28 Ways to Save Money

on Life Insurance

Purchase Term Insurance

Term insurance covers your life only during a predetermined period of time and after the

policy expires you cannot collect anything. It’s good for individuals with financial burdens that will go away over time like the mortgage on a house or raising children into adulthood. BE CAREFUL: If you don’t die before the policy

expires, you’ll be left with nothing. There are other options which cost more but come with additional benefits. Make sure to speak with a licensed life insurance salesperson in your state

before deciding term insurance is the only option for you. HERE

Lose Weight

Due to the increased likelihood of diseases like diabetes, overweight individuals pay significantly

more for their life insurance. Some scientific studies even link weight loss with increased

energy and improved health so there may be more benefits than life insurance costs! BE

CAREFUL: Don’t let the fact that you’re trying to lose weight stop you from buying life insurance right now. If you lose weight in the future your insurer may reconsider your premiums, or you

can just write a new policy considering your new weight.

Shop Around

Despite what they want you to believe, no life insurance carrier will have the cheapest price for everyone. Since they base their rates on different

factors to varying degrees the only way to truly find the best is to speak with many providers. The

quickest, easiest, and safest way to speak with many carriers is to contact Champagne Agency. BE CAREFUL: The internet is littered with websites claiming to offer

multiple life insurance quotes by simply entering in your information once. These website make money by selling your information to anyone willing to pay for it.

I’m not sure I’d want my personal information being bought and sold online, but it’s your call.

Buy Today, Not Tomorrow

One of the biggest reasons people pay too much for life insurance is because they failed to buy it before they needed it. Young people

in good health never think they need life insurance and unfortunately many wait until receiving bad news from the doctor to try to get it. That’s too late. If you don’t think you need life insurance today, that’s exactly why

you should buy it. Today you’re healthy, tomorrow is anyone’s guess. Buy life

insurance.

Stop smoking

Of course being a smoker will cause your life insurance premiums to skyrocket, but did you know an occasional cigar can also raise your

rates? Because insurance companies are accustomed to individuals underestimating

tobacco usage, if you admit to even an occasional puff on a cigar, you’ll likely see a much larger premium. Make sure if you tell

them you never smoke that there isn’t a trace of evidence to the contrary when you submit a

urine and blood sample!

Stay Away From “Guaranteed Issue”

Guaranteed issue policies may sound appealing to anyone with medical conditions, but it generally means a very small amount of

coverage relative to the cost and could also result in a denied claim after your death. Since

you won’t be around to fight, you might be better off with an insurer who gives a medical exam and knows about your conditions prior

to accepting your premiums.

Be careful on Getting Quotes Online

There are many websites on the internet that claim to offer several competing insurance

quotes simply by filling out one form. Most of these work the same way: they take your

information and sell it to as many people as are willing to pay for it. This means a barrage of sales calls indefinitely and even worse, your information being resold to anyone willing to

buy it. Scared? You should be.

Prepare For Your Medical Exam

Nearly every life insurer requires some form of medical check to underwrite life insurance policies. Make sure you score well on yours by not smoking

cigars or drinking alcohol beforehand, fasting for the required amount of time, and absolutely do not fail

the drug test. A failed drug test for life insurance could remain on your record even if you go to other companies. BE CAREFUL: Some companies advertise

life insurance without a medical checkup. They generally afford to do this by assuming you have

poor health and charging accordingly. Unless you have very serious medical issues, submit to a medical

exam for the best coverage and rates.

Buy Even Amounts of Coverage

While many life insurers will allow you to buy coverage in smaller increments, you can

generally get the best prices by purchasing a round amount of coverage like $500,000 or

$1,000,000. For example, although you may be able to purchase $240,000 in coverage

there will likely be a price break at $250,000. Make sure to ask your licensed sales agent

about available discounts by purchasing larger coverage amounts.

Seek Specialized Insurance Companies

For individuals with certain medical conditions, finding a life insurer that specializes in

coverage for individuals with your circumstances could be cheaper. For example, if you have a very mild form of diabetes, you may fall into a general category of diabetic with a major insurance carrier. A company

specializing in diabetic clients may be better able to identify how non-life-threatening your

condition is and give a cheaper rate accordingly.

Lower Your Blood Pressure

Most life insurance carriers will require a blood pressure test to accompany the

insurance application. So in addition to regular exercise, healthy eating, and

moderate alcohol consumption, make sure you’re in a relaxed state of mind

while the insurance company is conducting their physical.

Don’t Buy From Your Employer

Although not always the case, generally employer provided life insurance is not a great deal for individuals with average or

better than average health. Since employer provided coverage does not

usually include a medical exam, it is underwritten based on poor health, which

means high premiums for you.

