Saving Money on Life Insurance

Yes, there are ways to save money on life insurance!  Even though the same things that make it easy to save on other types of insurance like higher deductibles don’t work here, there are things you can do to make your life insurance premiums lower.  Then you can keep those dollars in your pocket to enjoy life now.

For starters, buy the right kind of life insurance.  If you need a lot of coverage now, but won’t once the kids are grown or the mortgage is paid off, choose a large term life insurance policy to cover the these short-term needs.  Term life insurance is much less expensive than whole life because the entire premium is used to purchase coverage; no cash value is built up over the years.

Now this isn’t a contradiction, but consider buying a small whole life insurance policy at the same time.  Purchasing it while you are young and healthy will make your rates much lower.  If you wait until you are older, it will be much more expensive and, based on your health or age, may not even be available.  The policy will build a small cash value over the years (do not consider it a savings account!), and ensure that even in your golden years, you have affordable life insurance coverage.