Deciding on life insurance is a big decision. You may feel that you can’t afford to have a good policy, but don’t worry, there are ways to save money while getting the best policy for you and your loved ones. Here are some ideas to help save money on your life insurance.
Permanent or Term Policy: While permanent life insurance is often needed if there are special needs dependants or an intricate estate needs, you can save by getting a term insurance policy. Term policies have a definite expiration date and no cash value element. This makes it less expensive at the beginning but can increase when the policy is renewed. Term policies are for a certain amount of time, between five and twenty. Whole life, or permanent life insurance is for your entire life. This type of policy may be cheaper for you in the long run. It really depends on your needs and plans.
Paying annually and Premiums: Paying annually will save you money as insurers add fees on premiums when they are paid monthly. There are usually discounts for paying annually. Speaking of premiums, selecting a guaranteed level term premium is often recommended. With this policy, the paid premiums do not increase during the entire term.
Stay Healthy, Quit Smoking and Get a Medical: This is no joke. Quit smoking and if you have any healthy issues, no matter how minor, now it the time to disclose By doing so, you will get the most accurate quotes. Be honest so your premiums won’t be effected down the road, and your Financial Advisor can better match you with the right insurer. Quitting smoking will save you money, as smoking has the most impact on life insurance premiums. Stay healthy. Try to maintain a healthy weight, drink little to no alcohol, and stop smoking. Getting a medical will also save you money. Non-medical policies will cost you. Premiums will be higher without the medical exam as insurers need to account for the risk of not knowing your health.
Sooner is better than later: You aren’t getting any younger, and Life Insurance costs go up the older you get. Depending on your health, less insurers may be willing to take you on so it’s better to get Life Insurance sooner than later.
Find that Special Insurance Advisor: Work with someone who can get multiple quotes, and don’t shop brokers. This will save you time because you won’t have to contact several insurance companies to get individual quotes. Insurance rates are regulated, so what one offers you here will be the same everywhere.
There is a policy out there for everyone, and these five simple points will guide you on saving money with your life insurance.