10 Tips to Help You Save On Life Insurance Premiums
Save money on Colorado life insurance today. 10 easy tips to help you save serious money on your life insurance policy premium.
1. Read and understand the fine print.
In a number of cases, insurance companies will feature 'expedient monthly payments' that are routinely taken away from your checking account. On the other hand, certain insurance companies charge policyholders service fees that goes up to around 15% to 20% of your yearly premium for the benefit of these auto deductions. Sometimes you would not even know about these payments as they are built into the payments.
2. Negotiate at all costs
If your health remains good, there is no reason that you should compromise. For example, weight lifters usually weigh more than an average person though the fact remains that they are in better shape. In such an instance, you could write a letter to your insurance company and insist on getting better premiums on the basis of your healthy lifestyle.
Also, if you are not a regular cigar smoker and smoke once or twice a year, there is a chance that you are paying as much as someone who smokes 2 packs a day, if you stated on your health exam you 'smoked occasionally.' Hence, this can be used as a good rationale to bargain a better premium.
3. Specialty Insurance Company for People with Heart Problems
It would save you a lot if you are able to fine a life insurance company that specializes in particular diseases and lifestyles if you suffer from health issue such as diabetes or heart disease. These companies take up exceptional underwriters trained to examine the coverage of some diseases.
For example, in place of placing all heart disease patients in one group, policyholders are classified in two groups; those who regularly take their medication and exercise and those who don't. Someone with their disease under control can save as much as 50% on their premium over someone who does not control their disease.
4. The 250K rule
Interestingly enough, as you come up to multiples of $250,000, more insurance sometimes comes cheaper. If you have the intention of purchasing $240,000 in life insurance, it would be advisable to check what the rates are for $250K. You might be surprised to find out that it costs less. For instance, $240,000 will cost $274.80 per year. If you buy $250,000, it will cost $260.
5. Buy on Your Own, Not Through Your Job
It is usually advised for one to get insured on their own instead of being insured through your job. Keeping in mind that there is no federal law affirming your old employer must permit you to keep the coverage if you become immobilized and can no longer work, even if you pay the bill.
6. Lose Weight
Your insurance premium can be around 50% higher if you are overweight as compared to those who are the appropriate weight for their height. A Body Mass Index (BMI) reading which measures the fat percentage of your body might be taken up by certain companies as a dependable measure of health.
7. Riders Aren't Worth It
Make sure that you take a look at the extras filling your life insurance bill. A number of them are not worth the paper they are printed on. 'Double Indemnity' riders, for a small fee, assures to pay your survivors twofold the face of a policy if you die in an accident. On the other hand, most people have a superior chance of winning a sweepstake than by dying by fortuitous death. Also, you can leave out buying the 'waiver of premium' rider which pays your coverage if you're immobilized. As an alternative buy disability insurance to cover this for which you might pay less.
8. Low-Load Companies
Certain life insurance companies are known for selling insurance for slight or no commission which in turn means major savings for you. In actual fact, there are certain companies who sell whole life policies this way. Your insurance broker might help you locate such companies.
9. Find the Down Side
A number of companies use different terms for life insurance such as
- mortgage-protection policies;
- retirement plans; and,
- tax-free savings plans.
However, don't be taken by the talk of tax-free accumulation of cash value in a whole life insurance policy. Many times, this will mean
- high commissions;
- many payments before any sizeable cash value is accumulated; and,
- huge penalties if you get out early.
Always be aware of the down side of what you are buying.
10. Say NO to Cigarettes and Tobacco!
Get rid of all your nicotine habits. Insurance companies know that tobacco users are likely to die early. Smoker's insurance premiums are usually set 20-50% higher for tobacco users than non smokers and those who do not chew tobacco. But, make sure you tell your company the truth if you smoke. If you die and your heirs file a claim, the insurance company may decline to pay it if they find out you were, in fact, a smoker. |
