Cut the Costs of Term Life

You can lower your term life insurance estimates using the following strategies. Here are the most effective ways to minimize your term life insurance expenses.

1. Shop for coverage on the Internet. The Internet is the most competitive marketplace for all types of insurance, including term life. If you want the most affordable estimates on term life insurance, your best chance of finding them is to shop online. You can use a multiple-quote site like ours or visit individual insurers' sites for offers.
2. Buy through a group or organization. Clubs, associations, and professional organizations often offer their members group life insurance coverage for a discount. If you belong to a professional association, alumni association, or other group, investigate whether life insurance coverage is available to members.
3. Buy a homeowners or car insurance policy from the same company. Your can reduce your term life insurance estimates drastically by purchasing several types of coverage from the same carrier. Most companies that sell term life also offer home and auto policies, so consider bundling all of your policies with one carrier to qualify for the multiple-policy discount.
4. Lose weight. Life insurers determine your term life insurance rates in part by calculating your BMI, or body mass index. This is a ratio of your weight relative to your height. The higher your BMI, the higher your term life insurance estimates will be. Sometimes losing just 10-20 pounds can put you in a better rate class for life insurance, which could mean savings of up to 20%.

5. Start exercising. Not only will exercise help you lose weight for your life insurance medical exam, but it can also help lower your blood pressure and manage your cholesterol. Both blood pressure and cholesterol levels can impact your term life rates. If you begin an exercise program and make improvements to your weight, blood pressure, etc., consider retaking your life insurance medical exam for better rates.
6. Don't buy more coverage than you need. Keeping your coverage amounts reasonable will help you avoid overpaying for term life insurance. Don't shortchange yourself, but don't go overboard either. You want to leave your beneficiaries enough to pay off debts and maintain their current standard of living.
7. Ask about various payment options. Some insurers will lower your term life insurance estimates if you pay your premiums annually rather than monthly or quarterly. Paying your term life insurance premiums on a monthly basis may be more affordable in the short term, but your carrier might assess an extra fee for this convenience.