How do I lower the cost of my current life insurance?

There are many ways to lower the cost of your life insurance without changing insurance companies. However, most of the methods to lower your life insurance involve lifestyle changes. If you’ve had your policy for many years, it is very likely that you will not benefit by changing providers (since you locked your rate in when you were younger), but many providers will lower your premiums if your health has improved or you no longer take a lot of risks.

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Factors that Drive Insurance premiums
Understanding the factors that drive life insurance premiums is important since many of those factors are within your control. Generally speaking, if an insurance company thinks you will live a long time, they will charge you a lot less than if they think you are likely to die soon.

Some of the largest components are:

Your current health – Life insurance companies use your current health to make forecasts about how long you are likely to live and in turn how much they should charge you for your life insurance policy. Some of the factors that they weight heavily are:
Are you a smoker? – A smoker may pay greater up to 50% more than a non-smoker. If you smoke, stopping smoking is probably the single best way to reduce your life insurance (and you’ll live longer as well).
Are you overweight? – People who are overweight are more likely to have heart attacks or other problems. Depending on your age and your coverage amount, you could easily pay for a gym membership with your savings from your life insurance policy. As part of their medical screening, insurance companies measure your cholesterol. Don’t just get in shape, eat right also.

Family medical history – This is a factor that you can’t do much about. Insurance companies like to see that your parents lived a long, healthy life. Any significant medical problems, particularly cancer or heart attacks may mean that you have to pay more for life insurance now.
Your lifestyle – If you skydive, own a motorcycle and regularly hang-glide, most life insurance company will charge you a higher premium because you lead a risky lifestyle. Consider giving up some of these things for a little while, and you may not pay as much for your life insurance. Read our section question on What happens if I didn’t tell the truth, or forgot something?
Your age and gender – This is one of those factors that none of us can really do anything about. If you are older and male, you are less likely to live as long as a younger female.
There are other ways to maintain the same level of insurance coverage that you have now, without making any lifestyle changes. In most cases, you will need to obtain a new policy or select a new life insurance companies. Not every one of these options make sense for every person. Carefully evaluate your situation and determine the appropriate course of action.

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