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How to Get the Best Rate on Your Life Insurance

Guest article | 29 January 2013

Life insurance

Certain factors increase the risk you present...

...and increase the amount of the premiums you pay

When you purchase your life insurance coverage, the rate you pay, or premium, is determined by a number of factors ó not just how much coverage you purchase. Insurance companies assess the amount of risk you represent or the likelihood that you are going to cash out the policy before it matures. Certain factors increase the risk you present to the company and thus increase the amount of the premiums you will pay. However, you donít have to pay high premiums for this necessary coverage, especially if you do some homework before you buy.

Start Early

When youíre young and healthy, you probably arenít thinking about end-of-life issues and how your family will be cared for when you pass ó especially if you donít have a family yet. However, the best time to buy a life insurance policy is when youíre young. Not only are you likely to fall within this standard rate pool, which is the lowest rate class, you can also lock in your lower rate. Even as you get older and your health declines, youíll still pay the lower rate.

Come On, Get Healthy

The best way to get the lowest rates from the start is to be a healthy non-smoker. Being overweight, smoking, drinking alcohol and living an unhealthy lifestyle will be reflected in higher rates. Insurers believe that when their customers lead a healthy lifestyle, they are less of a risk and thus deserve a lower premium.

If you are carrying a few extra pounds, or you smoke regularly, make some lifestyle changes. Lose the extra weight through diet and exercise; in general, you should aim for the weight range that your insurance company considers ďidealĒ for your height. Quit smoking and take steps to be as healthy as possible.

If youíve already applied for insurance and been declined, or received a higher premium quote than you would like, once youíve gotten healthy reapply for coverage. If youíve lost a significant amount of weight, you have a better chance of getting coverage at a more reasonable rate.

Keep Your Insurer Informed

Not only should you ask for a rate adjustment when you adopt a healthier lifestyle, you should also keep your insurer informed of other changes ó such as when you stop engaging in dangerous hobbies or change jobs. Someone who works as a fisherman on the sea, for example, or engages in mountaineering or skydiving on the weekends, is going to be viewed as a higher risk than someone who works in a city office and doesnít have extreme hobbies. If things change in your life, let your agent know, as your reduced risk could translate to a reduced premium.

Only Get What You Need

Insurance experts recommend that customers purchase a life insurance policy thatís equivalent to about 10 times their annual salary. However, how much you need depends on a number of factors, including how much debt you have, how many children you have and how much money your family would need after you pass. If you are young and do not have children yet, you may not need as much coverage as an older person with several children; however, you might want to purchase a larger policy to secure lower rates while you can.

Consider the Company

Each insurance carrier has its own methods for determining how policies are sold. In some cases, you may be able to purchase a policy without a medical assessment by just answering a few questions. Other carriers ask applicants to undergo a comprehensive assessment, complete with blood work. In general, if you donít have to have the assessment, youíll pay more for coverage than if you do, since the carrier assumes a higher risk level.

Life insurance is an important purchase that provides you and your family with peace of mind. While price should not be the only factor in your decision about which policy to buy, there is no need to pay more than necessary. Start shopping early, get healthy and stay informed, and it wonít take a huge bite out of your budget.

About the Author: Mia Davies is a longtime financial writer from Adelaide. She recently switched to Suncorp for her life insurance policy needs.

Disclaimer: The views of authors on our website are not necessarily representative of those views of our website. Articles contain only general information, correct at the date of publication. For advice regarding your own personal circumstances, always seek individual advice from a qualified professional. This article may not be reprinted, reproduced, or retransmitted in whole or in part without the express written consent of Please read the complete Disclaimer here

What does it mean to be a single mum?Of course, the


are the most important thing in a single mum's life. Kids are the focus and always have been. But along with the children, there are other matters that can confuse a single mum's life.


plays a big part of a single mother's life, mainly because this is where a large percentage of single mums get their finances from. Centrelink are the source from where the

single mother pension

, or as it is otherwise known, the single parent payment comes from. The single mother pension is a subsistence amount, but just the same, it is money to live on, and so it is important, no matter if it is called single parent payment, single mother pension or whatever Centrelink welfare classes it at the time

Often, single mums come out of a


or defacto relationship only to find that their troubles have just begun, and find that their first step leads them towards Family Law - it's time to engage a lawyer.
There are more than just Centrelink finance problems to worry about, as mentioned before, but also

child custody

issues. Child custody is something that hits right at the heart of

single mums

. If a single mother's ex husband or ex partner has been a domestic violence perpetrator, the mum may be greatly worried about child custody. They worry that their kids won't be safe with their spouse, who has already proven to be abusive because they caused

domestic violence

, which resulted in a divorce or separation.

Even so,

Family Court

will often still order a form of child custody named

Shared Parenting

. Shared Parenting is a form of child custody division of time or parental responsibility between the parents. Mother's often look for a good divorce lawyer to try to avoid share parenting with an abusive ex-spouse after divorce, however in many cases Shared Parenting is still the outcome after the divorce, no matter how good the divorce lawyers have been. They will often settle for visitation at a contact centre or access centre where fathers or mothers are supervised during child custody access.

Please remember the bigger font words,because we will use it often in our website.