SECRET: How to Save Money on Life Insurance

If you bought TERM Life Insurance in the past 5 years you may be able to save money as prices have come down by up to 40% (due to increased competition). I work with 33 companies to ensure you get the BEST price on the market!

Improving your health or changing careers may come with an added benefit: You could save on your life-insurance premiums.

You also can shop around for a new policy to see if another insurer has better rates, or simply request a restatement of health on your current policy.

If you’ve made a significant health change—say, you quit smoking, lowered your cholesterol or lost weight—and have maintained it for more than a year, consider re-evaluating your current premiums.

You also may be eligible for lower rates if you had a high-risk job—such as a structural iron worker—when you first purchased the policy and have switched to a lower-risk job or retired.

If the insurer determines that the changes place you in a lower risk class, you’ll be offered lower premiums (it will require a blood test to affirm similar health). This applies to term and permanent policies including whole life.

The savings could add up. For instance, if a 45-year-old male—who is 5’10” and weighed 300 lbs. when first buying a $500,000 term or permanent policy—has lost 60 lbs., has kept it off for more than one year and has no other health issues, he could see his premiums drop by about 50%. A 45-year-old female smoker who quit and is otherwise healthy could save about 60%, he says.

Experts say there’s little downside to asking for a reassessment once you’ve had a policy longer than the standard “contestable period” of two years, during which time the insurer can challenge the information you disclose. After that, if you ask for a reassessment and it turns out to be a bad deal, you can just keep your current terms.  Just like retaking an exam back in college for a better grade…you can’t get a worse grade.