5 Ways to Save Money on Life Insurance

Life insurance can provide security for your loved ones and help protect them if something were to happen to you. It’s possible that a life insurance payment could cover remaining debts, burial costs and more — and that must seem expensive. While the cost of a premium may seem daunting, there are ways to make life insurance more affordable.

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What Factors Affect the Cost of Life Insurance?

Generally, there are quite a few factors that affect the cost of life insurance premiums. Factors such as age, gender, health history, hobbies and occupation have an impact on someone’s health that can therefore affect how much your life insurance policy may cost. Unfortunately, many of these factors are beyond our control. 

However, there are some factors you can control, like what type of policy you purchase and your current lifestyle choices. 

How to Get the Most Affordable Life Insurance Rates

While some factors are outside of our control, there are ways to have an inexpensive life insurance policy. The best way to have an affordable life insurance policy is to take the proper steps to ensure you are protected — whether that be getting the correct policy for your needs or changing some of your regular habits. 

1. Choose a Term Life Policy

Term life insurance is one of the most affordable types of life insurance, making it easier to provide protection for your family and loved ones. Term life insurance provides a sum if the insured passes away during a predetermined period of time, known as the “term.” The length of the policy can vary depending on the policy you choose. The death benefit of a term life policy can help your loved ones replace income, pay off mortgage or college tuition, etc. 

This type of life insurance offers a generally lower monthly premium compared to permanent life insurance. The main difference between the two is that a term life policy offers a death benefit, whereas a whole life policy accumulates a cash value over time that can provide an additional safety net. While it is more affordable to purchase a term life policy, you can convert your term policy to whole life insurance. 

1. Take the Medical Exam

Taking the medical exam usually helps prevent healthy people from overpaying for their life insurance coverage because it can help an insurer assess your current health status. The exam helps discover the risk of an applicant including family and health history, underlying medical conditions as well as life expectancy. If an insurer has the appropriate health information, it can help determine premium costs. 

Usually, healthy medical exam results lead to lower insurance rates because it is less likely that the insurance provider will have to pay out a life insurance claim. 

1. Buy a Policy Young

Your age is the top factor affecting your life insurance premium. Usually, you are likely healthier when you are younger, which may help a policyholder pay a lower premium. Younger policyholders pay lower premiums because it is less likely the insurance provider will have to pay out the policy. As you age, it is likely that your insurance premiums will increase. The older you get, the likelier it becomes your insurance provider will have to pay out a claim.  

1. Quit Smoking

One way you can save on your life insurance is to quit smoking. Smoking can cause fatal diseases like cancer, which means there is a higher chance of an insurance provider paying out a claim on someone who smokes. The health risks associated with smoking usually mean increased premiums. 

If you’ve quit smoking since purchasing life insurance, make sure to tell your provider to see if a nonsmoking status will lower your rate.

1. Bundle Your Policies and Pay Your Premiums Annually

By bundling your life insurance with other coverages, like home or auto insurance, you can save money based on how you pay. By paying your annual policy premium in one payment, you can get a life insurance discount and lower the overall cost than it would be by paying monthly. This is called the Paid in Full discount. Your Farm Bureau agent can give you a cost breakdown of how much you can save by using the paid in full discount for life insurance. 

We Can Help

Our life insurance calculator can help you determine what coverage you need across the types of life insurance we offer. Talk with your Farm Bureau agent about what is right for you and how you can save.