© BeProtectedFinancial.ca
All rights reserved.
Be Protected Financial | How to Keep Life Insurance Costs Down
70
post-template-default,single,single-post,postid-70,single-format-standard,bridge-core-1.0.4,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,qode-content-sidebar-responsive,qode-theme-ver-18.0.7,qode-theme-bridge,disabled_footer_top,wpb-js-composer js-comp-ver-5.7,vc_responsive

How to Keep Life Insurance Costs Down

How to Keep Life Insurance Costs Down

Many companies provide some underwriting guidelines on their websites so you can see which ratings class your height and weight will fit in to. Hypertension and cholesterol levels are determinants that you may also be able to influence by changing your diet or kicking up your exercise before applying.

How Much Life Insurance Should You Buy

One of the easiest ways to control your life insurance costs is to make sure you buy only what you need. Some people buy life insurance based on some general rule such as 10 times income.

How You Pay for Life Insurance.

Many people pay for their life insurance policy through monthly payments or automatic drafts from their bank account. You can lower your annual life insurance cost by as much as 10% by paying in one annual instalment.

By working on these measures prior to taking a medical exam for life insurance you could greatly influence the rating that is applied by the insurer. Additionally, you could take some steps right before your exam to improve your rating, such as fasting for a day which could help to lower your cholesterol.

Many health factors can be controlled or modified in a way to earn a more favorable rating. The obvious one is smoking, which can increase your insurance cost by as much as 50%.

Shop and Compare.

Life insurance rates have come down sharply in the last decade and competition among life insurance carriers has grown fierce, especially with the ability to shop and compare online. Just because one company’s premium is lower than another based on your age and general health, the underwriting standards can vary widely between companies. One company can offer a better standard premium rate, but it may be more difficult to qualify for it based on their underwriting guidelines or they may have a low credit rating.

Health Factors

Your health condition and history, including your family’s health history, is the biggest factor used to determine your rate. Life insurers have actuarially determined which health conditions present the greatest risk and will apply premium ratings or simply decline coverage accordingly. Even if you have some adverse conditions you should not be discouraged, as each company uses different standards in assessing risk and applying ratings, which is why it is important to look at several companies when applying for coverage.

Lifestyle Factors

Life insurers also consider the way you live and how hard you live in their assessment. Lifestyle or hobby choices such as dangerous sports, driving motorcycles or scuba diving may lead to increased insurance costs. (For more, see: The Importance of Life Insurance for Women.).

Many life insurance companies view such things as height-weight ratios, hypertension, cholesterol and other maladies differently. Your best course of action might be to work with a trusted insurance professional who has access to a wide range of different carriers.

It is important to note that insurance premiums are often discounted at different coverage thresholds. A $1 million policy may cost less than a $850,000 policy due to a premium break at the million dollar threshold. You can find premium breaks at $250,000 and $500,000 thresholds with some insurers.

Still, if you have a goal to be as efficient as possible with financial resources, curbing all expenses and costs is a priority, and buying life insurance is no different. While the cost of life insurance is predicated upon several factors over which we have little control, such as health, gender and age, there are many ways in which the overall cost can be reduced. One of the easiest ways to control your life insurance costs is to make sure you buy only what you need. You can lower your annual life insurance cost by as much as 10% by paying in one annual installment. Life insurance rates have come down sharply in the last decade and competition among life insurance carriers has grown fierce, especially with the ability to shop and compare online.

Still, if you have a goal to be as efficient as possible with financial resources, curbing all expenses and costs is a priority, and buying life insurance is no different. While the cost of life insurance is predicated upon several factors over which we have little control, such as gender, age and health, there are many ways in which the overall cost can be reduced.

Tags:
No Comments

Sorry, the comment form is closed at this time.