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Cutting Costs for Life Insurance

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									 Cutting Costs for
             Life Insurance
Cutting Costs for Life Insurance


Life insurance is mandatory for your family's financial security. However, in today's
financial climate, it's smart to reduce budget expenditures whenever you can. If you
want to reduce the amount of money you spend on life insurance, consider the
following points.

   1. Avoid purchasing a guarantee issue life insurance policy. Guaranteed issue life
      insurance policies tend to be quite pricey and with good reason. Companies
      who sell such policies guarantee that they will issue anyone a life insurance
      policy, including people who suffer from physical conditions that would not
      typically be accepted by life insurance companies.

           So, if you're in good health, it's less expensive to find a regular life
           insurance policy.

           However, a guarantee issue life insurance policy might be the wisest
           choice for you if you're not in good health.


   2. If you smoke, quit. Underwriters raise the price of insurance by 25%-50% for
      tobacco users.

           When you quit smoking and have gone 12 months without using tobacco,
           you can request that the insurance company remove the extra rating. Doing
           so will reduce your premiums.


   3. Shop around. Each company underwrites health concerns differently. For
      example, well-controlled high blood pressure might not even warrant an extra
      charge with some companies, while other companies will rate up the policy.

           When comparing rates, ensure you provide the same health information
           to each company so the estimates will reflect your true health condition
           and can be more easily compared in terms of price.


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                                      4. Strive for your ideal weight. When shopping for insurance, it can save you
                                         money if you're at an average weight for your age and sex.

                                              Each insurance company will rate additional weight differently. After a
                                              certain amount of weight, extra pounds will raise the cost of your
                                              insurance.

                                              If you're overweight, ask your agent to show you the rating chart. If you're
                                              close to a border weight between categories, you may be able to reduce your
                                              price by losing only a couple of pounds before you're weighed by the
                                              company representative.


                                      5. Cost isn't everything. Lower priced policies can actually become more
                                         expensive. Companies with an A. M. Best rating of A+ or better may charge
                                         more, but those extra costs pay off over the long haul. Here's why:

                                              If you go with an insurance company because it charges less and it goes
                                              out of business, then you have no insurance at all. So, even though you've
                                              been paying for insurance, you could actually lose your coverage and all
                                              the money you paid if you seek coverage from a risky company.

                                              In the event that a significant amount of time has passed since you've
                                              purchased a policy from a company that goes out of business, your health
                                              may have changed enough to make getting another policy difficult.

                                              So, the lesson here is to check out your life insurance company's ratings in
                                              advance of purchasing your policy as one way of ultimately conserving your
                                              funds.



                                   These are some of the most common strategies that can reduce your costs when you
                                   purchase life insurance. If you practice good health habits, shop around, and do
                                   business with a reputable life insurance company, you can secure a life insurance
                                   policy that both saves you money and provides for your family's needs in the future.




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