Any plan to protect your family from financial hardship should include life insurance. While you may consider insurance premiums an unwanted expense, there are ways to pay less and still get the coverage you need. Here are six ways to reduce your life insurance premiums.
1. Quit smoking Smoking is a significant factor in the amount you need to pay for life insurance premiums. Smokers may pay anywhere from 40 per cent to almost double the premiums of non-smokers. To qualify as a non-smoker, you must abstain from cigarettes and other tobacco products, including nicotine patches and gum, for at least 12 months. If you lie to cover up your smoking, it could void your policy. 2. Live a healthier lifestyle There are other factors insurance companies use to calculate rates. Age, sex and family medical history are some. Another is your current health status. Maintaining a healthy lifestyle and warding off health issues such as high blood pressure and hypertension can go a long way when it comes to reducing your life insurance premiums. 3. Re-qualify instead of renewing If you already have a life insurance policy and it’s time to renew, it may be better to let your current policy end and apply for a new one. Insurance company’s mortality tables change over time, so if you’re healthy, you may qualify for better rates than what you’re paying now. 4. Combine policies Joint policies may be a cheaper option if you’re married or in a common-law relationship. There are two types of joint policies: a first-to-die policy pays the death benefit to the surviving spouse after the other dies, while a last-to-die policy pays out to an heir after both spouses die. Get a first-to-die policy if you have young children, a mortgage and other payments that’ll still need to be paid if one spouse dies. 5. Don’t be late Many insurance companies charge late penalties if you don’t pay your premiums on time. To avoid unnecessary fees, make sure to issue payments in a timely manner. 6. Shop around Visit an insurance broker to find out what your options are. Don’t choose a life insurance policy based on television commercials or recommendations from friends and family. Everyone has different priorities, lifestyles and budgets, so make sure you choose a policy that’s right for you. Life insurance experts in Nova Scotia At Eisenhauer Insurance Inc. we know that life insurance isn’t “one size fits all.” Our brokers are committed to helping you find the right life insurance coverage for your needs and your budget. We also offer living benefits insurance, home insurance and car insurance. Contact us today at one of our two offices in NS to speak to one of our brokers and get a free, no-obligation quote.