9 Tips for Getting the Best Price for Your Life Insurance

1- For a better price for your life insurance: Do not smoke or stop smoking

The state of health of the insured is one of the factors that most influence the amount of premiums. In addition to being good for your health, being a non-smoker allows you to get life insurance at a better price.

If you smoke already, be aware that some insurers offer a discount to customers who have quit smoking for 12 months or more. However, note that hiding the fact that you smoke to the insurer is a very bad idea. In the event of death, the insurer could refuse to pay your benefit.

2- For a better price for your life insurance: Have a healthy lifestyle and avoid extreme sports

In addition to health status, healthy lifestyle habits are also an important factor in determining the amount of your premiums. So, playing sports, eating well and being fit are all elements that help you get life insurance at a better price.

On the other hand, beware of sports considered dangerous: practicing surfing, motocross, or parachute jump or bungee are habits that significantly increase your life insurance premiums.

3- For a better price for your life insurance: Subscribe a permanent life insurance young

To get life insurance at a better price, subscribe as soon as possible. In fact, the life insurance benefit is paid on death only. Thus, statistically, the younger you are when you take out life insurance, the less likely it is to happen soon.

This is even truer with respect to permanent life insurance. In fact, the amount of the premiums of a permanent life insurance is defined at the time of signing the insurance contract. If you sign it at age 25, your premiums could cost you $500 a year for $25,000 coverage. If you do it at age 50, that amount may double.

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4- For a better price for your life insurance: Invest through universal life insurance

Universal life insurance is another way to get life insurance at a better price. This variant of permanent life insurance allows the insured to manage their premiums in the form of investments. With this product, the insured can pay the exact amount of premiums, or more, and invest these amounts in investments.

Once again, the more you buy this life insurance, the more profitable it is, because your premiums will have more years to grow in stock market.

5- For a better price for your life insurance: Choosing term life insurance in times of financial risk

The price of a term life insurance is much lower than that of a permanent life insurance. For example, $450,000 (term life) coverage can be priced at the same price as $50,000 coverage (permanent life insurance).

As the name suggests, term life insurance is for people with temporary needs. Since permanent life insurance generally offers lower coverage, choosing a temporary plan allows you to enjoy high protection in life insurance at a better price.

6- For a better price for your life insurance: Choose an amount of coverage to meet your needs

We all want to get life insurance at a better price. However, the chosen product must also provide adequate protection to your loved ones at the time of death. So, the questions to ask yourself are: what is the best insurance product for me? How to get this form of life insurance at the best price?

To define the ideal product for you, it is important to look into your needs. List your debts and other financial needs you assume. It can be for example:

i) Auto loan
ii) Daycare fees
iii) Study of children
iv) Mortgage balance
v) Debts of study

To continue living without your financial contribution, how much would your family need? If you died today, how much are your debts? How much should your family pay for funeral expenses? These questions can be difficult to answer, and it is essential to leave nothing out. To be sure to think of everything, consult a life insurance broker.

7- For a better price for your life insurance: Consult a life insurance broker for free

The broker (or agent) in life insurance is an insurance professional in this field. When meeting with the broker, the broker will ask you the right questions to determine the insurance product that best suits your situation. Moreover, since his remuneration is paid by the insurers with whom he does business, his assistance is entirely free.

What is the distinction between a broker and an insurance agent? The broker does business with several different financial institutions. Its product offering is therefore greater. The agent represents an insurer. He therefore advises you according to the life insurance formulas of this insurer only.

8- For a better price for your life insurance: Gather your insurance at the same insurer

Most life insurance companies offer other types of insurance, whether it’s auto, home or travel insurance, retirement investment solutions, mortgages, credit cards, and more.

Most of us need to buy one or another of our financial products. By buying them at the same insurer, you will certainly buy life insurance at a better price.

9- For a better price for your life insurance: Pay your life insurance premiums annually

Finally, last thing on the list: the vast majority of insurers offer a discount of about 10 to 15% on your premiums if you choose the annual payment rather than monthly. By opting for this formula, you save a month in premiums. This is an easy way to pay a better price for your life insurance!