Can I do anything to lower the cost of life insurance?
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Asked December 20, 2011
Life insurance, like other types of insurance, allows you to make changes in the policy or your life that affect the amount you have to pay for coverage. Additionally, you can choose between term life and whole life policies, and the premium costs associated with each type. There are a number of ways to reduce the amount you have to pay for coverage, and some of the more common methods may already be available to you, in the form of discounts you simply were not aware of.
One way to lower the cost of insurance premiums of all types is to consolidate your insurance policies under a single company. Statistics have shown that it is unlikely for multiple policies held by a single person to have claims filed against them simultaneously, and that means you can save money on your life insurance premiums by having multiple policies, even of different types, with the same insurance company. For example, if your life insurance is purchased through the same underwriter as your home insurance, you can expect discounts on both policies.
Improving your health is another way to lower the cost of life insurance. Quitting smoking or losing weight are two examples of ways to lower your life insurance costs by acquiring better health, but don't try to fool the insurance company. If you claim to have quit smoking and then later die of a smoking related disease, the insurance company could claim that you committed fraud and refuse to honor the death benefits.
The type of policy you purchase will affect the rates you pay. Term life policies carry lower premiums than whole life policies, but you should consider your specific needs before you buy. Term life insurance is only good for the period of time stated in the policy, after which you will either have to renew the policy, convert it to whole life insurance, or forfeit the money you have paid in.
To find more ways to save money on life insurance, contact your insurance agent or the customer service department of your insurance company. Insurance is regulated on a state by state basis, and each company offers a different set of discounts as well as larger or smaller discounts when they are available. If your insurance company does not offer all of the discounts you are eligible for, you can save money by switching to a different company.
Answered December 20, 2011 by Anonymous