7 Tips to Save Money on Life Insurance

Discover expert tips to lower life insurance costs and secure your family's future. In this comprehensive guide, we provide seven valuable tips to help you save money on life insurance. Learn how to find the right policy, take advantage of discounts, plan for the future, and more. By comparing quotes from top insurance providers, you can find affordable coverage that meets your needs.

UPDATED: Jul 30, 2023Fact Checked

Free Life Insurance Comparison

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Daniel S. Young

Insurance Content Team Lead

Daniel S. Young is a journalist based in Birmingham, Alabama. He began his professional career in 2018 as a writer, editor, and later chief editor for his student newspaper, The Chanticleer, at Jacksonville State University. He also has written bylines for The Anniston Star, a local newspaper in Anniston, Alabama. He holds a BA  in Communication with a focus in Digital Journalism and is pursuing ...

Insurance Content Team Lead

Dani Best

Licensed Insurance Producer

Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...

Licensed Insurance Producer

UPDATED: Jul 30, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

UPDATED: Jul 30, 2023Fact Checked

Welcome to our comprehensive guide on “7 Tips to Save Money on Life Insurance.” In this article, we will share valuable insights and practical advice to help you reduce the cost of life insurance while ensuring your family’s financial security. Our expert tips cover essential topics such as choosing the right policy, taking advantage of discounts, planning for the future, and more.

To make informed decisions and find the best rates from top insurance providers, enter your zip code now and compare quotes for the best life insurance companies. Don’t miss out on the opportunity to save money and provide your loved ones with the protection they deserve.

  • Get the right kind of policy. There are two main types of life insurance, and each one has benefits and disadvantages. Term life insurance is
    best applied to goals that have a specific time limit, such as providing for college tuition or paying off the mortgage on the family home. Permanent life, also called whole life, will follow you throughout your entire life and is a good choice for many reasons, including the ability to use it as a way to help you meet goals while you are still living.
  • Buy life insurance while you are younger. The sooner you buy life insurance in your life, the lower your premiums will be. Insurance companies base part of your premium on your life expectancy, so you can save money by purchasing a whole life policy when you are in your 20’s or early 30’s. Additionally, buying a whole life policy early means that you will have more
    accrued value in the future. This could be useful for adding a new room to the home or some other future goal.
  • Multiple policies with one company will save you money. Insurance companies consider someone purchasing more than one insurance policy through the same company as a form of customer loyalty. Additionally, you are less of a risk when you have multiple policies because of the odds against having to pay out on two policies at the same time. If your life insurance company also underwrites health, home or auto coverage, you could lower your insurance costs by using them as your primary insurer.
  • Brokers work for you. Insurance brokers are independent insurance representatives. They can save you money because they deal with multiple insurers and can choose between companies to find the best deal for each customer. If you are dealing with a dedicated, or captive agent, then your options for coverage will be more limited, and you may be encouraged to
    purchase coverage that you really don’t need.
  • Plan for the future. Life events happen at different times, and it may be necessary to take out more than one life insurance policy to protect the things you hold dear. In most cases, a single whole life policy can be complemented by term life policies to cover the things that come up later. You do not have to anticipate all of your insurance needs when you buy your
    first policy, and can save money by waiting to buy extra coverage until you need it.
  • Do not own your life insurance policy. If you are listed as the owner of your own insurance policy, any proceeds from your life insurance policy can be taxed as part of your estate. Insurance agents and accountants alike advise people to assign ownership of their life insurance policies to the beneficiary or a trusted executor.
  • Shop around before you buy. You do not have to buy the first policy you get a quote on. Life insurance is an important financial tool and should be treated as such. Shop around, study the companies you are considering and make sure that you are investing your insurance premiums in a company that is going to be around for at least as long as you are.

Read more: How does life insurance work?

Case Studies: Real-Life Examples of Money-Saving Strategies for Life Insurance

Case Study 1: Policy Comparison
John, a 35-year-old married individual with two children, conducted a thorough comparison of life insurance policies from multiple providers. By diligently comparing coverage options, policy features, and premiums, John was able to find a policy that offered the desired benefits at a significantly lower cost.

Case Study 2: Healthy Lifestyle Choices
Sarah, a 40-year-old non-smoker, decided to adopt a healthier lifestyle by quitting smoking and regularly exercising. As a result, Sarah was able to secure life insurance at a lower premium rate due to her improved health status, which translated into savings over the long term.

