Insurance Basics: Everything You Need to Know

Five Things That Could Be Unnecessarily Driving Up The Costs Of Your Life Insurance

Life insurance is a necessity if you have dependents relying on you for financial support. You need to be able to work your life insurance payments into your monthly budget for the peace of mind of knowing that your dependents will be supported if something should happen to you.

If you're getting quoted rates on life insurance that seem high or unaffordable to you, there may be a few things you can do to bring your rates down. The following are five things that could be unnecessarily driving up the costs of your life insurance:

You're getting whole life rather than term life insurance.

Whole life insurance is more of an investment product. The money you put into a whole life policy will stay with you. On the other hand, a term life insurance does not accumulate value over time and only offers a death benefit payout within the life of the policy.

Although whole life insurance accumulates value, it's important to note that its monthly premiums tend to be significantly more expensive than those of term life insurance policies. It therefore may be a good idea to look for term life insurance quotes rather than whole life insurance quotes if your goal is to bring down costs. 

You're taking preventable health risks.

Life insurance providers will typically carefully evaluate the condition of your health in determining how much they will charge you for your policy.

If you're engaging in unhealthy habits or behaviors like smoking, you're going to have to pay more for life insurance. Kicking these unhealthy habits could help bring down your life insurance costs. 

You're considering a death benefit that's more than your beneficiaries need.

The larger the death benefit is on your policy, the more your monthly premiums are going to cost. You should crunch the numbers and figure out how much your beneficiaries will need to support themselves in the event of your untimely death. This way, you won't be paying for a larger death benefit than you need. 

You're only looking at quotes from one company.

You're more likely to find a good deal on your life insurance if you shop around for quotes rather than just getting one quote from one provider. Compare various offers and choose the one that provides the best value for you. 

You haven't bundled your insurance policies.

Most consumers out there will require at least auto insurance and possibly homeowners insurance as well, in addition to life insurance. By bundling all of your insurance policies with the same provider, you may be able to enjoy a discount on each individual policy. 

Talk with a life insurance agent for more assistance.