Sunday, April 8, 2012

How to Save Money with Life Insurance

This is a guest post by Lynette Argent at Million Dollar Woman, Million Dollar Woman offers both Life Insurance and Death Insurance all designed to meet the unique needs of women. I'm happy to share this article with you on life insurance because honestly, life insurance is something I know nothing about, but I've been strongly considering getting some, because I think it is smartest...

Life insurance is a financial product that more and more Australians are waking up to. Its importance to the well-being of our loved ones and those who rely on us financially cannot be overstated. Therefore the market for life insurance is hugely competitive, with a large number of products available for consumers to choose from. Anyone considering life insurance should closely study all the options available in order to make an informed choice. With a bit of investigation up-front, life insurance doesn't have to be as costly as many people think it is. Here are a number of ways to save money with life insurance.

Live as healthy a life as possible  

If you take out car insurance, the cost of your premium will be dictated by how many crashes you have had. Similarly if you take out life insurance, the premiums will be higher if you are in poor health or if you have a history of poor health. Therefore, the most obvious way to keep life insurance costs down must be to keep up a healthy lifestyle and keep the need for a life insurance pay-out as unlikely as possible. This means eating well, exercising regularly, not smoking and generally looking after yourself.

Don't take out more than you need  

Don’t take out insurance products you do not necessarily need. Make sure you have a good gauge of the financial support your family would require if you were no longer around, and cater your life insurance needs with that in mind.

Read the small-print and check the terms  

Analyse the terms and conditions as closely as possible for any additional costs and charges.. For example, some insurers  may charge to pay your insurance premium more frequently, e.g. fortnightly, monthly, quarterly or whatever.

Job benefits  

It’s possible you may be eligible for life insurance, possibly at very competitive rates, through your employer. It is certainly worth investigating this avenue before throwing your lot in with a major insurance company.

Buy young  

It makes sense that the cost of life insurance will be lower when you are younger – when the likelihood of your death is small, or a long way into the future. It's possible you might even outlive your policy.

Shop around  

This may seem obvious but it is an essential step in finding a life insurance deal. Do as much research as you possibly can, perhaps using your own broker or simply online comparison sites. Also look out for 'bundles' offered by insurance companies, where  car, house and travel insurance, for example, are included in one big deal that also includes life insurance. Some serious savings can be made this way too.

See my disclaimer.

Do you have life insurance? How much do you pay for your life insurance? Were there any steps you took to make your life insurance policy more frugal? If you don't have life insurance, why not?

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