Tips for Securing Affordable Life Insurance Rates - LifeQuotes.com

Tips for Securing Affordable Life Insurance Rates

If you have dependents and need life insurance, then you are likely to be paying premiums for years to come, which makes securing a low rate a huge advantage.

Below are some simple ways to help you secure the best possible rate for your ideal amount of life insurance coverage:

Start Early

Generally speaking, younger policyholders represent the lowest risk to insurance companies as they have a greater chance of paying premiums for a longer period of time due to their longevity.

Companies are more likely to offer lower rates if you sign up while you are still in your 20s or 30s.

Consider a Term Policy

There will forever be a debate between purchasing a term life insurance policy versus purchasing a whole life insurance policy.

Term life insurance offers coverage for a specific duration of time – generally five, 10, 15, 20 or 30 years – and offers a lower premium. Unlike term life, whole life insurance provides lifelong coverage and includes a savings, or cash value, component but these features come with a hefty price tag.

Opting for a less expensive term policy that can either be renewed for converted into a whole life insurance is generally your best bet, especially if you are young and just starting out.

Lead a Healthy, Active Lifestyle

In order to validate your current health status, most insurers will require a medical examination when you apply for a life insurance policy. If you are currently a few pounds overweight, it is advisable to diet prior to applying, as it could save you a sustainable amount of money.

Prior to the medical exam, your agent or insurance company should supply you with tips on how to prepare yourself.

Avoid Risky Habits or Occupations

If are an adrenaline-seeking junkie, you will most likely experience a hike in life insurance rates, as you are a greater risk for insurers. The same can said about hazardous professions – such as miner, construction worker or farmer.

Insurance companies are posing a risk with securing you and your hazardous lifestyle and/or profession, which means you will be faced with a higher premium to help offset this risk.

Do Not Smoke and Avoid Consuming Excessive Amounts of Alcohol

While this goes hand-in-hand with leading a healthy, active lifestyle, individuals who smoke or drink excessive amounts of alcohol will suffer from a higher life insurance premium. This is because the longevity of a smoker or alcoholic is considerably lower than someone who does not smoke and only drinks occasionally.

Strive for a Clean Driving Record

Much like auto insurance, the life insurance industry rewards people who have a safe driving record. If you have acquired a speeding ticket, DUI or other driving violations recently, you may experience a slight rate up, depending on the violation.

Shop Around

As with most buying decisions, it helps to compare multiples competitors against each other to secure the best deal that fits all of your needs. You do not necessarily need to talk with every company individually; you can consult with an independent agent or broker who sells different insurers.


Want to learn more about life insurance? Read our article The Most Frequently Asked Life Insurance Questions.

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