The Secret to Lower Life Insurance Premiums

Learn why life insurance is so important, the different kinds you can purchase, and the secret to getting lower life insurance premiums.

Life insurance is probably not at the top of your priority list. It’s one of those financial planning items you may not think about until you have children. Why? Life insurance is intended to replace income to care for people who count on you.

If something suddenly happened to you, would your spouse and family members be able to pay the mortgage, pay other bills, and continue to buy groceries? In general, a life insurance policy is designed to provide for your children or spouse if they are dependent on your income.

The best time to buy life insurance is as soon as you realize you need it! Ideally, purchasing life insurance when you are young will help secure the lowest rates. The older you are, the more expensive it gets, and it can be more difficult to get approved by an insurance underwriter as well if you have health conditions related to aging.

There are different kinds of life insurance as well as many factors that go into how your rate is determined. In this article today we’ll talk about why life insurance is so important, the different kinds you can purchase, and the secret to getting lower life insurance premiums.

Do I Need Life Insurance?

This is the question you should ask yourself before getting started. Unlike health insurance or a retirement plan, not everyone needs to have life insurance. The purpose of life insurance is to secure a sum of money (in exchange for premiums) that is designated for a certain beneficiary or beneficiaries in case the insured person passes away.

If people in your life rely on you financially, that is a good indicator that you need life insurance to help support them in the event of your death. If you are the primary breadwinner, if you are a stay-at-home parent, if you have children who are unable to provide for themselves, or if you’re a small business owner, it might be a good idea to talk with a financial advisor about securing life insurance.

Different Kinds of Life Insurance

There are generally two different categories of life insurance to choose from.

Term Life Insurance
This type of policy is temporary. It lasts a set number of years, and is typically the more affordable option. (i.e., it expires when you are older because your dependents will be established and independent.)

Permanent Life Insurance
As its name suggests, these policies pay regardless of when you die. Whole life insurance is a kind of permanent insurance, with fixed premiums and guaranteed cash value. Universal life insurance is a bit more flexible.

If your employer offers life insurance coverage, it’s typically a good idea to accept it. If your group life plan isn’t as robust as you’d like, you can always purchase supplemental life insurance to provide for your loved ones. Also, it is a good idea to get life insurance outside of your employer, in case you leave that job and a new job does not offer an adequate amount.

How to Lower Life Insurance Premiums

Your rates are dependent on the type of life insurance you choose, your age, and the coverage amount, but there’s even more to it than that!

Your individual health and the health of your immediate family are used as predictors to estimate your lifespan.

Here are six factors that can influence your life insurance premiums.

1. How Old You Are
Age has a lot to do with your life insurance premiums. Younger people with a longer life expectancy are less expensive to insure. It is possible to get life insurance as an older adult or senior, but it may be limited to a specific term.

2. Gender
Women generally pay less than men because their life expectancy is about six years longer.

3. Smoking and Vaping
Anyone who uses nicotine is considered a “smoker” when it comes to life insurance. Smoking or vaping could mean your premiums are nearly double what a nonsmoker may pay. If you quit smoking or vaping and can avoid nicotine for 12 months, you can be eligible for lower non-smoker rates!

4. General Health
Most people have to undergo a health assessment when they apply for health insurance. Your insurance company may want to review your medical records and assess any health conditions you have or prescription medications you take.

Health issues that are known to affect life insurance rates include high blood pressure, high cholesterol, diabetes, sleep apnea, or any other ongoing disease.

General health is a pretty significant factor for health insurance rates. In addition to your medical history, your medical assessment will reveal your height and weight and your application will also include family medical history (things like heart disease or cancer among your parents and/or siblings.)

5. Occupation
Do you climb telephone poles for a living? Are you a pilot? A stuntman? Occupations that are considered hazardous might drive rates a bit higher. Similarly, if you frequently engage in riskier hobbies like skydiving or scuba diving you might face higher rates.

6. Your Lifestyle Record
Criminal convictions or a DUI on a driving record can impact your life insurance quotes and even your ability to get approved.

Financial hardships like bankruptcies or even your credit score can be used as a factor in some life insurance carriers.

You do have some control over the factors that influence your life insurance rates. If at all possible, maintain a healthy lifestyle and reduce your use of tobacco and alcohol substances. If you’ve recently gotten married or had children, now is a good time to lock in your rates!

Don’t wait.

Life Insurance is Better with an Experienced Professional

You may be searching online for a policy quote or working with your financial advisor to figure out what kind of life insurance policy best meets your needs. Advisors, check to make sure you have a partner in life insurance who is shopping the entire market for the needs of your clients.

When you have a client need, is the process seamless? Do the options your broker or agent provides meet the needs of your clients? Are they well versed in the subtle differences of each carrier?

It’s worth it to work with an insurance broker like Advanced Benefit Solutions because we understand what each individual life insurance carrier is looking for. We’ll work on your behalf to find the right policy and negotiate the best rates possible.

Applying for life insurance is a lot more extensive than other kinds of insurance, which is why it is important to be efficient. We bring a personalized experience to the table, helping you compare rates and even negotiating rates on behalf of each individual.

If you’re looking for someone who understands life insurance, get in touch with our team by calling (800) 291-2009 or send us an email at to get started.