If you have a family, especially one with minor children, it is very important to have a life insurance policy to protect your loved ones financially in the event of your unexpected death. Many people fear that buying life insurance may be costly and will not fit into their budget, but there are many ways to reduce the cost of life insurance premiums. Use the following tips to save money when buying a life insurance policy:

Buy Term Life Insurance

Whole life insurance is a type of policy that accumulates a cash value over the span of your life time, and is also often referred to as permanent life insurance. While it does have some benefits, purchasing whole life insurance can be quite expensive. When you want to have the protection that life insurance provides your family without spending a ton of money, it is a good idea to consider term life insurance. This type of life insurance is substantially less expensive, and you can choose how long you would like to be covered. When the term ends, you can purchase another policy.

Avoid a Guaranteed Issue Life Insurance Policy

If you are relatively young and in good health, don't waste your valuable dollars by purchasing a guaranteed issue life insurance policy. With this type of policy, you may be asked a few questions about your health history, but there is no physical exam required. A guaranteed issue life insurance policy is considered a higher risk to insure, which equals higher premiums. You are much better off submitting to a physical performed by a doctor in order to qualify for lower insurance rates.

Shop Around

Just like auto insurance rates, the cost of life insurance can vary greatly from insurance company to insurance company. Spending a little bit of time gathering quotes form a few different insurance agencies can help you to compare costs and features of each policy so you can make an informed decision about which one is best for you and your family.

Improve Your Health

Your health can play a big role in how much you will pay for a life insurance policy. When you want to keep premiums down, consider making lifestyle changes that can improve your health. If you smoke or chew tobacco, try to permanently quit. It is also a good idea to lose weight if you are obese, and to try to lower your blood pressure if you have hypertension. Your body and your bank account will thank you for making these changes.