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How You Can Reduce Your Life Insurance Premium
Posted By Ron On November 3, 2010 @ 8:35 AM In Budgets,Insurance,Saving Money | Comments Disabled
Your life insurance premium is generally determined primarily by three factors:
Though two of the three main factors affecting your life insurance  premium (age and family medical history) are beyond your control, there are steps you can take regarding that third factor – lifestyle. There are some other ways to reduce your premiums as well and give your budget  a break.
Non-smokers generally live longer, meaning the life insurance  company will have more years to collect your premium payments before coughing up the death benefit for your beneficiary.
Weight loss often means lower cholesterol levels, lower blood pressure, and lower risk of developing chronic diseases like diabetes. All of these improvements to your health can make you a better insurance risk. Sweet!
Insurance companies can jack up your premium if you have multiple moving violations. Those speeding tickets can come back to haunt more than just your car insurance  premiums.
Alcohol consumption can pose a potential health risk. Drinking less alcohol – or stopping entirely – lessens the risk for the company and you’ll likely be rewarded with a lower premium. Life insurance  companies will probably check not only your application, but your driving record, and your medical records to get an idea of your drinking habits.
You may be able to get similar or better coverage for less money. Companies like AccuQuote  can shop multiple insurers for you to get the best possible price.
Depending on your age and how long you expect to need life insurance  coverage, you may want to consider switching to a term policy, but NEVER, EVER cancel an existing policy until your new policy is in effect. NEVER NEVER NEVER.
Riders are optional policy provisions that pay additional money to your beneficiaries. Types of riders include:
These life insurance  policies are often less expensive because agents are paid a flat fee rather than a steep commission.
You may get a discount for paying your bill in full (annually) rather than paying monthly – and yes, that’s a big bill to pay at once. Some insurers may also give a discount for having your payment automatically withdrawn from your checking account.
Life insurance  companies regularly review your credit report when calculating your premium. Paying your bills on time (which could even be noted on your report) assures the company that you are likely to pay your premium on time and in full.
If you have a certain medical condition, a broker can help find a company that is likely to work with you and may provide a better rate class.
Insurers share information with each other on applicants’ medical conditions through the Medical Information Bureau (MIB). You can request a free copy of your file from the MIB’s website . Then review it for incorrect information that could negatively affect your premium.
Take the time to educate yourself about your life insurance options. A good insurance broker can help walk you through the process and find the policy that provides the coverage you need at a price you can afford.
Photo by Nathan Eal Photography 
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