7 Quick Changes to Save on Life Insurance
Life insurance per se is not the most scintillating topic of all, but it gets more interesting the moment you mention the potential of saving hundreds on your payments every year. Naturally, every family prioritizes cutting costs, and if you want to do this yourself, implement the tips below to start saving today.
- Shop around every one or two years.
The pricing model for insurance companies changes over time, and so does your needs. One of the easiest and most reliable ways to save then is to shop your insurance with multiple reputable companies once or every couple of years. Look for one that meets your growing needs with great coverage at low rates. This simple act of shopping around regularly can potentially save you hundreds annually.
- Set a higher deductible.
This should be simple, but many people overlook it. How can filing a claim for $1,000 worth of damage be a good move when your deductible is only $500? Obviously, it is better to raise your deductible so that you protect yourself from claims that can raise your rates. Your best move here is to self-insure for small claims. Note that every time you make a claim, it can raise your insurance rates. This also plays a role in your ability to get coverage in the future.
- Get adequate coverage.
Going cut-rate on your life insurance may save you money today but it can cost you more tomorrow. Protect yourself and obtain adequate coverage now. Find out your needs and seek out a good provider that combines the best in coverage and premium. Most states have minimum coverage requirements. But it is best to set your limits based on your risk level. This way you are substantially covered in case of any accidents.
- Don’t pay extra every month.
The biggest savings on your life insurance comes when you pay it annually or bi-annually. Otherwise, it is like you are being nickeled and dimed. Insurers also charge different fees for different payment methods and you get the better value if you settle your premiums a year at a time.
- Chase all the discounts!
Review your policy and check with your insurer what sort of discounts you qualify for. This changes overtime so what was not available to you before may give you substantial savings now.
- Ask for holistic quotes.
There is a point in choosing one insurance company for all your needs. You often get bigger discounts this way, plus extra perks compared to having different providers for your life, home, car, and other insurance policies. The next time you are shopping around, ask for holistic quotes on all the coverages you need and look for the provider with the most reasonable overall premium.
- Grow your credit score.
Your credit score affects your premiums. Some insurers based their prices on your credit standing so the smartest way for you to save up on life insurance premium is to have a solid score. Of course, improving your credit score on its own is a good thing but enjoying lower premiums to go with it is certainly a wonderful bonus.