Powered By

In a struggling economy, everyone is looking for extra ways to save money. What many people don't realize is that they could be paying more for life insurance than they have to. Term life insurance is less expensive than permanent life policies but will still financially protect your loved ones in the event of your passing.

Your ZIP Code:

Coverage Amount:
$100,000 $250,000 $500,000 $750,000 $1,000,000 or more

Even though term life insurance is relatively inexpensive, there are still measures you can take to make your policy even cheaper. Here are a few tips to keep in mind to help you save money on your term life insurance policy.

Buy Term Life Insurance When You're Young While your financial needs may be lower at a young age, your term life rates are also substantially cheaper. Remember, the goal of term life coverage is to cover your primary assets so that if something were to happen to you, your beneficiaries would be able to persevere financially. The best advice is to lock in as much term life insurance coverage as possible at a young age while your health is good and prices are low.

Select the Right Amount of Term Life Insurance Coverage The purpose of term life insurance is to financially protect your beneficiaries in the event of your passing. Independent financial planners recommend the following rule of thumb: purchase an amount of coverage equal to 6-10 times your annual gross income.

Choose the Right Length of Term Life Insurance Coverage While it may make sense for people in their 30s and 40s to secure a 20-year term length, a 10-year term might be more appropriate for someone nearing retirement. People who are trying to quit smoking might be best suited purchasing a shorter term and then replacing it with a longer term policy when they qualify for non-tobacco prices. Also, individuals who have 30-year mortgages might want to consider a 30-year term to ensure that their house is protected throughout the period of the loan.

Look for Term Life Insurance Coverage Price Breaks Companies often offer price breaks at certain coverage amounts (e.g., $250,000 vs. $225,000). The truth is that many people can sometimes pay less money for more coverage. Check out how your premiums change when you increase coverage to $250,000, $500,000, or $1,000,000.

Research Term Life Insurance Providers People who participate in high-risk sports or activities such as hang-gliding, skydiving, mountain climbing, scuba diving, and racing, or even those who like to have an occasional cigar could very well pay more for term life insurance coverage if they don't pick the right term life provider.

Every company looks at risk factors differently and some are more liberal in certain areas than others. Speak with a licensed insurance expert and make sure they have all the underwriting criteria at their disposal to match you with the right company.

Life Insurance Through Your Employer Might Not be The Best Value While purchasing a life insurance policy through your employer is convenient, it may not be the best deal available. Employer-based policies are often based on a composite profile of the employees you work with, many of whom may be less healthy than you, or have other underwriting factors that might drive up rates. These types of policies also expire if/when you leave the company.

Review Your Term Life Insurance Policy Often Do a review of your life insurance policy a minimum of every three years, if not more often. Rates may be lower, and your circumstances may have changed, necessitating more or less protection. If you are replacing a policy, make sure you allow enough time to get your new policy in place so your term life insurance policy doesn't lapse.

Even though term life insurance is already an affordable life insurance option, keeping these tips in mind can help you make an already inexpensive policy even cheaper. InsWeb.com can help you compare term life insurance providers to help you find the term life insurance policy to fit your needs.

— For more ways to save, spend, invest and borrow, visit MainStreet.com.