How to Save on Insurance Premiums

Life insurance is essential, but it doesn't have to break the bank. Insurance companies use a variety of factors to determine your risk level and calculate your premium. By understanding these factors, you can take steps to lower your costs.

1. Quit Smoking

Smokers pay significantly higher premiums—often double or triple what non-smokers pay. If you quit smoking for at least 12 months, you can apply to have your premiums reduced to non-smoker rates.

2. Improve Your Health

Your BMI, blood pressure, and cholesterol levels all impact your rate. Adopting a healthier lifestyle through diet and exercise can lead to better health markers and lower potential premiums.

3. Buy Early

Life insurance gets more expensive as you age. Locking in a term policy when you are young and healthy is the best way to secure a low rate for decades.

4. Pay Annually

Most insurance companies offer a discount (usually around 2-8%) if you pay your premium annually instead of monthly. This reduces their administrative costs, and they pass the savings on to you.

5. Bundle Policies

While less common with life insurance than auto/home, some insurers offer multi-policy discounts. Ask your advisor if there are any bundling opportunities available.

6. Review Your Coverage Needs

Don't buy more insurance than you need. A needs analysis calculator can help you determine the right amount of coverage for your specific situation, preventing you from overpaying.

7. Choose Term over Whole Life

For most families, term life insurance provides sufficient protection at a fraction of the cost of whole life insurance. Unless you have specific estate planning needs, stick to term.

8. Compare Quotes

Rates can vary significantly between insurance carriers. Use an online brokerage like EverLife to compare quotes from multiple top-rated insurers instantly.