How to Reduce the Cost of Life Insurance

how to reduce the cost of life insurance

It doesn't matter if you are a man or a woman, if you have a family that depends on you financially, then life insurance is an absolute necessity in order to make sure your family is financially secure in the event of your death. If you do not already have it, what’s stopping you? The high cost of life insurance? Life insurance can be expensive, but it doesn’t have to be. Here are some ways that you can reduce the cost of your life insurance and still ensure that your family is well taken care of.

quit smoking

Stop Smoking If You Are A Smoker

Smoking can increase the cost of your insurance by about 25% to 50%. After you stop smoking and if you are smoke free for a year, you may be able to lower your existing life insurance premium by getting rid of the extra rating which reduces your premium.

Do Some Comparison Shopping

All insurance companies will have different underwriting policies for different health conditions. Things like high blood pressure that is under control can cost more with some companies but not with others.

Provide the same information about your health to several insurance companies so that you get accurate estimates that you can compare side by side to see how to cut costs.

Related: 5 Money Management Tips to Help You Plan For Your Future

Try To Stay At Your Ideal Weight

stay at your ideal weightIf you are at a healthy weight for your age and gender, you can reduce the cost of life insurance.

All insurance companies underwrite excess weight in different ways.

There is definitely going to be an extra charge if you are severely overweight, though. Request the rating chart for how insurance companies underwrite weight.

See how close you are to a lower price category with regard to your weight. If you can lose a few pounds and save a lot of money, do so immediately, and then reapply to get your life insurance company to reduce their price.

Look At Other Factors Besides Cost

Some of the cheaper policies can cost more in the long term. Always deal with reputable insurance companies, even though they may cost more.

You see, if you choose a low cost life insurance company, you run the risk of them closing down and leaving you without any insurance. All the money you paid into the insurance policy could be lost if you choose a company that is not stable and that is at risk of shutting down.

The tips above can help you cut life insurance costs and save money while avoiding risk. Live a healthy life, do some comparison shopping, and choose a stable life insurance company with a good reputation. That way, your family will be protected financially for the future.


    • Natalie @ Financegirl

      Natalie @ Financegirl 06/18/2014 6:58 a.m. #

      I never thought about weight and how it affects life insurance! That's good to know if I'm every helping someone who really could get healthier by losing weight. Thanks!

      • Sicorra

        Sicorra 06/19/2014 2:48 p.m. #

        Because life insurance folks only want to help you if you are healthy they use weight as one of their many criteria for judging your health and longevity. So the healthier you are the less you pay now.

    • Stephanie

      Stephanie 06/18/2014 12:51 p.m. #

      I'm so glad you posted these tips, Sicorra! Life insurance is something I've been seriously considering. I will keep these tips for reference when I start shopping around! Thanks for sharing!

      • Sicorra

        Sicorra 06/19/2014 2:50 p.m. #

        Thanks Stephanie! Hope you are able to acquire your life insurance soon. Too many sad stories out there about people who thought they had plenty of time and then something tragic happens and the family is left broke. Good luck with finding the right plan!

    • Tanya @ Eat Laugh Purr

      Tanya @ Eat Laugh Purr 06/18/2014 12:53 p.m. #

      Great tips, Sicorra! I never thought about weight either and how it could affect your insurance rate. But it makes sense when you think about it as obesity certainly impacts your health. Another reason to get in shape! Happy Hump Day, my friend!

      • Sicorra

        Sicorra 06/19/2014 2:52 p.m. #

        Yes, weight is a factor for sure. Our life insurance comes up for renewal next year, so I have about 6 months to lose a bit before then if I want to save money ;-)

    • Uplifting Families

      Uplifting Families 06/18/2014 2 p.m. #

      Great tips and suggestion, I am glad I got my insurance policy several years ago.

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