Be Honest About Your Health

Although life insurance companies don’t usually need to know about the flu you had in 8th grade, if there is any medical information that could be even remotely relevant to your health you need to tell them about it. If you die for a reason that is in any way related to something you fudged on your application,

your claim could be denied. The worst part: you won’t be around to do anything about it.

You’re not saving money by lying on an application if you’re buying insurance that

won’t pay a claim!

Keep Good Medical Records

For lack of better information, a life insurance company will always assume

the worst. If you’ve had a major illness or disease in the past, make sure you have

adequate records to prove you recovered fully and the chance of remission are low.

Buy Only What Your Family Needs

This is a slideshow about saving on life insurance, so I have to mention that buying

less coverage is cheaper even though I rarely ever recommend it. Take time with a licensed life insurance professional to conduct a need analysis. You’ll probably find your previous need assumptions were on the low side. BE CAREFUL: Life insurance needs change over time so be sure to review your needs on an

annual basis.

Consider a Rider Instead of a New Policy

Individual life insurance needs change over time, but that does not mean you always need to purchase a new policy. Some carriers and policies allow riders that can add additional

coverage to an in-force policy so you can expand your coverage without sacrificing any

generated cash value. BE CAREFUL – Some unscrupulous life insurance salespeople may

recommend a new policy instead of a rider for increased commissions. Make sure to ask lots

of questions about alternatives to a new policy.

Pay Annually

Each life insurance carrier has different pricing options based on your payment

frequency, but there is generally a discount for paying up front. Ask your life insurer which payment structure provides

the cheapest annual premium and pay that way.

Reduce Your Cholesterol

Again, being in good health will substantially improve both your insurability for life

insurance as well as the rates you pay for it. If your cholesterol is on the high side, speak

with your doctor to find out how you can improve your score. If you do have a

significant change, contact your agent to see if you’ll qualify for a new policy rating.

Ask For a Reevaluation

Has your risk of dying changed based on a health, occupation, or marital status change? Reach out to your current life

insurer to see if they can reevaluate your coverage premium.

Speak to Several Life Insurance Professionals

In addition to getting many quotes, there is an additional benefit to speaking with many

licensed life insurance professionals: knowledge. Life insurance can be very

complicated and some professionals can be much more creative and knowledgeable than others. Make sure to pick the brain of each

person to find out if there may be better options for your coverage than you had

considered.

Don’t Let Your Policy Lapse

For some types of insurance policies, carriers determine rates based on the assumption that most customers will miss a payment and the

policy will cancel before the policy even expires. If your policy lapses, you’ll need to

submit to a new medical exam and based on the simple fact that you’re older, your

premiums will likely be higher. It’s another reason to set your policy up with automatic

billing.

Convert Your Policy at the Right Time

Throughout the life of an insurance policy, there are many opportunities to convert the “type” of policy and other options with the

policy. The only way to know all your options is to openly discuss them with a licensed representative of the insurance

carrier annually.

Pay by Direct Debit

Since taking money directly out of your checking account electronically is usually the cheapest option for the life insurance company, they’ll often provide a discount

for doing so. Ask your agent if direct debiting from your bank account will help

save money.

Don’t Get a Half Year Older

Many insurance companies base premium rates on your half-year age, not your actual

age. This means while you may not have gotten another year older between 22 and 23, your insurance premiums could go up

halfway between the two. It’s another reason not to delay the insurance

purchasing decision.

Buy Term Coverage For the Right Time Period

When purchasing term insurance, the policy period chosen is often made based on how long

the money will be needed for. While someone in their 20’s or 30’s with young children may only

need a 20 year policy, the same person with a 30 year mortgage may want to consider a longer length policy. BE CAREFUL: Just because your

children may be in their 20’s and your spouse will be approaching retirement, doesn’t mean there won’t be a financial burden associated with your passing. Remember that life insurance is a gift

from you, not for you.

Choose a Company For Your Lifestyle

If you participate in hobbies life insurers might consider dangerous like skydiving, bungee

jumping, mountain climbing, paragliding and such, choosing the right life insurance company is

even more important. Each company views potentially dangerous activities in a different way.

Company A may charge more for paragliding scuba divers while Company B charges more for

hang-gliding race car drivers. If you’re involved in any type of activity some may consider life-

endangering, it’s even more important to speak with many insurers.

Change Your Occupation

Although a career change based on saving money on insurance might not be a possibility for you, switching to a non-risk occupation can reduce your premiums and may prevent you

from being un-insurable. If you have changed jobs since the time your insurance policy was

issued and your current position is much safer, consider reaching out to your insurance carrier

for a possible reevaluation.

Visit Champagne Agency LLC

There is no easier or more effective way to communicate with and get quotes from

the most popular life insurance companies without sacrificing the security

of your personal information than by using our agency.

Champagne Agency LLC

www.ChampagneTeam.com (734) 282-8700