As the economy continues to stagnate, the nation is looking for ways to tighten its collective belt. One place you can free up a few bucks is your life insurance policy. While this type of insurance is an essential part of any financial plan, there are ways that you can cut your costs.

For the majority of Americans, owning some sort of life insurance is a given. Most people don't accumulate enough assets to provide for their family's financial security in the event of a tragedy, and life insurance fulfills that need. It may be costly, but there are some simple ways to cut your costs.

1. Negotiate your rate

Life insurance is based entirely on risk. Teams of actuaries pour over statistics and try to establish the probability of an event occurring-in this case, your death. If they guess right, the insurance company wins. If they guess wrong, the insurance company still generally wins, but not as much.

For your personal policy, you'll find that the rates set by these actuaries are based on fairly stringent standards, but there may be some wiggle room. Don't hesitate to negotiate your rate with the insurance company.

2. Modify bad habits

If you smoke or are overweight, you have two huge strikes against you in the eyes of an insurer. However, you can lower your insurance premium by making some lifestyle changes. Join a smoking cessation and/or weight control program. If you find a way to quit these bad habits, you'll cough less, lose weight, and save money on your premium.

3. Remove any riders

Riders are added to life insurance policies for specific types of events. From accidental death to disability, these riders are created by actuaries who have carefully reviewed the statistics regarding such events. This is a numbers game and, knowing the numbers intimately, they know how to write riders to mitigate the risk to the insurance company. If possible, avoid them in your policy. Instead, focus on carrying enough of the basic life insurance to effectively cover your loved ones.

4. Search for low loads and fees

Life insurance thrives on individual agents selling the products. Much like the mutual fund industry, you can save significant amounts of money by purchasing your life insurance directly from an insurer. There are a number of companies that cut out the middleman.

Regardless of the method you use to buy insurance, be mindful of the fees involved. Some insurers may offer a monthly payment option, for example, but include a surcharge for the convenience. Scrutinize all the costs involved.

In your quest for low-cost life insurance, research the many companies to find those that offer it. Look for the highest-rated company with the most affordable premiums. Scrutinize the costs required by the agent and the policy. Remember, most of us need life insurance. We don't, however, need to pay more than it's worth.