A Quick Guide to Saving Money on Insurance

You can save money on insurance if you know about the types of available options. Here is a guide to help you get the best deal on new insurance purchases.
Cutout of motor, house, and family against green grass background

Insurance helps provide financial support in times of emergencies. There are many types of commonly availed insurances, viz. health, home, life, and auto insurance. You’ve to invest your money to purchase insurance with good coverage. However, you can save money on insurance if you have the knowledge of different types of available insurances and options. Here is a short guide to help you understand how you can get the best deal on insurance purchases. ~ Ed.

A hand putting coin into a blue piggy bank from money saved in insurance

When buying insurance, you want to spend a considerable amount for good coverage.

You might not get the best rates but if you do your homework well, you will realize that there are different ways you can save money regardless of the type of insurance it is.

Read on for tips on how to save money on different types of insurance.


Health Insurance

Your health comes first, and if you have not yet secured a health insurance policy, you should consider doing so as soon as possible.

The cost of health is high and this keeps on increasing every year, but you want to access the best healthcare as possible with little or no out of your pocket money.

Know the Basics

Even before buying any plan, you need to research well and understand the basics of health insurance.

Each health insurance package has its own terms, and until you know how to differentiate what is available to you, you might not make the right decision.

Consider a Health Savings Account

A health savings account is great especially if you want a savings account plan that is tax-deductible.

Health savings accounts in the U.S are only applicable to individuals with a high-deductible health plan, most expenses qualify and it is convenient.

Work With an Experienced Health Insurance Pro

It is also always important to consult a pro to help point you in the right direction.

Sometimes, insurance can be confusing, but an experienced pro will do all the heavy lifting for you and advise you on the most affordable and suitable packages for you.

Life Insurance

Just like with health insurance, a lot of people struggle with choosing the right life insurance packages for themselves. The two major divisions of life insurance are term and permanent life, and you will need to thoroughly research through both of them to make a good decision.

Whether you want collateral for a loan, a retirement plan, or whatever reason you choose to buy a life insurance policy, there are ways you can save and get the most out of your coverage.

That said, read below to see some of the ways you can save money on your life insurance policy.

Ace the Medical Exam

If you want to save money on your life insurance policy, then you have to ace the medical exam. Before getting an insurance policy, you will have to undergo the underwriting process which entails a full medical examination.

Impressive health results are going to earn you a ticket to lower premiums for the policy. Good health is important, so make sure to take care of your body, avoid smoking, and develop a health regimen to help you stay in shape.

Shop Around

Shopping around for life insurance can help you pay as much as 75% less for life insurance. A good rule of thumb before buying a life insurance policy is shopping around to see what different carriers have to offer.

Even if you think you might have a really good deal with the first offer you land, there may be yet better deals out there. Get different options available then make a comparison of the products.

What policy best suits your future financial needs? Is it affordable? How long do you need coverage? Will it fulfill the needs of your loved ones? These are some of the questions you should get answers to before buying a policy. Do as much research as possible, and if you can get a good agent to take you through the process, the more advantages you will have.


Get Term Life

If you are trying to pay less for your life insurance policy, then you should consider getting a term life insurance policy. Unlike whole life insurance that covers you for the rest of your life, term life is temporary in that, the coverage is for a specified period of time.

So before buying a term life insurance policy, you have to choose how long you want the term to be. Also, term life insurance does not accumulate a cash value. Cash value is an amount set aside from the premiums as savings. This is one of the reasons why whole life insurance is expensive and term life is not.

Get What You Need

One of the biggest mistakes people do when getting life insurance is getting more coverage than they need. That is why it is important to assess your needs first before buying a plan.

You don’t want to end up buying a policy with too much coverage than your future needs, because you will be paying unnecessarily high premiums. 

Buy Now

The best time to buy a life insurance policy is now. A lot of people wait until later in life to buy life insurance, then end up paying higher premiums. As long as you are 18 years and above, you can qualify for life insurance.

If you start paying for insurance at a young age, you will pay lower premiums because they often increase the older you get.

Make Your Payments Annually

Another great way of saving money on insurance is by making annual premium payments. There are extra fees paid on top of monthly premium payments, but paying annually avoids these fees.

In addition, you will be able to enjoy discounts of up to 8% if you choose to pay for your insurance policy annually.

Auto Insurance

An adequate car insurance policy is important, but considering the costs of owning a car, you will want to save as much as possible on insurance. And while different factors affect the number of premiums you pay, below are ways you can save on auto insurance.

Research the Different Options

Don’t settle for the first auto insurance option that comes your way, do your research first. Also, the price tag should not fool you into believing that a plan is the best option.

Before purchasing your car, make sure to compare the different car insurance costs because you will not pay the same for a new and a used car.

Ensure a Good Credit History

Some research has proven that individuals with a good credit history are likely to make fewer claims. So, strive to maintain a good credit history because the amount you pay for your auto insurance will also be determined by your credit record.

Always check your credit records to ensure that they are accurate and make corrections whenever an error occurs.

Choose a High Deductible

Paying a high deductible may not seem like a means of saving money on your auto insurance, but it will go a long way to helping you save money on the cost of your insurance.

A high deductible translates to lower premiums, but make sure to have the amount when you have a claim.

Bottom Line

You shouldn’t spend a fortune on insurance if there are different ways you can save your money and still get what you are looking for. It is important to understand what you are buying to avoid future frustrations.

Each insurance package is different, and the amount of coverage you pay for one may not be the same as the next one. Research properly and seek help from a professional if you have trouble getting it right.

Over to you

Did you save money on the insurance that you bought? Share your tips and experiences in the comments.


Disclaimer: Though the views expressed are of the author’s own, this article has been checked for its authenticity of information and resource links provided for a better and deeper understanding of the subject matter. However, you're suggested to make your diligent research and consult subject experts to decide what is best for you. If you spot any factual errors, spelling, or grammatical mistakes in the article, please report at [email protected]. Thanks.

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  1. While earning and busy schedule s people forget to take health insurance,and unfortunately when they get any serious disease, they loose their all hard earned money on prescription. That’s by health insurance is really really important.

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