Philip Moeller, a writer for U.S. News & World Report,says he shops around for a new insurance policy once a year. According to Moeller, the average person spends over $4,000 on insurance a year, with just over $300 being on life insurance.
With life insurance in mind, he said as people age, the protective objectives of life insurance diminish and less coverage may be prudent.
Kimberly Lankford, a contributing editor for Kiplinger's Personal Finance, says that people can save on life insurance by calculating how much is actually needed, shopping for a lower rate on a consistent basis, paying annually rather than monthly and cutting premiums with term insurance. She said term insurance provides a set amount of life insurance at a fixed rate for a certain period and may be good for younger people.
Moeller writes that shopping for new insurance should be something that done often, whether life insurance or a different kind. He said he dodged a 40 percent increase in his home and car insurance by shopping around and switching insurance companies last year.