Policy Types

Finding Affordable Life Insurance

This article covers tips for saving money on life insurance, such as buying in multiples, adding a policy rider, adopting healthier habits and paying premiums annually rather than monthly.

Factors That Can Determine Life Insurance Rates

In a 2014 Insurance Barometer Study conducted by the Life Insurance and Marketing Research Association (LIMRA), 80 percent of Americans tend to overestimate the cost of life insurance.1

The fact is, life insurance premiums are based on many different factors. How much you’ll pay depends on your age, health, family medical history, occupation, etc. For example, someone who is age 25 with no health concerns will most likely find it easier to obtain affordable life insurance compared to an unhealthy 60 year-old.

If you’ve been putting off buying the life insurance you need due to cost, do some comparison shopping. Every insurer is different, and by getting several quotes from reputable life insurers you may be able to find just the right policy at the right price. And while you won’t ever have 100 percent control over what you’ll pay for your policy, there are some ways you may be able to lower your rates. Here are a few suggestions.

Compare rates by buying in multiples

Some insurers make life insurance more affordable if you buy in multiples of $250,000, $500,000, or even $1,000,000. Find out from the insurer what your rate is for every $1,000 worth of coverage and if it drops at all the closer you approach certain benefit levels. This may allow you to buy more coverage for less.

If you need more coverage, consider a policy rider

Life Insurance riders can add value to your life policy. For example, if in addition to your own policy you want a policy for your child, a child term rider will allow you to get affordable life insurance for your child as part of your policy (in lieu of purchasing a separate policy) for an additional premium.

Adopt healthier habits

Certain things such as smoking, chewing tobacco, and being overweight can substantially raise your rates. In fact, life insurance for smokers can be double compared to that of a nonsmoker. Finding affordable life insurance will be a lot easier if you adopt healthier habits.

Get it sooner rather than later

A big advantage to buying life insurance as soon as possible is that your premiums will be lower. Also, you never know if your health status may change. Getting a policy in place while you’re young and healthy allows you to “lock” into lower premiums.

Consider annual premiums

If you can swing it, try to pay for your life insurance annually vs. monthly. Many insurers offer a discount or can waive a processing fee if you pay for your premium a year in advance. Before you choose a payment plan, compare the single payment price to the total cost of the monthly payments.


1. http://www.lifehappens.org/blog/our-views-on-life-insurance-and-finances-in-tweetable-facts/


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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Affordable Life Insurance

Did you know that there are ways in which you can find affordable life insurance? This article has several suggestions for finding affordable life insurance to meet your individual needs and budget. For more information, visit our learning center.

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