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How can I reduce the cost of life insurance?

The price you pay for life insurance depends on your age, your health, and your lifestyle. However, there are ways to lower your insurance premiums. The following are some simple suggestions.

Often, you'll actually pay less for a little more insurance as you approach multiples of $250,000 in coverage. For example, $240,000 of coverage might cost $275 per year, while $250,000 in coverage might cost only $260 per year. Find out the rate per $1,000 of coverage, which often drops when you pass a certain level of coverage.

Some life insurance companies offer competitive rates for conditions such as diabetes, heart disease, and cancer. These companies employ underwriters who are trained in analyzing people on a case-by-case basis, rather than combining everyone with a particular condition into one group. If you have a health condition, ask your insurance agent to shop for an insurance company that specializes in covering your condition.

You might be surprised to find out how much you can save on your insurance premiums if you quit smoking, start exercising, and lose weight. Many insurance companies charge smokers double the nonsmoker rate for insurance. Similar discounts can apply if you lose enough weight to fall into a preferred category. If you quit smoking or lose weight, contact your current insurance company to see if it will reduce the premiums accordingly.

Riders can add value to your life insurance policy by covering situations that a standard life insurance policy does not insure. However, when purchasing a rider, you should be careful not to duplicate your existing coverage, resulting in wasted premiums.

Your insurance could end up costing you more if you choose to make convenient monthly payments rather than pay the entire premium annually. Before you choose a payment plan, compare the single payment price to the total cost of the monthly payments.