A life insurance policy can ensure your loved ones are financially secure when you die, but the cost prevents many people from buying one.
Fortunately, you don’t have to break the bank to secure life insurance coverage. And if you already have a policy, you might be paying more than you need.
You can save money on life insurance regardless of your budget. Considering these ways to save can put more money in your pocket now or the pockets of your loved ones later.
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more. How to become a member today: Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
If you’re over 50, take advantage of massive discounts and financial resources
Choose a reputable company
Purchasing life insurance is a big decision and one you should consider carefully. Researching the insurance companies can prove just as important as researching each policy.
Choosing a reputable company with good reviews and accreditation with the Better Business Bureau (BBB) will give you peace of mind, knowing your money is safe.
Cheaper isn’t always better, especially when you question the integrity of the business.
Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.
Buy sooner rather than later
You can save a significant amount of money when you purchase a life insurance policy at a young age. Younger individuals can lock in lower premiums than older buyers.
In addition to age, your health will also impact your rate. Health conditions can arise or worsen as you get older, so waiting to purchase life insurance might cost you more than you expect.
Determine your needs
You don’t want to pay for coverage you don’t need. Before committing to a policy, determine how much you’ll need to leave behind.
Factors to consider include whether or not you have children, your debt, and your loved ones’ living expenses.
Your needs might change as you age, but you can purchase more than one policy to meet your needs now and down the road.
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest. National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p> How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.Resolve $10,000 or more of your debt
Get in shape
If you’re overweight, consider getting in shape and losing the extra pounds before purchasing a policy. You can typically secure lower rates with a healthy body mass index (BMI).
Maintaining a healthy body weight can also lessen your risk for health problems, like diabetes and heart disease, all of which could also increase your premiums.
Quit smoking
Smokers generally pay higher premiums than non-smokers, even when they don’t have any medical problems. Smoking increases the likelihood of several serious health conditions, such as cancers and COPD.
While purchasing life insurance as soon as possible can save you money, it’s often worth waiting a year to kick the nicotine habit and remain smoke-free.
Trending Stories
Consider term life insurance
Term life insurance isn’t right for everyone, but it's generally less expensive than permanent life insurance policies.
If your main concern is financially supporting minor children, term life insurance can be a good option. It can also make sense if you want to ensure your home gets paid off in the event of your death.
Ensure a guaranteed level premium
To avoid paying higher rates when your term ends, choose a policy with a guaranteed level premium.
Many people opt for employer-offered life insurance policies, but some of these come with yearly premium increases.
It’s important to understand all the terms of a life insurance policy before purchasing, so read through your document carefully regardless of where you buy.
Use an independent agent
Independent agents can sell you policies from more than one insurance company. This can help you compare policies from different insurers.
A captive agent’s goal is to sell you a policy from only one company, providing them with fewer options to offer you.
Make annual payments
Making advance payments can save you money in many industries, and the same is true for insurance.
You probably already know you can save money on your car insurance by making payments every six months — or annually — rather than monthly.
Consider doing the same with life insurance premiums if your budget allows it.
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2 <p>See website for details.</p> With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year! This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide. Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.Earn cash back on everyday purchases with this rare account
Don’t skip the medical exam
Some policies allow you to purchase coverage without a medical exam, but you’ll typically pay a higher premium if you do so.
If you’re generally healthy, don’t skip the exam. It shouldn’t cost you anything other than your time. Plus, the examiner can usually perform the physical at your house or even at your workplace.
Request a reevaluation
Lifestyle changes can improve your health and lower your life insurance premiums. Quitting smoking, losing weight, and lowering cholesterol can all help you pay less.
If your health has improved since purchasing an insurance policy, see if your insurer will reevaluate you. You could also get a lower rate if the medical exam reveals better results.
Compare insurers
You’ll want to compare life insurance policies just as you would car insurance policies or mortgage lenders.
Spend the time to research and shop around so you can get a policy that meets your needs and aligns with your budget. Don’t forget to consider more than just the price. Check the company's reevaluation policies and if you’ll experience rate increases too.
Opt for smaller payouts
Receiving a life insurance payout as a lump sum isn’t always the best option. Some people opt for beneficiaries to receive recurring smaller payouts. This is often a good choice if your goal is to supplement income.
Your insurer might offer a discount for choosing to forgo the lump sum. If you’re considering this option, check with your company to see if it can save you any money.
Bottom line
Life insurance is one way to provide financially for family members after you’re gone. But it’s not the only way.
When determining how much life insurance coverage you need, take into account your other assets. Leftover retirement savings and investments can provide for loved ones when you die too.
It’s also important to pay off debt and avoid foolish money mistakes. You won’t want debt to consume your payout and leave your loved ones with nothing.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.