You probably already know how to save money on life insurance. Be in perfect health, and buy young. But you may not be young or running marathons. So what are some practical ways for you to actually be able to save money on life insurance rates? In this blog post I’ll explore ways you can get cheap life insurance coverage without turning into superman or losing 50 pounds. Use our quote tool right below to get a life insurance quote, or you can keep reading on saving money on a life insurance policy.
Ok - no big secret with this one. Term life insurance will save you significantly over buying a permanent life insurance policy. If you want to save 
money, buy term. Figure out how long you need coverage for and buy a term life policy that fills that need - for example if you are 45 and want a policy that covers you until retirement at age 65, buy a 20 year term life insurance policy. And don’t visit your local State Farm or Allstate office, because they won’t be able to offer you the best rates, even if you already have home and auto insurance with them. Companies like SBLI, Protective Life, American General, Banner Life, Transamerica and Prudential will be much more competitive than Allstate, State Farm, Farmers, or any other company for that matter.
If you simply want to buy a no medical exam policy because you don’t want the inconvenience of having blood drawn, it'll cost you. As an example a healthy 40 year old male can get a $250,000 20 year term policy for around $200-$300 annually. The same policy without a medical exam would be about $470 annually. By buying a policy that requires an exam, you could save $5,400 over the life of your policy.
If you bought life insurance when you were smoking but have since quit, you don’t need to continue to pay smoker rates. If you have been tobacco free for a year, most life insurance companies will let you retest and lower your rate, or you can apply with a new life insurance company.
If you don’t smoke cigarettes, but use chewing tobacco, a pipe, or smoke cigars and are paying smoker rates, you’re overpaying for coverage. There are some companies that will offer you non-smoker rates as long as you don’t smoke cigarettes, even if you smoke a pipe, a cigar, chew tobacco, or even smoke marijuana.
If you participate in any high risk activities, such as scuba diving, or skydiving, find a life insurance company that will offer you the best rates. For example as a scuba diver you can still qualify for Super Preferred Non Tobacco rates with ING, while many other companies will not offer you their best rates.
At the same time, if you have a pre-existing medical condition, work with an impaired risk -also called high risk life insurance agent, who can help you get coverage with the right carrier at the lower possible rates.
If you’re looking to get the best deal on a term life insurance policy you can save money by paying annually. Since the insurance company is getting their money upfront, you will get a discount over the monthly rate. If you can’t pay annually then consider semi-annual payments as you will still have a savings over the monthly rate.
Some life insurance companies offer price breaks which allow you to get more bang for your buck. For example, many times the price for a $250,000 term life insurance policy is about the same as a $200,000 policy. A $100,000 policy is often cheaper than a $75,000 term life policy. Shop various options and see if your money can buy more coverage to protect your loved ones.
Many life insurance carriers price your coverage based on your age 6 months in advance. If your birthday is coming up in about 6 months you can choose to do something called “save age”. This will backdate your policy and allow you to save money by charging you based on your current age.
One of the best ways to save money is by shopping for the best rate among high quality companies. The good news is that you don’t need to call 20 different life insurance companies to compare rates.