Life Insurance Premiums

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HSBC™ Term Life Insurance
Get $500,000 coverage online, in less than a day. Learn more now!

SBLI Life Insurance
$300K Coverage, age 35, $10.96/mo. Get Your Free Life Insurance Quote!

Steps to Lower the Cost of Premiums

You do have some power in controlling your life insurance premium costs. The following are ways to reduce or obtain lower life insurance premiums:

1. Compare, compare, compare. Comparison shopping is the only way you can know if you are getting a good value. Know the market by getting more than one quote. Comparing prices is critical to getting the right life insurance at the right price. The difference in pricing can range greatly. Some insurers will cost twice as much as another. Besides price, check the financial ratings (mostly by A.M. Best) of potential insurers to make sure that they are financially stable and have good business practices. Find out how their policies are ranked as well.
2. Only buy what you need. Don't let anxiety or emotions rule your decision-making process. Life insurance companies hope that you will purchase more insurance coverage than you really need. Keep in mind, you have a higher chance of being off work for more than 90 days than dying between the ages of 40 and 64.
3. Plan ahead for renewals. Consider guaranteed renewal policies if you buy term life insurance. You may pay a slightly higher percentage in the beginning, but this will decrease upon each renewal.
4. Buy in good health. Buying young is when you are at the lowest possible risk and are eligible for extremely low rates. Purchasing life insurance after you develop a serious health problem means you have just become a bigger risk and your life insurance premiums will be higher.
5. Quit smoking. Smokers pay much higher premiums, whereas, non-smokers get a discount on life insurance policies.
6. Stay fit. Maintaining a healthy weight is important to achieve low premiums and remaining low-risk. If your weight changes substantially, up or down, the life insurance company will view it as a bad sign. Maintaining a healthy lifestyle will likely get you a lower life insurance premium.
7. Get the pack mentality. If you have access to group life insurance, take it. Group life insurance is almost always cheaper than individual life insurance. Your alumni association, career-related groups or other affiliations may offer insurance programs at much lower rates. There may be other associations that you already belong to that offer group life insurance. Do your research to find out what you have available.