Don't drop your life insurance

Drop the riders

One of the fastest ways to lower your life insurance premiums on permanent and term policies is to drop policy riders. Dumping pricey add-ons such as waiver of premium or accidental death and dismemberment riders can substantially lower your premiums. But the amount varies between companies and policies, says William Rowan, founder of the term life insurance rating site eTermLifeInsurance.net.

"You have to work with an insurance agent if you're thinking about dropping riders," says Rowan, adding that some companies allow policyholders to drop certain riders. If you change your mind later, you may be able to add certain riders back without additional medical underwriting.

Before letting go of riders, Rowan says policyholders should ask their provider how much the move could lower premiums and how easy it would be to add riders back on later.