No one enjoys paying life insurance premiums, but having a good policy in place is the responsible thing to do if you have children, a spouse, or other people relying on your income. You can save money by shopping around for your policy, and considering the following tips:
- If you and your partner are both getting policies, buy them together as a 2 for 1 policy, as you can often save about 15%.
- Guaranteed issue policies are great for people with health problems, since they may not be able to get any other kind of policy. However, if you’re healthy, avoid guaranteed policies as the premiums will be higher.
- Occasionally, you can pay lower premiums for more coverage. It might not make any sense, but get quotes for the exact amount you need, and a couple of quotes for more than you need. If the premium is less, go for it. Otherwise, only pay for the coverage you need. Generally, this should be 5-10 times your annual gross income.
- Buy your policy before your next half-birthday, as you will generally be charged a premium for the age you’re closest to. If you’re 44 and your next birthday is in 5 months, you’ll probably be paying as a 45-year-old.
- Make one payment a year, instead of monthly payments. This way, you avoid administration fees involved with monthly payments.
