10 Simple Ways to Get Lower Term Life Insurance Premiums

Life insurance is one of the most important purchases you will ever make. Having the peace of mind that your family is protected, even if you are no longer able to provide, is priceless. That being said, it is also important to secure quality coverage at a price you can afford. There are a number of measures you can take right now to help you save on the coverage you and your family need.

As you shop for coverage, we encourage you to keep each of the following tips in mind:

1. Maintain a Healthy Weight

It’s no surprise that maintaining a healthy weight attributes to your overall level of health. Life insurance companies factor in your weight to height ratio when assessing your life expectancy which plays a role in determining your premium. Maintaining a healthy weight, eating a healthy diet, and exercising regularly can translate into big savings.

2. Avoid Tobacco Products

Insurance carriers take tobacco use into consideration as they determine your level of health and your rate class. Cigars, cigarettes and other tobacco products are considered health risks and affect your life insurance rate. Before applying for life insurance we encourage you to kick the habit. Not only is it better for your health, it can help you save big when it comes to life insurance coverage.  Note that most insurance carriers require an applicant to be tobacco free for at least one year to qualify for non-tobacco rates.

3. Shop Around Through an Online Life Insurance Brokerage

Online life insurance brokerages, like Efinancial, allow you to shop for and compare policies quickly and conveniently. Brokerages, who offer quotes from multiple insurance carriers, provide an objective view of your life insurance options. By taking the time to shop around for your life insurance coverage, you can rest assured that you’re getting the best value available to you. Many online life insurance brokerages even offer live assistance, from licensed insurance agents. Take your time, learn about your options and ask questions; you’ll likely be surprised to learn just how much information is available at the click of your mouse.

4. Keep Chronic Medical Conditions Under Control

Although chronic medical conditions often result in higher premiums, you can qualify for lower premiums from some insurance companies if you keep good control of your condition. Additionally, if you have a chronic medical condition it’s even more important to shop around. Often times, one insurance company will offer better rates for a specific condition over another carrier. For example, some insurance carriers are known to provide better rates to diabetic applicants in comparison to their competitors.

5. Keep a Clean Driving Record

People are often surprised to learn that keeping a clean driving record can actually help to lower life insurance rates. Underwriters consider your driving behavior when assessing your lifestyle and your risk of death. Before hurrying out the door to your next meeting, remember that a traffic violation can translate into extra out-of-pocket expenses in the way of life insurance coverage.

6. Buy Earlier Rather Than Later in Life  

Purchasing life insurance earlier in life when you are healthy is one of the best ways to save on life insurance premiums, particularly if you have a family history of serious illness. Young applicants attract lower premiums and better deals on life insurance coverage. Rather than waiting until you’re older, buy life insurance now and lock in a lower rate.

7. Consider a Term Life Policies Rather Than Whole Life

Term life insurance policies are generally more affordable. Term policies are issued for a predetermined period of time while whole life policies never expire. Because of this, term policies are attached to lower premiums.  A term policy can provide the protection you need at a budget-friendly rate.

8. Properly Prepare for Your Medical Exam

Medically underwritten life insurance policies require applicants to submit to a medical exam. The results of the exam help the carrier assess your health and determine your underwriting class. Depending on underwriting guidelines your exam may include: height, weight and blood pressure measurements, urine sample and blood samples. Be sure to ask your life insurance agent which tests you will be taking and how you can prepare. Exam prep may include: fasting for 4-12 hours, drinking water prior to the exam, avoiding high fat and high cholesterol foods, and getting a good night sleep the night before. Taking each of the recommended precautions helps ensure accurate results and can help you lock in lower life insurance premiums.

9. Consider Annual Premium Payments Rather Than Monthly

Once you’ve selected a life insurance policy, ask about payment options. Carriers sometimes offer discounts when you opt to pay your premium annually rather than on a monthly basis. While paying an annual premium will cost more initially, it can add up to significant savings over time.

10. Ask About Price Breaks

When comparing coverage amounts, ask about price breaks. You may find that some carriers offer breaks at certain coverage amounts. That’s right, if you’re considering purchasing $240,000 in life insurance coverage, it’s a good idea to price compare with a policy with $250,000 in coverage. Many insurance carriers adjust their rates in $250,000 increments which can equate to lower rates for more coverage. So don’t be shy, ask about price breaks. You may be pleasantly surprised!

Purchasing quality, affordable life insurance today can create significant financial protection for your loved ones. Keep each of these tips in mind while you are shopping for the best value. We encourage you to explore the rest of our Life Insurance ELearning Center and to visit our Life Insurance Blog for tips and tricks to help you find the coverage you and your loved ones are looking for.