If you're looking for affordable term life
insurance rates to protect your family in case of the worst, you
may be having trouble getting a good quote. Fortunately, you don't
have to be stuck with high rates or bad plans. There are a few
things you can do to get a good rate, without sacrificing quality
on your insurance policy. You're already making a smart choice
with term coverage. It usually gives the most coverage and best
death benefit for the least cost. If you're under 45 and don't
have a lot of money to spare, term life insurance is probably the
best way to go. There are, however, some other ways that you can
reduce your premium on this cost-effective kind of insurance.
First, look for no-commission policies.
Also called “low-load” policies,
these insurance plans have fewer built in expenses, including marketing
fees and agent commissions. By not going through an agent, you
can save yourself a little bit of money. Low-load policies are
purchased through financial advisers. They charge the insurance
company a flat fee for their services, not a commission based on
sales volume. You can also get these policies directly from some
insurance companies. Do a little research, and you could have a
policy without all the added fees.
If you're healthy, avoid the temptation to take a no-exam or guaranteed
issue policy. Because these insurance policies don't require you
to prove your health, they're more risky for the insurance provider.
When an insurer thinks that they're stepping into a risky situation,
premiums go up. No-exam policies also usually offer a low death
benefit, which removes some of the savings you're getting from
term life insurance. If you think you can pass the physical exam,
go with a standard term policy instead, and get the savings that
the insurance company offers to healthy people they insure. Guaranteed-issue
insurance is a good option for only a very few people. It's even
possible to pay more in premiums for these policies than your family
will receive in the event of your death.
To make sure that you're getting the best rate available, start
your shopping online. Not all online services will give you the
best quote available, but they're a useful source of information
about the prices current in the industry. The more accurate the
information you give, the more accurate your quote will be. However,
a low quote should still be used as a basis for shopping around.
You might be able to use it to get a better deal with a local agent,
If you're really looking to save money
on term life insurance, one more way is to get healthier. Stop
smoking and drinking, and get more exercise. These are things
that will improve your rate almost immediately. Smokers can pay
as much as twice the monthly premium that nonsmokers do. High
blood pressure, diabetes, and heart disease are also bad for
your insurance premiums – doing
things that contribute to these conditions makes the insurance
companies nervous. If you have the option, give up your bad habits,
for your health, and to reduce your term life insurance premiums.