Some policies appear to cost more, but may, in fact, be cheaper when you look at the overall cost of the policy. For instance, annual renewable policies increase your premiums every year and thus may appear to be more expensive than level term policies where the premiums never increase (even though the initial premiums for a level term policy will be higher). But, in fact, level premium policies might involve higher costs over the policy's full term, and become particularly costly when you try to renew your policy at the end of the term.
The facts prove it: Tobacco users are twice as expected to die as non-tobacco users while they are insured. Insurance companies take this into account when they set their premium and cash benefits levels from the customers. You can save from 20% to 30% on premiums by stopping smoking.
Standard Vs. Preferred Risk :
Many insurance companies offer lower, preferred rates to people who appear to be in good health and live a lifestyle that promotes a healthy, accident-free life. If one is in this category, he/she may be able to get a much better deal on his/her life insurance.
First-to-die permanent life insurance policies pay cash benefits despite of which spouse dies first. Covering both spouses with one policy will be cheaper than buying two policies.
If one has a number of small life insurance policies, he/she can save money by consolidating their policies into one larger policy that offers the same coverage.
The best way to be sure that am I getting the best deal on my life insurance is to shop around. But it is important that you should do your shopping now while you are in good health, insurable and can meet the criteria for a good rate. Remember, the longer you wait, the older you will be and the higher your rates will be.
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