Life insurance is an important investment. It can be expensive, but you can use several strategies to lower the cost while keeping the coverage you need.
Ways to save on life insurance
- Shop from financially sound companies
You can buy a life insurance policy from one of more than 1,000 companies. Shop carefully to ensure the company you choose can pay claims; look at independent ratings when possible.
- Get several quotes
After you identify a few high-rated insurers, get multiple quotes. You will provide health information and receive a class rating—Preferred (non-tobacco), Standard (non-tobacco), Preferred (tobacco) or Standard (tobacco)—which helps determine your premium.
- Stop smoking
Smokers can pay substantially more than non-smokers. Quitting and remaining nicotine-free for 12 months can qualify you for lower rates.
- Lose weight
Excess weight can lead to health issues such as high blood pressure, which can increase premiums. Improving your health may help you qualify for a better rate class.
- Choose group insurance when available
Employers, civic organizations and some banks offer group life insurance that can be more affordable than individual coverage.
- Buy when you are young
Younger buyers are typically healthier, so premiums are generally lower. Buying earlier can lock in lower rates for long-term policies.
- Consider the net cost index
For whole life policies, the net cost index can help you compare policies with different combinations of premiums and cash values.
- Look for a renewal guarantee
Many term policies include a renewal guarantee that lets you start a new term without a medical exam when the current term ends, avoiding potential rate increases due to changes in health.
- Buy more insurance if it lowers the per-dollar cost
Sometimes the per-unit cost of coverage is lower for larger policies; compare premiums for different coverage amounts to find the most affordable option.
- Pay annually when possible
Paying the full annual premium at once often costs less than monthly billing with installment fees.
- Compare policy features, not just price
Consider policy terms, exclusions and guarantees alongside premium cost to ensure the coverage matches your needs.
For a basic explanation of life insurance concepts, see What is Life Insurance?.
If you want more detail about how insurers calculate prices, read How life insurance quotes are determined.
If you want a personalized price or help comparing options, talk to an agent.
Life insurance is an investment that helps protect your beneficiaries. Use these tips to reduce cost without sacrificing the protection your family needs.
Frequently Asked Questions
How much life insurance do I need?
Calculate needs based on income replacement, debts, future expenses like college costs, and existing savings to estimate an appropriate coverage amount.
Will quitting smoking immediately lower my premium?
Insurers generally require a nicotine-free period (often 12 months) before classifying you as a non-smoker for rates.
Can I change my policy later if my needs change?
Many policies allow changes at renewal or conversion, and you can often buy additional coverage later, though age and health may affect cost.
Is group life insurance enough for most families?
Group coverage can be a good supplement, but it may be limited in amount and portability, so many people also buy individual policies for full protection.