Friday, March 2, 2018
9 Ways to Save Money on Insurance
A common misconception about Life Insurance is that it is expensive. That couldn’t be further from the truth. When you think about it in the grand scheme of things, people are willing to pay upwards of $300 a month to insure their car, yet $30 a month to insure their life is too much. Kind of funny right? If you crash your car, you and your family will move on without much disruption. When someone loses their life, everything and everyone is impacted greatly. Because life insurance considers age and health, there are ways to make it even cheaper. I have seen some policies as low as $15 a month for $250,000 worth of coverage. That is very affordable. When you are young and healthy is obviously the best time to get insured. Today I am going to show you ways to make your life insurance premium as affordable as possible. Not only will you save money, but knowing you are healthier is worth its weight in gold as well.
1) Lose weight
It is fairly obvious that if you are overweight it is bad for your health. What might not be as obvious is that it affects your life insurance premiums as well. A factor that is used when determining your premium for life insurance is your Body Mass Index. Your BMI is a calculation using your weight and height. If you can reduce your weight and bring down your BMI, you can apply for lower rates with your life insurance company. This is if you can keep the weight off for a year. Lower weight also brings down blood pressure, cholesterol and blood sugar which is good for overall health as well.
Top 10 Health Conditions that May Affect Your Life Insurance Rates – Finder
2) Reduce dangerous activities
Many people do not realize that living a dangerous life can affect being accepted for life insurance. Things such as bungee jumping, skydiving, scuba diving and flying a plane all come into play. Even traveling to dangerous parts of the world can make your premiums increase or cause you to be declined for life insurance altogether. Reducing the dangerous activities you take part in is a good way to make life insurance more affordable.
3) Driving record
If you have too many traffic violations it can affect your life insurance premiums. It makes sense that someone who speeds too often is potentially a risk for accidents. Also, driving impaired and careless driving charges have a huge impact on how the life insurance company views you. Keeping your driving record clean can save you money on life insurance, but also your auto insurance as well.
How Your Driving Record Affects Your Life Insurance – Quotacy
4) Smoking
A huge factor in life insurance premiums is smoking. That is a pretty well known. What isn’t as widely known is the extent of which smoking factors into your life insurance premium. I have seen smokers pay double or even triple what non-smokers pay. This can add up to thousands of dollars over the life of the policy. It should also be noted that if you stop smoking for 12 consecutive months, you can apply for non-smoker’s rates. Besides living a longer, more healthy life, your wallet will thank you as well.
5) Drinking alcohol
Who doesn’t like to indulge in an adult beverage or two? Taking part in 4-5 drinks daily can cause you to be seen as an excessive drinker in the eyes of the insurance company. That much alcohol consumption is bad for your health and could lead to premature death. The insurance company knows this and can increase your rates or even decline you all together. Like smoking, if you limit or stop your alcohol consumption you can apply for a reduced rating after one year.
6) Drugs
Using illegal drugs is not only risky for your health, it is just plain stupid. In the insurance company’s view, it’s far too risky to insure a drug user. Things like cocaine, LSD, and opioids are a no-no when it comes to applying for life insurance. The use of prescription drugs can have an effect on your premiums as well. Obviously, needing certain prescriptions to function in everyday life shows signs of bad health. Focusing on bettering your health will help the insurance company reassess your risk.
12 Signs You Are Dating a Deadbeat – Budget Boss
7) Age
Every year you get older, life insurance gets a little more expensive. This is why getting it while you are young is crucial to saving money on premiums. Life insurance premiums are based on mortality tables and as you get older, the chances of you dying increase. When you hit a certain age, around 60 years old, insurance rates can become expensive. Getting your policy rates secured when you are younger is always the best bet and as you get older it becomes good to shop around to find where you can get the best rate.
8)Buy annually
Just like your auto insurance, life insurance will give you a cheaper premium should you choose to pay annually versus monthly. This is because the insurance company will save on the transaction processing and administration during the year. This is also because the company gets to hold onto your money for the whole year instead of a month at a time and therefore can make more money in interest. Either way, it can turn out to cost you about a month’s premium less, so it is worth your while.
9) Only buy what you need
Life insurance needs analysis should not be complicated. When you go back in the day, calculations were made with a pencil and paper. Being overinsured is a sure-fire way to spend too much money every month. Make sure you have all your debt obligations and income replacement needs covered. Throw in investments goals and you are set. The numbers should make sense in your mind, so don’t get oversold. This is about your goals and dreams, not the insurance agents.
These are just a few ways to save money on life insurance. Remember that it can be as cheap or as expensive as you would like it to be. Reducing your risk to the insurance company will allow them to provide you with the best rate possible. It also means you are healthier which is never a bad thing. Take the time to do your research, but also make sure you are living as well as you can.
Thank you for tuning in as we conclude Insurance Week at Budget Boss. Join us next week as we celebrate the one-year anniversary of Budget Boss. If you would like to learn more about how you can save money on insurance, please do not hesitate to contact me at joe@budgetboss.ca. Have a great weekend Bosses!
“Good health is not something we can buy. However, it can be an extremely valuable savings account.” – Anne Wilson Schaef
Email – joe@budgetboss.ca
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