Mar 13 2009
How to Save on Term Life Insurance Rates
Keep these cost saving and premium reducing points in mind when looking for term life insurance :
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Purchase insurance at a young age and when in good health. Costs for life insurance are established on the risk of death during a certain period of time. Companies base this on observation of events and governmental data. Insurance providers use this data to figure the annual expense of death for every thousand dollars of life insurance benefits. In the beginning, premium rates rise slowly before middle age. As person ages, the risk of death goes up, and the premiums reflect this.
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Stop smoking. Premiums for smokers are much higher (about three times) than premiums for non-smokers. Avoiding cigarettes for a few weeks prior to an exam does not work. Urine tests will find small amounts of nicotine in your system. Almost every insurance company expects you to have been a non-smoker for at least a year. A few will expect a couple of years.
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Keep a healthy weight. Insurance companies may ask for more money if you are overweight.
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Avoid the middle man. It is simple to look for life insurance online without having to deal with sales agents. When you avoid the agent, you avoid paying the commission included in the premium.
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Stay fit. If you are in good physical condition, you do not have to get a guaranteed issue policy. If you have pre-existing conditions, it may be good to buy a guaranteed issue policy. Guaranteed issue polices do not have an exam requirement. The premiums are more expensive because the insurer takes a chance by not knowing the nature of your pre-existing conditions. Get the physical if you are in good shape. Your cost will be less because you will show that you are not high risk.
