Your parents always told you to be prepared for anything, and life insurance may be a great way to follow this advice as an adult. A life insurance policy could be a big help to your family if you are to die unexpectedly or are diagnosed with a terminal illness.
They could use the money in many ways—from paying off the mortgage and covering school fees to taking time off work to take care of someone or just continuing their lives with fewer financial worries. It could be the difference between needing to sell the family home, changing schools or getting a second job to make ends meet.
No matter what your reasons are for getting life insurance, you probably want to get your money’s worth. Finding savings could make it a lot easier to help protect your family’s financial future and keep living the life you want now.
Here are four easy tips for saving money on life insurance:
- Buy young
When you’re young, you might wonder if the cost of life insurance is really worth it. You may assume that a policy will be more affordable when you’re older and put off getting one until then.However, this may not be the case. Younger adults are generally in good health and typically pay less for life insurance because of this. The older you get, the more you should expect to pay for cover due to naturally declining health or pre-existing conditions you’ve been diagnosed with over the years. Buying life insurance when you’re younger and likely fitter could help you save money in the long run.
- Shop around
When it comes to life insurance, it may pay to compare quotes from more than one insurer. This could help you not only find the best price, but also the policy that best meets your needs.There’s a lot of competition for life insurance in New Zealand (and around the world), and you may want to carefully review your options before signing up. Besides price, you may want to look at other factors like customer reviews and financial strength ratings. Choosing the wrong policy could mean switching to another provider later, when you may be charged higher premiums because you’re older.
- Quit smoking
A life insurance application often looks at many factors to determine the premiums you’ll pay. But smoking is typically a big part of these calculations.Being smoke-free could make a big difference when applying for life insurance. Non-smokers typically pay less for policies, because they may be less likely to develop some serious health issues which are associated with smoking. If you already have a policy, quitting could still help you save. Many insurers will review your policy after you’ve been smoke-free for at least 12 months and may be able to offer you lower premiums to reflect this healthy lifestyle change.
- Avoid service fees
Changing how you pay your premiums could lead to some savings. Some life insurers charge credit card fees for each transaction, meaning you get charged every fortnight or month when payment is taken. These fees may not seem like much, but they could add up over the life of your policy.Finding a better way to pay could help you avoid these charges. Many companies can direct debit your premiums directly from a bank account for free—no pesky transaction charges added. This could also help you avoid the hassle of a missed payment when you replace your credit or debit card.
Life insurance may not be the most enjoyable part of being an adult, but it could be a smart way to help protect your family’s financial future. Even better, it could be a cost effective way to plan for life’s uncertainties without needing to put off the plans you’re making now.
