As many as 57 percent of all Americans had a life insurance policy in 2014, reports the Insurance Information Institute. That's good news because life insurance pays for funeral expenses, medical bills and debt an individual may accumulate. Unfortunately, some people don't purchase this beneficial coverage because of its cost. Don't make that mistake. Save money on life insurance in seven ways.
1. Purchase term life instead of whole life. Term coverage is cheaper than whole life. It also covers you for a set time period like as long as your kids live at home, for example.
2. Stick to basic coverage. Multiple riders that cover your kids or allow you to purchase more insurance later on can enhance your life insurance coverage. If saving money is your primary goal, though, skip these options and purchase basic coverage only.
3. Choose a lower coverage amount. Experts recommend consumers purchase a life insurance policy that's 10 times your annual salary. If a policy of that amount is too expensive, try to at least cover your mortgage and debt repayment, monthly expenses, funeral costs and any educational expenses your survivors may incur.
4. Buy while you're still young. Young people often receive better insurance rates than older adults. The sooner you purchase life insurance, the better your chances of saving money on a policy.
5. Stay healthy. Insurance companies often charge higher rates to people who are in poor health or who suffer from certain conditions like diabetes or heart disease. Other health conditions that can affect life insurance rates include: gender, tobacco use, overall health, family history and lifestyle.
6. Bundle policies. By purchasing life, auto and home insurance from the same company, you can save money. Ask your agent for more information about bundling your various insurance policies.
7. Comparison shop. Numerous companies offer life insurance, so comparison shop as you find affordable rates.
Every individual's life insurance needs are unique. You can find affordable coverage, though, especially when you apply these seven tips. Talk to your insurance agent for additional ways to save money on life insurance.