Like any financial contract, life insurance has its complexities, especially when you begin comparing the particulars of one policy versus another. While understanding your policy’s fine print is important, the good news is there are straightforward steps you can take to help keep a lid on life insurance costs, whatever type of policy you have.
Your overall health, determined through a physical exam or questions, plays a big part in the cost of your life insurance. Habits such as smoking or chewing tobacco, or conditions such as high blood pressure, excessive weight, diabetes or asthma can all add to your costs. Look at it this way: Your insurance underwriter wants you to live a long, healthy life, and so do you! Taking steps to curb harmful habits and stay fit through exercise and other lifestyle changes can improve your quality of life and your financial picture at the same time.
You’ve taken fitness advice to heart and stopping smoking for a year, lost weight, controlled your asthma through medication or other steps—and you’re feeling fit as a fiddle. Now’s the time to see if you can slim down your premiums. Ask your agent to see if you are eligible for a reduced rate based on your improved health.
As a general rule, buying insurance early helps lower the price. As you age, the premiums tend to rise. Locking in your premium rates over the life of your insurance may help save money in the long-term—as could buying coverage for a longer period of time, if that suits your needs. Don’t buy more than you need, but keep in mind that expanding your coverage later on could be more expensive than adding those features while you’re young.
Start with term insurance.
Term insurance is generally less expensive than permanent insurance, such as Whole Life. It may be the best choice on a limited budget, helping to replace some of your lost income and provide financial support for your family if you should die.
Use Nationwide’s interactive tool to find the life insurance insurance that’s right for you (NFW-2620AO.2).