How to Save Money on Life Insurance

Posted by Ian on April-15-2011 under Save Money

Life insurance is probably one the most popular types of insurance in the world. Every modern society has hundreds, if not thousands, of smiling, “trust me” life insurance salespeople with a contract for you to sign. Life insurance, what is it exactly? The short answer is monies that will be paid after you or a member of your family leaves this world for the hereafter. In layman terms; the money your partner gets when you kick the bucket. It sounds very morbid and indeed it is. Paying out monthly or yearly insurance premiums is, at times, somewhat hard on the pocket and therefore it is important to find a life insurance policy that you are able to save money on. Let’s take a look at some methods of saving money on life insurance.

First of all, make sure you are reasonably healthy. Insurance companies will charge you an arm and a leg if you are obese, smoke ten packs of cigarettes everyday or suffer from some other illness like high blood pressure. If you prove to a life insurance salesperson that you take care of your health, you will be in a better position to discuss insurance charges. Being healthy doesn’t necessary mean you should suddenly take up weight-training, boxing or some other “power” sport, it simply means eating nutritious food and getting regular exercise. Healthy people also find they have a wider choice of life insurance packages. Indeed with a healthy lifestyle you will, definitely, save money on life insurance premiums.

life insurance

If you are a healthy individual you need to ask yourself whether life insurance is necessary. Young people who are single and enjoying the fruits of life, need not complicate their hedonistic lifestyle paying life insurance premiums every month or year. Indeed, if you are young and healthy with no spouse don’t let some smooth talking life insurance salesperson try to beguile you into signing something that, in six months or a year, you want nothing to do with, remember you have many years ahead of you – enjoy them. On the other hand, if you are married, have children and other financial responsibilities having a life insurance policy is a wise, albeit important, thing to have.

As mentioned above there are various life insurance packages available and one of these packages is the “term policy”. This particular policy is the cheapest and simplest to understand. With a term policy you have the option of saving money by investing in some company or business – there is usually an investment clause in the contract. It seems many insurance companies want to invest your money in order to make money. By forgoing this option, in your contract, you are free to invest the extra money yourself – why let the insurance company make money from you. For those that understand how to play the stock market with a term policy you have the wherewithal to be a Wall Street high-roller. If, on the other hand, wearing suspenders and staring at stock sheets is not your thing, you are free to put this extra cash into a high interest savings account.

For the many that do want to buy life insurance, it is important not to buy more than you need; the more you buy the more money you have to shell out every month or year. Some insurance salespeople will try to convince you to sign your John Hancock to more than one policy. He or she will try to bamboozle you with facts and figures that are designed to confuse and pressure you into signing another contract. Stand your ground and politely, but adamantly refuse. If you have a policy that covers all your loved ones, it does not make sense to buy another policy – remember life insurance salespeople receive bonuses if they surpass their monthly quota.

Prior to signing a life insurance contract, make sure you read everything written. Many don’t read the entire document and this eventually leads to misunderstandings which, in turn, lead to angry phones calls and finally policy cancellations. Also make sure you understand the terms of payment. If you choose to pay monthly, quarterly or annually, do the math and choose the method that will save you money.

Shopping around for the best deal, as well as the best insurance company, is always a smart thing to do. Various companies will offer you various packages all designed to attract you. It is therefore, up to you to sift through the “window dressing” and find the real deal. I recommend calling a salesperson out to your house and letting him or her give you their pitch. There’s no doubt you’ll be impressed with what they tell you, however you have to remain nonchalant and non-committal – make these people work for their living. As mentioned above, shop around and check out as many life insurance companies and their deals as possible; it is your life and you want, albeit need, to be sure.

You can also check out other money saving tips like how to save money on pet care, how to save money on office supplies, or how to save money on food on vacation.

Using a “life insurance company finder tool” found on the internet will help you in finding a reputable firm. Software similar to FiveCentNickel, is supposed to be ideal for searching, not only insurance firms, but is also able to glean information from many companies as well – check it out. There are many more tips on how to save money on life insurance available on the Internet, take your time and search until you find a company and policy that you’re happy with.

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