Tuesday, April 9, 2013

5 Tips to Get Lower Life Insurance Rates

It's a morbid subject when you attempt to think of life after you've gone. Put aside your misgivings and focus on where your family will be, though. The chances are they'll have to foot the bill for your funeral and any outstanding payments. Life insurance can stop them from having to deal with this whilst they grieve. A well-placed insurance policy can pay off the entire mortgage.

But getting lower rates isn't easy as it's all about risk. Even if you aren't eligible for the best rates around, there are some things you can do to lower the premiums.

1.Start Early

This sort of insurance is all about the risk of you dying. It's essentially the insurance company and you gambling on when you will depart this mortal coil. The more chance you have of dying in the next few years the higher your premiums. Obviously, you can't get rid of any serious health condition. What you can do is act now.

Act early and take out a policy when you're young. A healthy young person in their 20s or 30s with no pre-existing medical conditions will have far lower premiums than a chain-smoking alcoholic.

2. Consider Your Behavior

To lower your insurance premiums, you have to take into account your behaviors. If you enjoy skydiving, your premiums will go up as this is a risky activity. And if you came to work on a motorcycle this could also count against you.

You could simply cut some of the risky activities. Alternatively, some people would say you could just not tell your insurance company about them. Whilst it sounds like a good idea, it's dangerous because if you fall victim to a skydiving accident and the company didn't know you were skydiving they could refuse to pay out.

3. Good for Your Health

Life insurance premiums hinge mainly on your health at the time you take your policy out. You can change your health. If you walk into the insurer's office wheezing because of a chronic obesity issue, the insurer will up the premiums. Walking in chewing on a celery stick after a brisk walk will lower the premiums.

The point is you need to cut out some of the bad habits. Cut down on the drinking and stop smoking. These are all changeable life attributes entirely within your control.

4. Longer Policies

You can get a life insurance policy for the next few years or for the rest of your life. Longer policies naturally translate to lower premiums. (if you don’t cash them out) But balance this out against what your family will need if you happen to pass away.

A young person should always take out a long term policy. Someone in their mid-80s should opt for a shorter term policy, regardless, because a longer policy won't accumulate the funds needed to properly sustain their families.

5. Stay Simple

Avoid the added extras the insurer will inevitably offer. Added extras only apply in specialist situations or 'one in a million' situations. Whilst it might improve your peace of mind, the extra money in premiums will most certainly drain your bank balance unnecessarily.