Purchasing life insurance is an essential part of estate planning. A life insurance policy will ensure that your family will be taken care of financially when you pass away, so you want to make sure that you buy the right type of policy. Many people choose term life insurance since you can typically buy a higher policy for a lower price than whole life insurance. If you want to purchase a term life insurance policy and save as much money as possible on premiums, use the following tips:

Get a Medical Exam

Some term life insurance companies require a medical exam, while others will issue a policy without a medical exam. It may seem convenient to purchase a term life policy without having to get a medical exam, but you will pay more in premiums in the long run. When you have a medical exam, the insurance company is able to get a better idea of your overall health and the risk to insure you. If you're in good health, your premiums will be lower. Without a medical exam, the insurance company has a higher risk, so you will be charged more.

Buy as Soon as Possible

When you purchase a term life insurance policy, you will have coverage for a set amount of years. The younger you are when you buy your policy, the less expensive it will be since younger people tend to have fewer health problems. If you have a family, don't put off making your term life insurance purchase-- you can save a lot of money by purchasing it before you develop any health problems as you age.

Understand the Payment Options

The amount you're charged for your term life insurance premiums may depend on how you elect to pay. You may be able to qualify for a good discount if you make one payment to pay your premiums annually. If that is not feasible, find out how much the insurance company charges if you make fractional payments on a quarterly or monthly basis.

Inquire about Milestone Discounts

Most people figure out how much life insurance they need before they begin shopping for insurance. But you may be able to save money by purchasing a policy that is actually more than you need. A lot of insurance companies offer milestone discounts for policies of different sizes. For example, if you need a $200,000 term life policy, make sure you also get a quote for a $250,000 policy—there may be a chance that the larger policy offers lower premiums. Talk with an insurance agent about all of your options before you make a purchase.