Life gets more expensive from year to year and making it a little cheaper has become a kind of a contest. We write down our expenses every month, make different calculations and discuss this problem with our friends.
Many people refuse from purchasing life insurance because it is too pricy. This article is devoted to those, who understand, that insuring their life is necessary and it is not the kind of a thing we can save money on. But still they want to make payments a little less and rates a little higher.
Here are 10 tips for those who want to increase the level of house economy.
- Use online service and make the payments less costly. As you have already heard there are a lot of online tools that help to compare different rates of various insurance companies. Before signing the contract with life insurance firm, you have to spend several hours in front of the computer screen, take the cup of coffee or the glass of wine and compare the insurance plans offered by different companies. You can spend your free and calm evening in order to use the online tool and compare the rates.
- To save some cash, you can get the cheaper kind of service. For example, you can get term life insurance instead of whole life insurance. It is recommended to do so, because it has so called cash value component. The money you invest in your insurance will be saved and you can borrow them or even take them out of your policy in case of necessity. Of course whole life insurance is not a bad thing. Nevertheless many young families prefer to get term life insurance. It is a great idea to make the starting capital for the new family. You will pay not much every month during a decade or so as usual. At the end of this period (if the insured one didn’t die) certain amount of coverage is returned to him and thus the family has some initial amount of capital that can be developed into the greater sum of money if you invest it correctly.
- Don’t buy the service you don’t need or don’t understand. Every insurance agent, even the best one, just makes his money. The more you buy from him, the more money he earns. Thus he will offer you plenty of services and advertize its advantages and you can hardly resist his charismatic competence. So every point in your contract must be discussed and understood by you. What exactly will you get from the option you have ordered and paid for it? Do you really understand the profit you will make?
- Be aware of hidden obstacles. Remember that bright advertizing brochure and real life are two different things and look into the root. In the promise “to give you all the coverage in one minute” is hidden the idea that premiums will be extremely high and you will get your coverage after the approval of your claim that may take several days or weeks.
- Apply for lower risks if you have a right for it. Your rates for life insurance will be higher if you have chronic disease, have overweight or smoke. Sometimes a person can drop smoking, lose some extra pounds and cure from a disease. It is possible to apply for lower rates if you have decreased your risks. So call to your agent and get a discount.
- Make the payments for your insurance plan once a year, not every month. Making annual payments makes the idea to save some money probable and not so vague. Very often insurance companies offer higher rates for people, who make their payments often. It is better to pay great amounts but do it rarely. Nevertheless many people prefer the first kind of payment as thus the amount of money they spend seems less to them. They say that it is hard to get several thousands of dollars to pay in one time and it is easier to pay several hundred every month. In fact you can simply leave several hundred monthly at your account and then pay the necessary amount to your insurance company once a year. You will be impressed by the fact, how much it is possible to save.
- Get group insurance policy. To become a groupie is a good idea for saving cash. Various insurance companies offer plenty of plans that can be bought by the whole enterprise or a big family or some association where you have membership. These policies are known by their extremely low rate.
- Check the age option in your policy. You know that we can’t become younger, so we constantly get more risky for the insurance company. Every year our health becomes worse and worse and the risk to apply for the insurance coverage increases. Sometimes insurance companies calculate your age in the wrong way. If you write in your application form that you were born in December, 1972, then only at the end of 2015 you will be 43. At the same time your insurance company will count your premiums from the very beginning of 2015 as if you were 43. Thus you have to check the age option and save at least $100 per month.
- Backdate your policy if you have learnt that you paid more. If you have noticed that during several months you have paid more because of age option, return to the starting point of your deal and count your payments with your agent one more time. Thus you can reduce your payments and pay less the next month and even get some cash back.
- Finally, study the problem accurately and thoroughly. It becomes easier to save money if you know all the facts about the company you deal with. Many companies offer various discount programs. Does your company have a jubilee of its activity this year? Does the CEO of the company have a birthday? Various remarkable events in the life of the insurance company are accompanied by various discount programs. Be ready to take part in them!
As you see, the process of moneysaving can be interesting and creative, when you have to collect money on your account and then to spend for your love and pleasure and feel perfect because of it. Don’t get annoyed if you spend a little more this month. In fact life insurance is an important thing and it is better to have it than to lose because you just want to get several dollars in your pocket. But be attentive as very often we get things we don’t need at all and they are quite pricy for our pockets.
Save your money and – that is more important – all the time stay in good mood!