Case Study 3: Term Length Adjustment
Mark, a 30-year-old professional, analyzed his financial goals and realized that he only needed life insurance coverage until his mortgage was paid off in 20 years. By opting for a term policy with a shorter duration, Mark could save significantly on premiums compared to a whole life insurance policy.

Case Study 4: Underwriting Review
Emily, a 45-year-old individual, underwent a comprehensive medical examination to assess her health condition more accurately. The results revealed that her overall health was better than what was initially assumed by the insurance provider, resulting in a lower premium rate for her life insurance policy.

Case Study 5: Bundle Policies
Peter, a 50-year-old homeowner, discovered that he could save money on his life insurance by bundling it with his home insurance policy from the same provider. This approach not only provided Peter with convenience but also qualified him for a discounted premium rate.

Case Study 6: Policy Riders Evaluation
Lisa, a 28-year-old professional, carefully evaluated various policy riders and additional coverage options offered by insurance providers. By opting for only the necessary riders that aligned with her specific needs, Lisa could tailor her policy to be more cost-effective while still providing essential coverage.

Case Study 7: Regular Policy Review
Michael, a 55-year-old retiree, consistently reviewed his life insurance policy to ensure it met his evolving needs and circumstances. During one such review, Michael discovered that his policy’s face value was higher than necessary. By adjusting his coverage amount to align with his current requirements, Michael reduced his premium payments significantly.

Frequently Asked Questions

What is life insurance?

Life insurance is a contract between an individual and an insurance company that provides financial protection for the individual’s beneficiaries in the event of the individual’s death. The individual pays premiums to the insurance company, and in exchange, the insurance company pays a death benefit to the individual’s beneficiaries upon the individual’s death.

Why is life insurance important?

Life insurance is important because it provides financial protection for your loved ones in the event of your unexpected death. It can help cover funeral expenses, pay off outstanding debts, and provide ongoing financial support for your family.

What are the 7 tips to save money on life insurance?

The 7 tips to save money on life insurance are:

  • Start young and healthy: The younger and healthier you are when you purchase life insurance, the lower your premiums will be.
  • Choose term life insurance: Term life insurance is generally less expensive than permanent life insurance.
  • Shop around: It’s important to shop around and compare rates from different insurance companies to find the best policy for you.
  • Consider a higher deductible: Choosing a higher deductible can lower your premiums.
  • Quit smoking: If you’re a smoker, quitting can significantly lower your life insurance premiums.
  • Maintain a healthy lifestyle: Maintaining a healthy lifestyle can also lower your life insurance premiums.
  • Pay annually: Paying your premiums annually, rather than monthly, can save you money in the long run.

What is the difference between term life insurance and permanent life insurance?

Term life insurance provides coverage for a specific period of time, usually between 10 and 30 years. It is generally less expensive than permanent life insurance and does not accumulate cash value. Permanent life insurance provides coverage for the insured’s entire life and includes a savings component that can accumulate cash value over time.

How much life insurance coverage do I need?

The amount of life insurance coverage you need depends on several factors, including your income, outstanding debts, and the financial needs of your dependents. A general rule of thumb is to purchase a policy that provides coverage equal to 10 times your annual income.

Can I change my life insurance policy?

Yes, you can usually change your life insurance policy. You can increase or decrease your coverage, change your beneficiaries, or switch to a different type of policy. However, any changes you make may affect your premiums or the length of time it takes for your policy to accumulate cash value.

How do I choose the right life insurance policy for me?

To choose the right life insurance policy for you, consider your financial goals, budget, and the needs of your dependents. It’s also important to compare rates from different insurance companies and speak with a licensed insurance agent or financial advisor.

Compare The Best Insurance Quotes In The Country

Compare quotes from the top insurance companies and save!

secured lock Secured with SHA-256 Encryption

Daniel S. Young

Insurance Content Team Lead

Daniel S. Young is a journalist based in Birmingham, Alabama. He began his professional career in 2018 as a writer, editor, and later chief editor for his student newspaper, The Chanticleer, at Jacksonville State University. He also has written bylines for The Anniston Star, a local newspaper in Anniston, Alabama. He holds a BA  in Communication with a focus in Digital Journalism and is pursuing ...

Insurance Content Team Lead

Dani Best

Licensed Insurance Producer

Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...

Licensed Insurance Producer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Free Insurance Comparison

Compare quotes from the top insurance companies and save!

secured lock Secured with SHA-256 Encryption