Life insurance can be tricky. Why would you want to pay for something you might not ever use?
Because if something horrible happens, you don’t also want to face a financial catastrophe. Especially if you have kids, you want to make sure you are able to pay for the bills if the worst-case scenario happens.
But this doesn’t mean you should be overpaying on life insurance. If you can get what you need and save money, this is a win-win situation.
Are you looking for life insurance quotes online to help you save some money?
Read on to learn how you can save money by getting an online quote.
Why It Pays to Shop Online
Recently, I was speaking with a friend who is a self-described introvert, and she was mentioning how overwhelming she found the festival she’s attending. Jokingly, I thought to myself, if you need a “bit of space” just tell everyone you’re a life insurance agent, and they will run to the exists leaving you to your solitude.
I kid, of course, but there is a bit of truth to it. Life insurance is one of the least sexy products going; people don’t want to buy it, and they really, really don’t want to talk to anyone selling it. A least, that’s been my experience working in personal finance for 20 years and maintaining an insurance license.
If you want to empty a room, say you’re there to talk about “end of life.”
Given that life insurance is such an impossibly tricky product to sell, you may wonder why I would bother with insurance at all? Well, the answer is simple. I worked primarily with middle-class people with modest incomes in an area where both salaries and cost of living were below national averages.
Simply put, my clients didn’t make tons of money. Helping them save usually involved cutting expenses as much as possible, being efficient, and even thinking outside the box. When we would review their budget, typically the client’s most significant expenses, were taxes, housing, and insurances.
You may be surprised that housing wasn’t number one, however real estate in the area is very inexpensive compared to national averages. Downsizing the home to free up money isn’t an option when decent home prices barely break six-figures.
It’s possible we could have cut back on some hobbies and discretionary spending. However, budgeting is a lot like triage on a battlefield; you don’t fix a broken arm first when your patient is hemorrhaging. Most Americans are hemorrhaging money in the form of taxes and insurance.
So, before you spend an afternoon on the phone to save 20 dollars a month on your cable bill, it may make sense to spend that time comparison shopping your insurance policies. You could save enough money in the budget to keep date night.
Getting a Life Insurance Quote Online
The internet and technology are changing how people get their financial information and how products are sold. In the past, the only way to really get insurance quotes was to reach out to a broker, online wholesaler, and request a quote.
Today you can skip getting your quotes from an agent. Some insurers now offer a direct to consumer approach and leverage technology to reduce costs. If you prefer to bypass a broker and go the direct path our top pick is Bestow.
Bestow promises a no-hassle process. You request a quote online in a few seconds and apply for for a policy online without dealing with doctors, physicals, and brokers. Plans start as low as just five dollars a month.
What makes Bestow so great? For starters, you don’t have to enter a ton of personal information to receive an online quote. You can request a quote in just a few seconds, and you don’t even need to enter in your name or email to request a quote.
Of course, you will need to enter in some info if you decided to apply. However, even then you can apply for a policy without all the hassle because of Bestow pings online databases to keep their application short.
If you have been putting off trying to save money on life insurance because you don’t want to speak with an agent or fill out a bunch of forms just to get a quote Bestow offers a great solution.
Here is What You Need to Know to Cut Insurance Costs
Determine How Much you really Need.
One of the biggest reasons people overpay for insurance is not carrying the correct amount of insurance. Buying more coverage than you need is essentially wasting money. On the other hand, being underinsured may cause other financial problems.
Related to buying too much insurance, you may have too many insurance policies. Meeting with clients and doing a review of their coverages, some people would bring in five or six different policies.
Often, it is less expensive to purchase one larger policy then several small ones. Also, don’t assume the group policy at work is the most cost-effective option.
Work on Your Health
If you are currently smoking, do your best to quit. Giving up smoking will save you money in cigarettes and will reduce life and health insurance costs. Typically, for life insurance, you must be smoke-free for a few years.
However, some insurance companies will upgrade your policy to a non-tobacco rate when once you have been tobacco-free for long enough. The sooner you give up smoking, the sooner you can enjoy better insurance rates.
Get fit! Losing just ten pounds can reduce your insurance rates significantly. Losing only 10 pounds could save over three thousand dollars over twenty years. Plus, you will look and feel better, so it’s a huge win-win.
Insurance companies are always competing and offering new products. You should call and get quotes online from multiple insurance companies to help find the best deal.
Also, insurance pricing can be highly situational. I have seen clients get turned down for coverage and one company and offered standard and even preferred rates at another. The insurance company that saved you, co-worker, a bunch of cash, may not be the best deal for you and your family.
It’s Really About Price
Insurance companies love to brag about their A.M. Best Ratings and J.D Power and Associate Awards. However, it’s really about price. As long as you are working with highly rated insurance companies, I am not convinced there is much of a difference between an AAA-rated company and AA+ company.
I am sure the insurers or those in corporate would disagree. But as a consumer, you are not lending them billions of dollars or reinsuring them. As a consumer, you are buying a highly regulated product that is supervised by the state. So you should look for the highest-rated company at the best price.
Save Money on Life Insurance
Life insurance may not be as much fun to discuss as REITs, or how to invest your money, however, it plays an important role in a financial plan. Insurance may not be fun, but saving 50 dollars or more a month can help you keep the items you do enjoy in the budget.
This post was made in paid partnership with Bestow. Neither Bestow, nor North American Company for Life and Health Insurance were involved in the preparation of the information in this article. The opinions and ideas expressed in the article are those of the author(s) and are not promoted or endorsed by Bestow or North American. You should always seek professional advice before making a financial decision.
This article was originally published on The Money Mix and is republished with permission.
Michael has worked in the financial services industry for nearly 20 years. He lives in rural PA with his wife, two children, and too many animals. Michael shares his experience, unique insights, and profiles inspirational success stories at Your Money Geek.