Saving Money on Life Insurance: Questions to Ask Before You Buy


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Saving Money on Life Insurance: Questions to Ask Before You Buy

Choosing life insurance is just like making any other financial decision. Typically, you will find that taking time to make the right decision will generally yield better results than if you make an uninformed quick decision. As they say, “If you are going to do it, you should really do it right.”

Here are some questions you might want to ask yourself before committing to buying life insurance. 

They can help to ensure you not only choose the right life insurance product, but they may also save you some money too!

How much coverage do I need?

Finding out how much cover you need is the key to getting the right level of life insurance. There is a remarkable number of people out there who are either under-insured or over-insured. Being under-insured means you won’t have enough coverage should you need to make a claim, and being over-insured means you are probably paying too much.

Use an online calculator to give you a rough idea of how much coverage you need, or speak to a financial adviser or insurance expert for advice.

What kind of policy is right for me?

With life insurance, there is not just one single option. Instead, there are many different products out there. From accidental death insurance, to income protection insurance, to funeral insurance, and much more. Do some research to find out what different products are on offer, and work out which one is best for you.

Bear in mind that some insurance providers will let you tailor your policy, allowing you to get the most suitable policy at the most suitable price.

How do I choose an insurance provider that is right for me?

There are many different providers out there, and it can be difficult choosing the right one. Again, do some research and find out what you can about the insurer. Read independent online reviews, and find out what other people think. Try to choose an insurer that has an “A” rating or higher.

Where can I find the best deals?

Many people start their search for life insurance online on comparison websites. This can be a useful place to start, as you can compare multiple options in one place at the same time. Be aware of the comparison criteria used on the website, and also remember that the price given will usually be an estimate, and not what you will actually pay.

What do I do once I have a shortlist?

Once you have checked out all the options online and made a shortlist of policies you like, it’s time to get down to the nitty gritty. This is the time to make more thorough comparisons, and to find out more information about each policy. Read the small print to find out if there are any exclusions that may affect you, or anything in the policy that shows it is not as good as it seems.

How can I save money?

When you’re looking at life insurance options, be sure to check for any special offers. Some providers offer a certain amount of cash back if no claims are made within a certain time. Others may offer a discount for buying online. Some may offer one or two months free each year. Just be sure to choose a policy that is right for you – don’t choose one just because it has a great offer but not-so-great insurance.

How can I reduce my premiums?

One of the best ways to reduce your premiums is to get healthy! You can quit smoking, cut down on alcohol, do more exercise, or reduce your cholesterol or blood pressure if they are high. Becoming more healthy can have a huge effect on your premiums, and can save you a huge amount of money over the life of the policy.

What is the best payment option?

Insurers often offer different payment options. You may find that making annual payments will be cheaper than monthly payments, but it will really depend on whether you can afford to pay a large sum up front, or you want to spread the cost throughout the year.

Do I need to review my life insurance once I have it?

Reviewing your life insurance regularly is one of the most effective ways to save money, and also to make sure your policy still suits your lifestyle. Try to review your life insurance annually, and also when your lifestyle changes significantly – such as, having a child.

How about you all? What strategies/methods do you use to 1) find the best life insurance policy and 2) ensure you are saving the most money? 

Share your experiences by commenting below!

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  1. Some other ideas:

    1. Ask your general insurance agent to compare multiple carriers. Often different carriers will rate you differently depending on your circumstances. Certain carriers are more competitive with certain types of clients than others. A good general agent (versus a “captive” agent that works for one insurance company) will know which carriers may be best for your situation.

    2. See if you can get life insurance through the same insurance company as your home & auto (and other liability insurances). You may be able to get a multiple-policy discount on all of the policies that, in aggregate, makes the cost of all the insurance coverage less expensive.

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