Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance agency where you can get life insurance on your terms. I’m Jeanna and I’m Natasha. Today’s question is: can I save money paying my life insurance premiums annually versus monthly? Yes, you can save some money each year if you choose to pay your life insurance policy premiums annually. The frequency in which you pay is called your mode of premium. Life insurance premiums can be paid annually, semi-annually, quarterly, or monthly. The most common mode is monthly. Whether you pay monthly or annually is up to you and there are pros and cons to each. Paying monthly is easier to manage because they’re smaller payments, however, the insurance company has to process this payment each month so there are more administrative fees involved in paying monthly versus annually. Paying annually may not be feasible for all budgets but because there are no monthly administrative fees you can save money year-over-year. Since there is less administrative work involved, life insurance companies provide annual payers a discount. Depending on the insurance company, this discount is usually about 3-5% While 3-5% may not seem like much, it does add up. For example, a 45-year-old male paying $175.22 each month for his United of Omaha 30-year, $1,000,000 life insurance policy could save over $100 each year if he switched to an annual payment. If you go to Quotacy.com and run a term life insurance quote, determining your potential annual payment is not as simple as just multiplying the monthly quote by 12. Your annual payment would actually be less than the calculation because our online monthly quotes include the extra fees. To see annual estimates keep moving through the quoting tool and you can change your quote to annual before applying. Now you may be wondering: if I pay annually and die soon after I make a payment, does the insurance company just get to keep that extra amount? For example, let’s say your policy’s annual premium due date is March 1st and you die April 1st. Many states actually require insurance companies to return what is called unearned premium. In addition to paying a death benefit check to the beneficiaries another check would be sent which would be the refund of the portion of unearned premiums. And even if you live in a state that doesn’t require this, many life insurance companies still return the premiums as a courtesy. When you apply for life insurance online through Quotacy you can choose whether you want to pay monthly or annually. If you change your mind throughout the approval process just let your Quotacy agent know and they can update the insurance company. Thanks for watching. If you have any questions about life insurance, make sure to leave us a comment. And if you have any questions regarding today’s topic, check out the blog link posted below. Otherwise, tune in next week can we talk about how using tobacco affects your life insurance costs. Bye! Thanks for sticking around. We’d appreciate it if you Liked the video and hit that fancy little Subscribe button to see us every week. Bye!