10 Smart Ways to Lower Your Life Insurance Premiums

Looking to save on life insurance without cutting corners on coverage? It’s entirely possible! In this blog, we’ll explore 10 straightforward tips that can help you significantly reduce your life insurance premiums. From choosing the right policy type to tweaking your lifestyle habits, these strategies are designed to keep more money in your pocket while maintaining the protection you need. 

Whether you’re a new applicant or thinking about updating your existing coverage, these insights will guide you toward smarter, more cost-effective insurance choices. Let’s dive in and discover how you can start saving today!

In this article:

• Tip 1: Shop Around and Compare Quotes
• Tip 2: Quit Smoking
• Tip 3: Choose Medically Underwritten Policies
• Tip 4: Maintain a Healthy BMI
• Tip 5: Moderate Your Drinking Habits
• Tip 6: Apply When You’re Young
• Tip 7: Consider Term Life Insurance
• Tip 8: Consider Your Job Risk Factors
• Tip 9: Evaluate Insurance Riders
• Tip 10: Cancel Mortgage Insurance
• Frequently Asked Questions (FAQs) About Saving on Life Insurance Premiums

Tip 1: Shop Around and Compare Quotes

Looking to trim down your life insurance expenses? Start by shopping around. It’s a simple but effective strategy. Different companies offer varied rates, and what’s budget-friendly for one might not be as appealing for another. To streamline this process, consider working with a broker. They can pull quotes from multiple providers quickly, giving you a clear view of the best rates available tailored to your needs. This approach not only saves you time but also ensures you get the most coverage for your buck. Make this your first step to significant savings on your life insurance plan.

Tip 2: Quit Smoking

Smoking can light up your life insurance premiums by up to 120%—and not in a good way. If you’re considering life insurance, it’s wise to butt out at least a year before you apply. Remember, even the occasional cigar can inflame your rates. This effect is even sharper with Term Life insurance compared to Whole Life Insurance. Kicking the habit not only boosts your health but also eases the strain on your wallet when securing a policy. So, for those looking to save on life insurance, stamping out smoking is a bright idea.

Tip 3: Choose Medically Underwritten Policies

Are you in good health? If so, opting for a medically underwritten life insurance policy could be a smart financial move. These policies often come with more attractive rates because they assess your health status through a medical exam. The healthier you are, the lower your premiums are likely to be. On the other hand, Guaranteed Life Insurance policies do not require a medical exam, but they typically charge higher premiums to compensate for the increased risk. So, if you’re confident in your health, take the time to undergo a medical exam and enjoy the savings that come with it.

Tip 4: Maintain a Healthy BMI

Your physical health is a key factor in determining your life insurance premiums. Insurers often offer lower rates to those who are in good health, and one of the major indicators they look at is your Body Mass Index (BMI). A healthy BMI not only reflects a lower risk of health issues but also signals to insurers that you’re a safer bet. By maintaining a healthy BMI, you can significantly impact your rates and save on your life insurance. This is a proactive way to ensure you’re getting the best possible deal while looking after your long-term health.

Tip 5: Moderate Your Drinking Habits

When it comes to life insurance, your drinking habits can have a significant impact on your premiums. Avoid excessive drinking to keep your costs down. Insurers often view heavy drinkers as higher risks, which can lead to premium increases of up to 50%. However, if you’re a casual drinker, enjoying maybe 1-2 drinks per week, your rates generally won’t be affected. Staying within moderate drinking limits is not only better for your health but also kinder to your wallet when securing life insurance.

Tip 6: Apply When You’re Young

Age is more than just a number when it comes to life insurance premiums. Younger applicants typically benefit from lower rates, as insurers see them as lower risk due to their longer life expectancy and typically better health.  By securing a policy when you’re younger, you lock in those lower rates for the duration of the policy, which can lead to substantial savings over time. So, if you’re considering life insurance, remember that sooner rather than later could lead to major financial benefits.

Tip 7: Consider Term Life Insurance

When exploring life insurance options, consider the type of policy that best suits your financial plan. Term Life insurance is often a savvy choice for those looking to minimize upfront costs. It generally offers lower initial premiums compared to Whole Life or Universal Life policies. The savings come from Term Life insurance being straightforward coverage without an investment component, making it less expensive over the policy’s term. This can be a great option if you’re looking for significant coverage at a cost-effective rate, especially during key years of financial obligation like raising a family or paying off a mortgage.

Here’s a quick snapshot of different life insurance policies! Whether you’re after low-cost coverage, long-term benefits, or a no-exam policy, this chart helps you spot the right choice at a glance.

Tip 8: Consider Your Job Risk Factors

Your profession can play a significant role in the cost of your life insurance. High-risk jobs, such as MMA fighters, bomb squad members, or race car drivers, often lead to higher premiums due to the increased risk of injury or death associated with these careers. If possible, consider careers or roles with lower risk profiles to benefit from reduced life insurance costs. Being mindful of how your job affects your insurance rates can lead to more manageable premiums and overall savings.

Tip 9: Evaluate Insurance Riders

Adding riders to your life insurance policy can provide extra protection but at a cost. It’s important to evaluate each rider, like accident death benefits, and consider whether they’re truly necessary for your situation. Removing unnecessary riders can significantly reduce your premiums. Take the time to assess what additional coverage you really need. This way, you pay only for the protection that serves you best, keeping your life insurance both affordable and tailored to your specific needs.

Tip 10: Cancel Mortgage Insurance

If you already have a robust life insurance policy, you might want to reconsider the need for separate mortgage insurance. Often, your life insurance policy can cover the mortgage in the event of your passing, which means mortgage insurance could be redundant. Canceling your mortgage insurance can free up funds and streamline your expenses, allowing you to focus on a comprehensive life insurance plan that meets all your needs without the added cost of overlapping coverages. This adjustment could lead to significant savings, simplifying your financial commitments while still protecting your home and family.

Conclusion 

Leveraging these ten savvy tips can lead to substantial savings on your life insurance premiums without compromising on coverage. To maximize these benefits and tailor a plan that fits perfectly with your lifestyle and budget, consider working with a professional life insurance broker. They can provide expert insights, help you through the complexities of policies and riders, and ensure you’re getting the most cost-effective coverage. Remember, smart planning and expert advice are your best tools for securing your financial future with life insurance.

Frequently Asked Questions (FAQs) About Saving on Life Insurance Premiums

Find a solution for what you’re looking for 

By applying these 10 tips, you can effectively manage and reduce your life insurance premiums, ensuring that you get the coverage you need at a price that works for your budget. At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, term life insurance, and permanent life insurance to build the best package to give you the protection you need. 

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Kitchener, Victoria, Airdrie, and Portage la Prairie.