Life Insurance Savings

Wednesday, June 10th, 2009

Saving money comes in all shapes and sizes; this week, I thought I’d touch upon saving money in the life insurance arena.

Now I hate those TV ads as much as the next mom–all of the fine print and the lines like, “Life insurance for just $10 per month!”  The question is, for who?  A 70-year old with heart problems?  A 21-year old firefighter?  I mean, really.  Life insurance is such a personalized thing that you can’t make these statements reasonably.

However, term insurance can be pretty inexpensive, compared to the benefits you receive.  And whether you shop it through a website or use an agent, you are going to pay the same amount.  So if you can find an agent that you trust, I would definitely do it that way.  Agents can find out how different life insurance companies treat different health situations, and save you a lot of money in the process. 

Here’s a recent example as to why:

A client of mine had been told that due to certain family history, she had no chance of getting a term policy on her own.  So she went through her employer, where the cost  increases each year.  I didn’t believe that she was un-insurable, so I asked around.  As a result, she has a new policy, costing her less than the employer’s policy, at a fixed rate.   And they gave her the healthiest rating possible!  This is going to result in a $6600 savings over the life of the policy!

So if someone tells you “no”, you can’t get a better policy, seek a second opinion from an experienced insurance agent.  It could literally save you thousands of dollars.

Copyright 2008-2009 Kristin Delfau, author of Turbo-Mom's Guide to Saving Money Without Wasting Time a womens' personal finance book, and Aji Publishing.

Tags: big stuff, life insurance, saving money
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