If you are searching for the best deal on life insurance, then there are a few things you should know.
If you follow all five steps, you should be able to save thousands of dollars on life insurance.
1. Work with an Agent that Understands Your Health
One of the most common reasons you will pay more for life insurance is because of your medical history. Common conditions such as asthma, anxiety, high blood pressure, and being overweight can increase your rates. If you have a medical condition, make sure you work with an agent who will take the time to find you the best rate. The more information you can provide your agent about your health, the more likely you will receive a great rate. Working with the wrong agent can cost you thousands of dollars.
2. Compare Rates with an Independent Agent
Rates are determined by factors such as: your age, health, lifestyle, and how long you want coverage. Some companies have great rates for young people, some companies have great rates for people with a health condition, some companies have great rates for longer term policies, your unique situation will determine which company has the best rate for you.
Comparing rates from several companies will almost always be less than working with one company. The good news is that if you work with an independent agent, the agent can compare rates with the top companies like MetLife, Prudential, AIG, and Transamerica and give you a recommendation on the best company for you. If you want to see instant rates from several life insurance companies online, you can compare rates here.
3. Ladder Your Coverage –
When you buy a life insurance policy, you may want to replace your income for the next 20, 30, even 40 years. You may want to pay off a mortgage or other debt. It is possible that the amount of life insurance you need will decrease over time (as your savings increase).
Laddering is when you buy more than one life insurance policy for different lengths of time. You may decide to buy separate policies to meet your needs.
Let’s take a look at a 35-year-old man in good health. He wants to replace his income for the next 30 years. His annual income is $50,000, and he is considering a $1,500,000, 30-year term policy that will cost $1,433 a year. He can alternatively buy a $500,000 10 year term, a $500,000 20 year term, and a $500,000 30 year term and meet his same goals of protecting his income for the next 30 years. The cost of the laddered policies would be $997 saving him 30%.
The disadvantage of laddering is that your coverage will reduce overtime.
4. Skip Life Insurance at Work –
If you are in good health, then you will probably be better off saying “no” to life insurance at work. If you plan on buying a 20 or 30-year term policy, you can save as much as 78% on life insurance by buying directly from an agent instead of your employer. To learn more about your life insurance coverage at work you can read our article “3 Reason You Are Overpaying for Life Insurance at Work.”
Make sure to accept any free coverage your employer gives you. This often is a fixed amount like $50,000 or possibly equal to your annual salary.
5. Pay Annually –
It doesn’t get any easier to save on term life insurance than by paying once a year. Your discount will depend on the insurance company you choose and can save you as much as 10%. When you are getting quotes, make sure to ask your agent about the paid in full discount.
Get Started Today
There has never been a better time to buy life insurance. If you want to take advantage of the savings discussed in this article give Brown Insurance Agency a call today at 520-888-6900 or get started online here.