7 Crazy Ways to Save Money on Life Insurance


7 crazy tips to save money on life insurance

#1. Don’t buy it!

It may seem crazy for an insurance agent to say this, but if you don’t need it don’t buy it.  Life insurance is an important part of your financial planning, and families protection but if you don’t need it, don’t buy it.

Also don’t over buy life insurance.  If you only need $200,000 in protection, don’t buy a $1,000,000 insurance policy, you are just wasting you money.

#2. Double up

You can add an insurance rider to many insurance polices for a lot less than a separate insurance policy.  You can add riders for you spouse or children for very cheap compared to a separate policy.

There are some drawbacks to this however; and it can seem complex to make this strategy work. But the potential savings are huge.

#3. Buy in lots

Buying insurance in lots of $10,000 for up to $100,000 in coverage, lots of $50,000 for coverage up to $250,000, and in lots of $100,000 or $250,000 for larger insurance policies.

If you only need $415,000 in insurance to cover all your expenses, and provide for your family it may be cheaper to buy $500,000 in coverage then the $415,000.  This does vary buy insurance company and product so be sure to get a quote for both to make the best decision.

#4. Get healthy

Stop smoking, go on a diet, join a health club, etc…  You get the idea, the healthier you are the cheaper your insurance coverage will be.  As an example when I was shopping for insurance losing just 5 pounds allowed me to save over $7 per month on insurance that I plan on having the rest of my life.

Lets see $7 x 12 months = $84 per year for 10, 20, 40 years = a pretty big reason to hit the gym.

#5. Have someone else help you pay for it

What?  I can have someone else help pay for life insurance or help me get a discount it?

Yes, you can.

Check with your employer, your credit union, and any organizations you belong to.  Many will pay for small policies for free and offer you a discount on larger policies.  This is a good way to save money but may not be the best way to buy insurance, because if you leave the job, etc… you lose your life insurance.

#6. Buy the right insurance

The old whole life vs term life debate and the winner is usually both.

Most people do not need a large whole or permanent life insurance policy for their entire life, but only a small policy to cover final expenses.

Most people will also not be happy with only a term policy that covers there needs for only a few years, and leaves them needing another policy later in life when it is now very expensive or not even available due to health issues.

# 7. Buy now, the younger and healthier you are the cheaper insurance will be.

Insurance costs are based upon age and the same coverage will cost you more.  Let’s take a look at an example**.

A $50,000 insurance policy may be only $20 per month if you buy it when you are 20 years old, but $50 per month if you buy when you are 30.

** for illustrative purposes only not actual figures from and actual quote.


About Phil

When I was selling Insurance, I found there was a lot of confusing and misguided information on the internet. I would spend a lot of time educating my clients on how insurance works, the correct ways to use it, not buying more or less than they need, etc... Now that I am living in Belize and marketing full time on the internet. I felt I should put some simple but accurate information on the internet to help people decide what is right for them.

Leave a Reply