How to Save Money on Life Insurance
Most of us understand why we need life insurance. We know that our families depend upon us for dozens of things, and we want to make sure they could maintain a comfortable lifestyle if we passed away. But even though people realize they should buy life insurance, they put off a decision because they think coverage will be too confusing or cost too much. It can be difficult for regular consumers to know which life insurance policy they should buy when they want affordable rates and secure coverage.
Top Life Insurance Buying Tips
- Term insurance costs less because an insurer only has to assume the risk on your life for a fixed amount of time, and not your whole life. If your need for life insurance will not last forever because you plan on saving money in other ways or paying off your debts, a term life insurance policy may work well for you!
- You can purchase some term policies with a Return of Premium (ROP) rider. This means that an insured person who survives the policy will get all of their premiums refunded. The rider (option) costs a little more, but means a substantial check will come back at the end of the policy contract. Consider paying a bit more per month for 20 years, and then getting a huge chunk of it back at the end of the policy!
- If you want some permanent life insurance to cover you during retirement years, consider mixing 2 policies for the best policy at the lowest price. A younger family may choose a larger term policy for immediate coverage, along with a smaller face value whole life policy that can be paid off over several years. The term policy will cover the young family. The whole life policy, with lower rates at a younger age, can be part of retirement planning.
- Stay healthy. We cannot control every health issue, but most companies offer lower rates for people with good health habits. A normal weight, non-smoker will have a much easier time finding inexpensive life insurance rates than an obese smoker.
- Shop around for the best rates. It is very easy to compare the top life insurance companies in your area with online life insurance quote forms.
The Importance of Comparing Life Insurance Quotes
Remember that life insurance rates will vary by many individual factors. An applicant’s age, general health, zip code, and the amount of life insurance will affect premiums,but do not assume that every company will be about the same price.
This article was written by Barbara Waltz, an industry expert and one of the founders of a well known insurance blog.
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