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Simple Tips to Lower the Cost of Life Insurance



Purchasing a life insurance policy is one important aspect of planning a successful financial future. No matter your age or life situation, life insurance can help pay for your final expenses and ensure your family is taken care of after you pass away. Before you assume life insurance is not in your budget, discover several ways you can save big money on your monthly premiums.


Purchase Term Life Insurance

Your agent will likely provide you with two options: term life insurance and whole life insurance. Whole life insurance, or cash value insurance, allows the policyholder to build equity and lasts for their entire life. Term life insurance is in effect for a certain number of years, such as 10 years or 20 years and pays only death benefits. Once the term is finished, you simply renew the life insurance and start paying your premiums again.

Term life insurance is less expensive, but you will not accrue equity value. However, the monthly savings are beneficial if you are younger or building your finances. As your financial situation improves and you can afford a higher premium, your agent can help transfer your term life insurance to a whole life insurance policy.



Get Healthy

Most life insurance companies offer a guaranteed policy. This means that no matter what your age, health, or if you have a pre-existing condition, you will receive the peace of mind that comes with a life insurance policy.

However, underwriters dictate insurance company rates. Underwriters consider several factors when determining how much a client pays for life insurance, including:

  • Gender

  • Age

  • Weight

  • Medical history

  • Lifestyle choices, including smoking

If you are young and healthy, ask for a policy that requires a medical examination. Individuals who are a healthy weight, don't smoke, and have a clean medical history will typically pay less on their insurance rates. Consider quitting smoking and losing weight before you sign up for life insurance if you cannot afford the premiums of a guaranteed policy.


Insurance companies will perform a rate reevaluation if you ask for one. During this reevaluation, they will consider any lifestyle changes when determining your yearly premiums, including if you lost weight, quit smoking, or are better at managing a chronic illness, such as diabetes.


You will be surprised at how much lower your costs will be if you make a few positive lifestyle changes.



Pay Your Insurance Bill Yearly

Your life insurance provider will allow you to pay your premiums on a monthly basis or a yearly basis. Some providers give the option of paying quarterly or bi-yearly. Typically, if you pay your premium on a yearly basis, you can save a substantial amount of money.



Consider Less-Known Ways of Saving

Ask your provider about other ways you can save on your policy, including bundling your life insurance, vehicle insurance, and homeowners insurance; going paperless; and drawing your premium directly from your bank account.



Shop Around for the Best Insurance Rates

Get several quotes from insurance companies to find the best price. Ask each provider about how you can save money on your premiums, what is in the policy, and how much coverage the company provides. Do your homework on each insurance provider as well. For example, look for a stable company with years of experience and mainly happy customers.

Remember, just because an insurance provider offers a lower rate doesn't mean the company is financially sound and will be around to pay out your benefits several years in the future.


No matter what your age, occupation, or situation in life, purchasing life insurance is an amazing way to protect you and your family's financial future. Contact the professionals at Gulf Coast Insurance.

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