If you have ever applied for life insurance before then you will already be aware that life insurers ask a lot of questions and even very personal questions. These questions though serve a purpose as the life insurer will use these answers to determine the risk they take by insuring you.
Your risk profile is based on your health and lifestyle, which will determine if you can be insured and if so, what premiums you will pay, what special conditions will apply to your policy and if there is a need for extra evaluations.
So, once you have applied and you have been insured, are you able to save on your life insurance?
If you already have a life insurance policy or if you are considering getting one so that your family is protected, then take a look at these tips that could help you to reduce your premiums.
How to Save on Life Insurance
Make Sure You Compare Life Insurance Quotes
As with any type of purchase, you will need to compare quotes and look at both the price and the cover that is offered. It does pay to do your homework, especially for life insurance. You should shop around and get at least three quotes from three different providers. This can easily be done through sites that allow you to fill out one application and gather a number of quotes from reputable life insurance companies on your behalf. You can then compare these and choose the one that suits your budget as well as your needs. Remember to compare both the policy benefits and features as well as the premiums.
Control Chronic Medical Conditions
The premiums that you pay for life insurance are based on risk and chronic conditions generally result in higher premiums. You could qualify for lower premiums though if you work with a healthcare provider to help you manage and monitor any chronic medical condition that you may have.
Time to Get Healthy
The healthy you are the lower your premium will be, as you are seen by the life insurer as a lesser risk. Making adjustments to your lifestyle could lower your life insurance premium. This can include things like stopping smoking, losing weight, exercise more and just to maintain a healthy lifestyle overall.
If you have made any of these lifestyle changes, then you should speak to your life insurer. If your overall health has improved then you may qualify for a lower premium.
Keep reading…for more ways to save…
The Right Amount of Cover for Your Family
Deciding on how much life insurance you need to buy requires some thought. You need to work out what you need and make sure that you are not buying too much.
Your life insurance policy should cover costs associated with your funeral, medical bills associated with your death, any debts that you leave behind and being able to settle your estate.
If you have a family, then you will also need to factor in your family’s yearly living expenses, education, medical aid, an emergency fund and other such things that your family may need when you pass away.
What are Your Employee Benefits?
Many employees will offer a life insurance scheme and if you are part of this as well as have a personal policy, then you might find that you can reduce your personal policy.
It is a good idea to speak to a financial planner to evaluate your requirements before you make any changes to your life insurance policies.
There is No Point in Lying
You should never withhold any information from your life insurance provider as this will not help you in the long run. If you fail to disclose all medical and personal information when you apply for life insurance then you risk having a reduced or rejected claim.
Life cover is a necessity and will protect you and the ones you leave behind after your death and make up for the loss of your monthly income. You should invest in a life insurance policy so that you can be sure that you do not leave your family in terrible financial circumstances and so you are able to protect them.