Life insurance is a very important type of insurance policy, and enables us to provide our loved ones with valuable financial security in the event that we die unexpectedly. Life insurance is designed to pay out a lump sum to the named beneficiary in the event that we die within the term of the policy (subject to exclusions and conditions), which gives our loved ones one less thing to worry about at an already stressful and upsetting time. There are different types of life insurance available, and a choice of levels of coverage depending on your needs and circumstances. The cost of life insurance can vary based on factors such as the level of coverage taken, your age, your medical history, your gender, and your lifestyle. There are certain factors that can really push up the cost of life insurance, and making some changes can help you to keep costs down considerably. There are a number of steps that you can take to try and keep life insurance premiums down: 1. Give up smoking. If you are a smoker you will be classed as a high risk customer to a life insurance policy, as the chances of contracting a life threatening disease, such as cancer, are vastly increased. By giving up smoking for at least twelve consecutive months you could enjoy a healthier lifestyle, save a fortune on the cost of cigarettes, increase your life expectancy, and reduce your life insurance premiums by a lot. 2. Improve your diet and exercise. Anyone that is seriously overweight will also be classed as an increased risk to life insurance companies, as this is a condition that can bring with it a number of serious and potentially life threatening problems, such as increased risk of heart attacks. By making improvements to your diet and stepping up the exercise you could start enjoying a better lifestyle and you could reduce the cost of your life insurance premiums. 3. Pay Premiums Annually. It may not be easy for everyone to produce a big wad of cash all at once. However, doing just that to pay your life insurance premiums could be your best bet if you want to save on the policy. Insurers can often tack on a service fee or offer a slightly higher premium when you pay monthly or quarterly. So to avoid those costly possibilities, you could opt for one annual payment instead.
4. Make sure you compare a number of policies. Cutting the cost of your insurance cover isn’t all about your personal circumstances and lifestyle. You also need to remember that the cost of coverage can vary widely from one insurance provider to another, so make sure you take the time to compare a number of policies and see which one offers the best value for money. 5. Choose the most affordable policy. The cost of your premiums will also vary based on the type and level of coverage that you take. For instance, term life insurance coverage will be cheaper than whole of life insurance coverage. Select your policy based on the amount that you can afford to spend on premiums, but do be careful not to underinsure, as you could otherwise end up paying premiums on something that your loved ones will not really benefit from ultimately.