6 Tips to Save Money on Term Life Insurance

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Cheap term life insurance ads often seem too good to be true. Is there really a way to get the best rate in term insurance? What's the secret?

The cheap term life insurance rates are real. And the ways to save money are fairly standard from one life insurance company to the next. Here are six tips to save money.

Tip 1: Save money on term life insurance rates with a medical exam

Cheap term life insurance rates require a medical exam. The logic is simple. Life insurance rates are based on your likelihood of dying. If a carrier doesn't know your health situation, they average the risk among everyone. You pay the same as someone with poor health. It's a one-size-fits-all approach, which is likely to cost you more.

If you have good health, the carrier may be able to place you in a better rate class with affordable term life insurance rates. This is one of the easiest things you can do to save money. Get the exam!

 

Tip 2: Save money by comparing life insurance rates

Getting affordable term life insurance is similar to shopping for many things. For the best rate, do an apples-to-apples comparison. Comparing also ensures you don't unintentionally sacrifice something. The goal is to get the most for your money, and avoid getting a cheap term life insurance policy that skimps somehow.

Areas to compare:

  • Coverage amount. This is the amount your beneficiaries will receive.
  • Life insurance term. This is how long you will be covered.
  • Level term life insurance. This means the premium stays the same for the entire term. With some term insurance policies, the premium goes up.

Many companies, Matrix Direct included, will do the apples-to-apples comparison of life insurance rates for you.

Tip 3: Save money by not using tobacco

Cheap term life insurance rates go to people who do not use tobacco. This is pretty much a given. Tobacco usage increases your risk of premature death, pure and simple. Tobacco usage doesn't mean that you can't get insured, or can't get affordable term life insurance. It just means you aren't as likely to get the cheapest term life insurance.

Keep in mind:

  • Life insurance carriers have different criteria to define nonsmoker or non-tobacco user. If you quit years ago, this can make a difference.
  • Always be truthful. Do not say you are a non-smoker or non- tobacco user if you still use tobacco.
  • Don't delay getting term insurance rates because you use tobacco or plan to quit. Protect your loved ones first. You can always quit using tobacco and then contact your term insurance carrier to apply for rate reconsideration.

Tip 4: Save money by not having a history of drug or alcohol abuse.

Similar to tobacco usage, a history of drug or alcohol abuse can mean a person won't qualify for the cheap term life insurance rates. It doesn't necessarily mean being denied coverage.

Tip 5: Save money by reviewing your term life insurance

Getting a policy might seem like the final step, but there's always a chance you can save money with a periodic review. Life insurance, term life policies in particular, are at some of the lowest prices in decades.

Consider these questions:

  • Is it possible you are paying "yesteryear's" term life insurance rates?  
  • Have you had a positive change in health, such as losing weight?
  • Have you lowered your cholesterol and/or blood pressure?
  • Did you quit smoking?
  • Have your life insurance needs changed? For example, did you pay off your home or did your children graduate from college?

Tip 6: Save money by customizing your life insurance term.

One little-known way to save money on term life insurance rates is to tailor the number of years in the life insurance term. If you don't need a standard term, such as 25 or 30 years, inquire about what you need, such as 22 years. This pay-for-what-you-need approach can work well for those wanting to protect their loved ones through a milestone such as college or paying off a mortgage.

Many variables factor into affordable term life insurance rates. The best way to learn how you can save money is to talk to an agent.

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