Why You Need Life Insurance and How to Get It Cheap 2

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Why You Need Life Insurance and How to Get It Cheap 2

If there’s one golden rule I’ve learned, it’s this—getting life insurance early pays off, quite literally.

1. Start Young

When you’re younger, you’re healthier, and that makes your premiums much lower. Insurers take into account things like health, age, and lifestyle when determining your premium, and being younger puts you at an advantage. By getting life insurance in your 20s or 30s, you can lock in a much lower rate compared to waiting until you’re older.

2. Opt for Term Life Insurance

I prefer term life insurance if I want to keep things simple and affordable. Term insurance is much less expensive than whole life insurance because it provides coverage for a set number of years (like 10, 20, or 30 years) rather than your entire life. It’s ideal for someone like me, who just wants to make sure that while my kids are growing up or until my mortgage is paid off, there’s coverage in place. And because it’s limited to a specific term, the cost is lower compared to permanent life insurance.

3. Shop Around and Compare Quotes

I can’t stress this enough—shopping around makes a difference. Insurance companies offer different rates for similar coverage, and by comparing quotes, I can often find a better deal. There are several online platforms and brokers that make comparing quotes a breeze, saving me both time and money. I always use this step to make sure I’m not overpaying for something I could get cheaper elsewhere.

4. Use a Broker

I think using an insurance broker is one of the smartest ways to save money on life insurance. Brokers work with multiple companies, and they can compare policies on my behalf. They often have insights into discounts or know which companies are more favorable to different kinds of health histories. Plus, having an expert do the legwork makes the process easier and less time-consuming.

5. Avoid Unnecessary Add-Ons

Life insurance policies sometimes come with add-ons or “riders” like critical illness cover or accidental death benefit. While these can be useful in some cases, I always ask myself whether they’re worth the additional cost. Removing unnecessary riders can help reduce the premium and make life insurance more affordable. I prefer to keep my coverage simple and avoid features that I’m unlikely to need.

6. Maintain a Healthy Lifestyle

Keeping healthy isn’t just good for me—it’s also good for my insurance premium. Insurance companies consider factors like smoking, drinking, weight, and overall health when determining how much I pay for life insurance. By staying fit, eating healthy, and avoiding risky habits like smoking, I can lower my premium substantially. It’s also worth considering that some companies offer discounts to people who are proactive about their health, like participating in wellness programs.

7. Opt for Annual Payments

It may seem easier to pay a monthly premium, but paying annually could save me money. Many insurers add a surcharge for splitting the premium into monthly payments. By paying once a year, I eliminate those extra costs and get a cheaper deal overall.