Moneysaver, and Jane Bryant Quinn’s column in the Washington Post.
 

TermCanada uses this software to ensure you receive the most competitive term life quotes. Compulife also powers the online life insurance quotes utility available on our website: TermCanada.com.

 

2. Consider paying annually instead of monthly.

 

Insurers typically charge less than 12 times their monthly premiums for those that pay annually.

 

3. Buy term insurance.

 

Term insurance usually has the least expensive premiums, but at the cost of fewer features. If you need features such as long term or permanent coverage, term insurance may not be the best product. As these features are complex, you should get professional advice.
 

However, make sure you don’t overbuy features that you don’t need – low price term life insurance may be the solution for you.
 

4. Don’t buy term insurance.

 

For those with tax problems or long term insurance needs, a permanent life insurance product such as Term-to-100, Whole Life, or Universal Life may be the best choice over the long term. These products are complex and should be considered with an analysis of your overall financial situation.
 

As an expert in life insurance, TermCanada will provide you with a detailed analysis with recommendations at no cost and no obligation, at your request.
 

5. Think about combining policies for yourself and your spouse.

 

Many insurers will provide a discount if you insure both yourself and your spouse through the same company.

 

6. Add children’s insurance to your existing policy instead of as separate policies.

 

Many policies allow for the addition of a children’s policy to your life insurance policy. The cost for adding this to your life policy can be as low as $50 per year, and often covers all insurable children for the same price.
 

Some companies also allow the child to transfer this into their own individual policy once they reach a certain age such as 21.
 

7. Quit smoking!

 

Your premiums will double as a result of smoking. That’s because mathematically, you are a poorer risk for life insurance than a non-smoker.
 

If you are a smoker planning on quitting, there may be insurance policies available that will allow you to receive reduced premiums once you quit smoking. Details on these specialty products are available by contacting TermCanada.
 

8. Ask about future costs.

 

Many term insurance policies have premiums that can increase over time, some quite substantially. If you find yourself uninsurable in the future and unable to qualify for new coverage, you may be stuck with very high premiums. Products may provide both projected and guaranteed future premiums, and both should be considered when purchasing a term life policy.
 

Lower life insurance costs in the future

 

Buying a slightly higher priced product now to ensure lower future premiums may save you in the long run. TermCanada has software that can provide an analysis of these future life insurance costs for you.
 

9. Shop for your mortgage insurance.

 

True mortgage insurance typically provides a death benefit that decreases as your mortgage decreases. It would seem sensible that these mortgage insurance products would be at a lower cost than a product that provides a level death benefit. This is not the case!
 

Level life insurance benefit

 

TermCanada will shop the life insurance market for you and in most cases can suggest a product that is both less expensive and provides a death benefit that stays level instead of decreasing with your mortgage balance.
 

10. Use a licensed professional.

 
A popular myth is that purchasing insurance online or through a company that doesn’t appear to pay commissioned agents will be less expensive than using an independent professional. This is not the case!

 

Commissions are paid from the insurance company (not directly by you), and are only one part of very complex pricing models used in determining your insurance cost. Insurers that pay commissions can and do price their products below other non-commission products by doing such things as lowering their overhead costs, not having a salaried captive sales force, and having lower claims through better underwriting.
 

The effect of this is that using the services of a professional life insurance broker can in fact be less expensive than the alternatives.
 

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