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One of the least expensive forms of life insurance is term life coverage. Even though this type of insurance policy costs less almost all others, you may be able to save a little more money if you know how. Here are some tips to follow so you can reduce the amount of your term life insurance policy without reducing the amount of your coverage.
? Purchase life insurance When You’re Young If you want to save money on term life insurance, be sure to purchase your policy when you are still young. You’ll end up paying less for your annual premiums than older individuals who decide to obtain coverage. life insurance companies base their rates on the likelihood that you will die during the term of your policy. That’s why individuals who are young and healthy pay less for coverage. Purchasing a term life insurance policy early in life can provide you with an affordable way to ensure your financial security. ? Enroll in a Program to Stop Smoking Certain life insurance providers offer incentive programs and discounts to policy holders who are trying to quit smoking. Some companies will refund you the difference between the premiums you paid as a smoker and those you would have ended up paying if you were a non-smoker. Even better, certain insurance companies will adjust your premiums to equal those of a non-smoker based on the age when you bought your life insurance policy instead of the age when you actually quit smoking. ? Be Aware of the Age Your Insurer Will Use Even though your birthday may be 6 months away, many life insurance companies will use your upcoming age to determine your premium rates. Most life insurance quotes are based on the age based on whether your last birthday or upcoming birthday is closer. Approximately half of the time they will calculate your age as your upcoming age, rather than your current age. For example, if you are 36 and 2 months, your insurance company will consider your age as 36. However, if you are 36 and 7 months, your age will be calculated as 37. This practice is called Age Nearest and the half-year difference can cost you quite a bit more for your insurance policy. ? Inquire About Billing & Payment Options Many life insurance companies will offer you a discount if you pay your annual premiums in one lump sum instead of monthly. If this is a viable option, you may be able to save anywhere from 3.5 percent to 12 percent of your annual premiums. There is no excuse not to purchase insurance to protect you and your family members. You can save even more money on a term-life insurance policy by following the above tips. |
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