There are a lot of ways you can save money in your everyday life, but if you tried to do all of them you’d find you lose out on a lot of what makes life interesting and fun. Therefore, rather than trying to follow all of the money saving tips you are bombarded with, consider these top 5 tips for saving on your life insurance policy:

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1 – It’s about who you are and who you want to be

You may not think that your insurance company cares terribly much about who you are, but they do, they want you to be the best that you can be, because they don’t want to pay out your insurance policy any more than you want to die. Therefore, when there are easy things which are within your control to change such as your diet, quitting smoking and losing weight, then why not be the best person you can be, and save on your insurance premiums at the same time.

Some insurance companies will also look at your credit report to determine your policy amount and premiums. For example, if you have bad credit then you are a higher risk for the insurance company because you are more likely to default on your premiums. In some cases you can even be denied insurance if you have a bad credit report, so find out what credit reporting agencies are saying about you and request a free copy of your credit history. Often there are unpaid bills registered which you didn’t even know about, and you can instead have them fixed, and repair your credit right away.

2 – Specialist insurance

If you have recurring health problems such as heart disease or diabetes then you may think you are destined for expensive life insurance. However, there are insurers who specialise in certain areas and if you do have a health concern, working with a specialist insurer can often mean you’ll receive discounts on your policy and premiums. These specialist insurers also work with experienced underwriters who can carefully assess your health situation and tailor an insurance policy to your needs.

3 – Term life insurance

Term life insurance can be an easy way to save on your policy costs because it ensures you for a certain period only, rather than charging you high premiums to cover you for the whole of your life. While this may seem to defeat the purpose of insurance, consider when you need life insurance the most – it is when your family is young, you are paying off your mortgage and supporting your children. At this time a term life insurance policy will suit your needs, as it can cover you for the period when you need it most, until your kids leave home for example.

However, when your children are grown and looking after themselves, your house is paid off and your retirement funds and investments are healthily growing then you could be better off reinvesting the money you would pay on life insurance into one of those retirement investments.

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4 – Comparison websites

Shopping around for an insurance policy will also ensure you’re not paying more than you need to. It is easy to get insurance quotes online and use dedicated comparison websites which allow you to view policy inclusions and costs side by side to help you make the right decision. Rather than running around to the offices of dozens of insurance agencies, you can stay right where you are and find out everything you need to know, so that you can feel confident you are getting the best price.

Insurance is a competitive industry and it is important you take the time to independently compare policies, even if your employer has you covered under their policy, or you have been with the same insurer for years, there could be a better deal out there, with a better fitting package for your needs.

5 – Reading the fine print

Reading and understanding the conditions and fine print of your insurance contract will take you just a few minutes, and can save you money and hassles in the future. For example, in the fine print you may find that there are coverage options you don’t need and didn’t ask for, and when you carefully assess your policy yourself you’ll know you are getting exactly what you have research, compared and asked for.

The fees of your policy will also be hidden in the fine print, so make sure you know about every instance when you will be paying these carefully hidden costs. There could be extra costs associated with administering your bill monthly or the cost of electronically debiting the premium amounts from your account. These hidden fees can quickly add up to a very noticeable 15-20% of your annual premiums, so ask about the fee free payment options.

At the same time, make sure that your payment option and schedule doesn’t put an unnecessary burden on your budget. You need to weigh the convenience with the savings, and even though you may pay a little more for monthly premiums it will be a small price to pay to not stretch your budget at the beginning of each year with a large lump sum insurance payment.

About the Author: Kristy Ramirez writes for Life Insurance Finder, a free Australian life insurance comparison website where she helps people to compare life insurance quotes and select the best policy to meet their needs at the best possible price.

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