Saving Money on Life Insurance

Get Several Life Insurance Quotes

Chances are that you know someone who has life insurance, and who loves their agent and just knows that they can get you the best deal on the block. Before you decided to throw in your lot with the same agent, call around for some different life insurance quotes. Start with any insurance companies you already have other kinds of insurance with to see if they offer any discounts for having multiple types of insurance. Then just work your way down the phone book, calling several different agencies offering life insurance.

Once you have a good list of possible life insurance providers, narrow your choices down to a few and ask for the details of each, including the "net cost index", which is a standard way of calculating just how much you'll be paying over your lifetime.

Pay For Life Insurance For a Year at a Time

Typically life insurance companies will give you the option of paying for insurance on a monthly, quarterly, bi-yearly or yearly basis. Like car insurance, your premiums are usually less expensive if you buy for longer periods of time at once. Often, the amount you save by paying for a year of life insurance at a time is a better return than you would get investing the extra cash in a pretty good mutual fund.

Find Out if You Qualify for Group Life Insurance

Your employer may offer group life insurance through through the company you work for. If this is the case, you can usually get a better rate than if you purchased an individual life insurance plan. Employers will often subsidize the life insurance plan, making it more accessible to their employees. Since they can usually get the plans for a group-discounted rate, the savings can be pretty high for the individual.

However, it's still important to do your homework. Look into individual life insurance plans as well. If you find that you have some comparable options, it might be best to go with an individual plan. If for some reason you lose your job or change jobs, you may end up with a lapse in life insurance coverage in the move if you are on a group plan.

Ask About Discounts for Life Insurance Amounts

Often, life insurance companies will offer discounts for at certain benefit amounts. Because of this, it is possible to pay more in life insurance premiums for a lesser amount if you are close to the discount point. If, for instance, there is a discount for $300,000 policies, and your current policy is for $250,000, you may actually pay less for your premium by bumping your benefits up to the discounted amount.