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4 Easy Ways to Save Money on Life Insurance

4 minute read

By Heather Fishel

Many people overlook or ignore life insurance because they think it’s both expensive and unnecessary. However, while no one wants to think about the end of their life, life insurance can be a critical insurance policy. There are many reasons to get life insurance – and financial protection for your loved ones is one of the most important. You can find life insurance policies easily with a search online.

If you’re worried about the cost of life insurance, you need to know there are ways to save. You can find affordable life insurance premiums, or lower your current premium, with a few tips. And you can search online for cheap life insurance right now. / Shutterstock

Here are four ways you can save money on a life insurance policy.

1. Reconsider the Type of Life Insurance You’re Carrying

The type of life insurance you choose plays a big role in determining your costs. More expensive policies, which often come with extensive coverage, lead to more expensive premiums.

Take a look at the type of life insurance you currently have, or compare different types if you don’t have a policy yet. Is there a cheaper option? Is there another kind of policy that offers the same benefits or coverage for less?

Typically, term life insurance is the most affordable option¹. Compared to permanent or whole life insurance, term life insurance is more basic and has an expiration date. Term life insurance covers you for a term, or a set length of time, and has both a fixed death benefit and a fixed premium. Switching to a term life insurance policy with $500,000 in coverage could cost you as little as $454 for the entire year².

2. Make Health and Lifestyle Changes

Life insurance gets more expensive as you get older – and the costs also increase if your health worsens. Individuals who are in good health see cheaper life insurance premiums, and it’s often easier to qualify for a policy in the first place. Insurance companies consider unhealthy individuals higher risk and charge higher prices as a result.

However, if you’re paying high premiums because of your health, you can make changes. You can get healthier with lifestyle and habit changes. And if your health improves, you can get life insurance at a lower cost.

Some of the biggest health factors that affect your life insurance cost include³:

You can take steps to change these factors. If you aren’t at a health weight, you can consider options like dieting, getting regular exercise, or working with a nutritionist. If you’re a smoker, you can work to quit the habit. Have a pre-existing condition? You can work with your doctor to ensure it’s well-controlled. Regular follow-ups, consistent medication, and other signs of working on your condition can be positive steps in the eyes of a life insurance company⁴.

3. Eliminate Extra Coverage and Fees You Don’t Need

Life insurance can be complex and convoluted. However, it’s important to understand exactly what’s included in your policy. Otherwise, you might wind up paying a higher premium without even realizing your costs could be lower.

As you shop for and compare different life insurance policies, make sure to check all of the details of your policy. You shouldn’t have to pay for extras you don’t want – and there shouldn’t be any unnecessary or hidden fees. You should also go over your current life insurance policy with a fine-tooth comb, looking for any extra coverage, hidden fees, or other items you didn’t realize you were paying for.

The following are some of the common extras, or types of additional coverage, that you probably don’t need to pay more for⁵:

These extras are often thrown into policies during the sales process. However, most people don’t need them and never use them – meaning you likely don’t need to spend extra money to have them⁶.

4. Shop Around and Compare Insurers Online

The best way to tell if you’re paying too much for your life insurance policy is to search online. With a single search, you can browse and compare different insurance options from multiple insurance companies. You can compare everything from the type of insurance to quotes on the monthly or yearly premiums.

Shopping around online is also a good idea if you already have a life insurance policy. You should search and request quotes online to see if you’re paying a fair price. Other insurance companies may offer the same coverage at a lower price – and you may be able to save by switching.

Searching online is quick, easy, and efficient. And it could help you ensure you’re paying an affordable, reasonable price for a life insurance policy that protects your loved ones.

Heather Fishel



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