How to get the best deal on term life insurance
When shopping, you have to be a bit savvy to look for the best deals. When you go to the grocery, you can make use of discount coupons to whittle away a bit from your total food expenses. When you buy clothes, you can look into discount shops to get cheaper clothes without compromising the quality of these clothes.
The same goes for buying term life insurance. You should take note of how you can make the most of the opportunities given the features available in a term life insurance policy.
Here are some ways that can help you save up when you buy term life insurance:
Just don’t!
Premium savings strategy that just might backfire:
- Don’t lie. Misrepresenting the facts in your application can mean that your beneficiaries’ claim is denied.
- Don’t settle for less. Don’t buy term life cover with a Sum insured that is lower than what you know your family needs. (Read How much life cover do I need to know the right amount for your needs.)
- Term life insurance is best bought at a young age.
Actually, all life insurance products are best bought at a young age, because the probability of dying at a young age is smaller than the probability of dying at an older age.
- Research, research, research!
It is best to know the different types of term life insurance (and other life insurance) products out there for you to make the best choice for your particular situation. You should also ask the advice of your insurance agent to help you come up with the best package for your specific needs.
You can also ask quotes from various companies – term life insurance is very simple to compare – you will only be looking at the premium rates for the standard term life cover. You don’t need to study cash values – since these don’t apply for term life policies.
- If you can, get a convertible term life policy.
This enables you to buy coverage at an affordable price and still have the option to convert into a permanent policy when you can afford it more. This can be done without any penalties or changes in your premium ratings. It will come out cheaper to get a convertible policy than to buy a new permanent insurance product in the future.
- Go online.
If you already know what policy will suit you best, we suggest that you shop around the online markets. Insurance sold online may be cheaper than one bought with the help of an agent. Learn more about how to successfully buy term life insurance online.
- Look for simplified term insurance policies that don’t require much
underwriting.
There are term life insurance policies that don’t need much by way of underwriting – some of this can be found online. All you need to do is to answer the questionnaire honestly.
- Live a healthy lifestyle.
Those who don’t smoke and are not overweight will have considerably cheaper premiums than smokers and overweight applicants. Kicking the smoking habit will actually lower your premiums by as much as 50%! Know more about smoking and term life cover.
- Lower alcohol intake.
This means fewer happy hours for you! Drinking is considered a health and lifestyle risk. For those who have pre-existing conditions (such as heart disease, angina, diabetes mellitus, stroke, etc.), alcohol intake is a negative factor which can lead to a heavy premium rating or a denial of one’s term life insurance application. It is increases the risks of meeting an accident.
- Improve your driving skills.
Believe it or not, your driving habits have a direct relation to your insurance rates. Insurance companies look at your driving record as an indicator of your propensity for risk. DUIs, speeding violations and other driving no-nos show that you are not as careful with your life.
- Don’t overinsure.
Avoid the temptation of buying more insurance than you actually need. Also, check if you have other sources of cover. You may not know it but if you are employed, you may already have life insurance cover. You should ask your HR department about this. More often than not, the coverage may not be as complete as you want. But if you already know how much you are covered at work, you only need to buy the amount of cover that will raise your insured amount to the level that you consider adequate for your needs.
- Get a joint life policy.
If you need cover for both spouses, get a joint life policy instead of two separate life insurance policies to save on premiums.
Updated on: 05.06.2013
To secure your family's future, fill in the form on the right and get your term life insurance quote now.