Hi I’m Mark Spokesperson for LSM Insurance As you know Life insurance premiums can be
pretty expensive even though it’s one of the most worthwhile investments you can make for
the future of your family. The following are six ways you and your family
can save thousands of dollars when buying a life insurance policy: 1. Pay Annually – Most people who buy life
insurance pay on a monthly basis. But if you can swing it in your budget, paying your policy
annually could save you thousands of dollars in premiums over the life of the policy. Take
a look at the following example: A 50-year-old man applying for $1 million
of Term 10 coverage would pay $135.18 a month. Multiplying that figure by 12 monthly premiums,
and it comes out to $1,622.16 a year, or $16,221.16 over ten years. By paying annually, the same person would
pay $1,502 a year, or $15,020 over 10 years. He would save $1,201.16 over that ten-year
period by paying annually. 2. Look for Multi-life Policies – If two
spouses are looking into a life insurance policy, they should look for a company that
offers multi-life policies. Each life insurance company charges a policy fee on its applications
and having a multi-life policy voids the charge for the second insured person. 3. Look for Preferred Rates – If you’re
healthy, look for a company that offers preferred rates. Preferred rates are given to individuals who
are in very good health and have very good family health history. The savings could be
up to 35 per cent above standard rate policies. 4. Use an Independent Broker – Term and
Permanent life insurance premiums can vary significantly from one company to another.
Independent brokers work with a multitude of life insurance companies and can get you
the best deal possible. 5. Don’t Buy a Simplified Issue or Guaranteed
Issue Policy If You’re Healthy – Simplified issue policies are available without a medical
test and have three to twelve health questions, but Guaranteed Issue policies have no health
questions and no medical tests. These policies can be a good option for people in poor health.
However, if the person is in good health, she should look for a traditional life insurance
policy at a much lower premium than she can get with a guaranteed or simplified issue
policy. 6. If Your Existing Term Policy is Up for
Renewal, Shop for a Lower Rate – Term policies build in a pricing buffer at the policy renewal.
Prior to your renewal, shop for a lower rate. It’s always a good idea to look into this
at least a few months prior to the renewal, as it will take some time to get the new coverage
approved. One very important caveat is to make sure not to cancel the existing term
policy before the new plan is approved and in-force. Term and conditions can vary dramatically
from company to company. For more details contact us at 1.866.899.4849.