Tips to Lower My Term Life Insurance Costs

Many people in their prime working years are keen to secure their family's financial future without breaking the bank.

If you're between 25 to 65 years old and looking to lower your term life insurance costs, you're in good company.

In this guide, we'll share practical tips to save money, optimize coverage, and make informed decisions, ultimately leading to better financial planning.

Guide to Lowering Cost of Term Life Insurance

Quick Review

To lower your term life insurance costs, consider maintaining a healthy lifestyle by exercising regularly, eating a balanced diet, and avoiding smoking, as insurers often offer better rates to healthier individuals.

Additionally, shop around and compare quotes from multiple insurers to find the best deal. Opting for a longer term policy while you are younger can also lock in lower rates. Lastly, review your coverage needs periodically to ensure you are not over-insured, which can unnecessarily increase your premiums.

Compare Rates

The first step to reducing your term life insurance premiums is to compare quotes from multiple providers. Different insurance companies offer varying rates based on their underwriting criteria. Websites like JRC Insurance Group, Policygenius or NerdWallet make it easy to compare rates and find the best deal.

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Don’t Delay

Get insured early: The younger you are when you purchase your policy, the lower your premiums will be. Insurance companies base premiums on age and health status, so locking in a policy at a younger age can mean significant savings over the term.

Get Healthy

Improving your health can have a substantial impact on your premiums. Lose weight, quit smoking, and lower your cholesterol to potentially qualify for better rates. These lifestyle changes show insurers that you're a lower risk.

Policy Term

Opting for a shorter policy term can also reduce premiums. If a 10- or 15-year policy is sufficient for your needs, it will typically cost less than a 20- or 30-year policy. Assess your financial responsibilities and choose a term length that aligns with your goals.

Coverage Amount

Another effective strategy is to adjust your coverage amount. While it’s important to have adequate coverage, ensure you’re not over-insured.

Calculate how much your family will realistically need, taking into account existing assets and debts. Use a life insurance needs calculator to accurately determine your needs.

Premium Payment Options

Annual premium payments can save you money compared to monthly payments. Many insurance companies charge additional fees for the convenience of monthly billing. Paying annually can eliminate these extra charges.

Group Life insurance

Consider group plans through your employer or professional associations. Such plans often come with lower premiums because they're based on group underwriting rather than individual health assessments.

Discount for Bundling Policies

Bundle policies for potential discounts. If you already have home, auto, or health insurance, check with your provider to see if they offer a discount for bundling your term life insurance policy.

Supplemental Policies

If your employer coverage isn’t sufficient, shop around for supplemental policies. Sometimes, supplemental coverage can offer better rates or additional benefits that complement your existing policy.

Level Term Life Insurance

Understand the importance of level term life insurance. These policies offer fixed premiums for the entire term, protecting you from price increases as you age. This stability can make financial planning easier and more predictable.

Credit Score

Improve your credit score. Some insurers use credit scores as a factor in determining premiums. A better score can lead to lower rates, similar to how they can reduce your mortgage interest rates.

Medical Examination

When applying for a policy, consider the medical exam. Those in good health typically receive lower premiums. However, if you have health concerns, there are no-exam policies available, though these often come with higher rates.

Compare Prices Annually

Shop for insurance annually. Life circumstances change, and so do insurance prices. Regularly reviewing your policy and shopping for new quotes can reveal potential savings and better rates. 

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Reassessment for Your Health

Ask for a reassessment if your health improves. If you've adopted a healthier lifestyle since your initial insurance application, request a rate reevaluation. Insurance companies can adjust premiums to reflect your improved health status.

Financial Strength Rating for Insurer

Don't overlook the financial stability and ratings of insurance companies. Use resources like AM Best or the National Association of Insurance Commissioners (NAIC) to ensure the provider can pay out claims when needed.

Negotiate Better Rate

Negotiate better rates with current insurance providers. If you've found a better deal, use it as leverage to negotiate lower premiums on your existing policy.

Healthy Lifestyle

Engage in lifestyle improvements that are recognized for lowering insurance premiums, such as regular exercise, a healthy diet, and regular medical checkups to catch potential health issues early.

Independent Insurance Agent

Reach out to an independent insurance agent. They have access to a variety of insurance providers and can help you find the best policy to fit your needs and budget.

Ask About Discounts

Understand and utilize all available discounts. Some companies offer discounts for non-smokers, good health, safe driving records, and even for being a member of certain professional organizations.

Summary

Armed with these tips to lower your term life insurance costs, you can now make informed decisions, save money, optimize your coverage, and contribute to your financial planning. Don't forget to regularly request free quotes to ensure you're always getting the best deal possible.

Compare Life Insurance Quotes

Top Pick – JRC Insurance Group

JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 63 top life insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.