How to Save Money on Your Life Insurance Policy

Taking out a life insurance plan is one of the smartest things that you can do. While no one likes to talk about death, it's inevitable and will happen to all of us at one point in time or another. Fortunately, life insurance provides insurable interest to the borrower, who will be covered in the event of their passing. The death benefits are paid out to a loved one of your choosing so that they can pay bills, supplement a lost income or arrange the funeral. However, just because life insurance is a necessity doesn't mean that you have to pay a fortune for it. There are many ways to lower the costs of these plans without giving up on reliable coverage.

Compare Companies

No two insurance companies are alike, regardless of whether you're opening a life, health or auto-related policy. It is crucial that you compare different providers to see which one has the best rate. Many of these companies allow you to get a quote for the coverage needed, so you can see how much you'll be spending on the policy before you even make out an application.

Look at Available Coverage

There are dozens of different policies that you can take out in order to have the coverage that you need. However, it's important that you look for add-ons and features that you won't need. Some policies charge for these features and you might not know that they're there until you actually study the fine print.

Go for a Physical

You can save money on your premium if you go for a physical when signing up for an account. If you're unhealthy or have medical issues, you are typically seen as a liability to the company. In this case, they can either deny you coverage or increase your rate. However, if you consider yourself to be in relatively good shape, you could actually save money by proving to the insurance provider that you're not a liability to them.

Opt for Term Life Insurance

Term life insurance is one of the most popular options, especially for individuals on a budget. Term accounts will expire over time and they do not hold cash value, but will typically pay out large amounts for a small fee each month. For example, a healthy man in his thirties can take out a term policy for $500,000 for roughly $40 or $50 a month. The policy may only be good for 20 years, but it still provides you with a significant amount of coverage.

Don't Lie on Your Application

You should always be upfront about your health and medical history when making out your insurance application. Don't hide away problems that you have because they will eventually be found if and when you go for a physical exam. If you lie on the application, you may be able to get a low rate at first, but it'll be hiked up once the truth comes out. It's best to disclose any and all information so that you can get matched to the most accurate premium rate.