The decision about whether you need life insurance was made for you the day someone else starting depending on you for financial support. While the idea of premature death is scary, neither shopping for life insurance nor the premium you pay should be scary. Consider the following six money-saving ideas:
- The earlier, the better — The sooner you identify the need for and purchase life insurance coverage the better. Why? The chances of a younger, healthier person dying are not as great as older, less healthy people. Life insurance companies historically offer their most favorable rates and coverage limits to people who fit this description. The earlier the better – it's never cheaper to buy a life insurance policy than it is today.
- Know what you want from your policy — There are many different forms of life insurance that offer many different benefits. Some are complex, for example coupling a death benefit with savings and other investment vehicles that accumulate cash value. Others are simple, such as a “Term Life” policy with a death benefit (e.g. 10-year term for a $250,000 benefit). While the idea of a fancier policy may sound good, a less expensive term life policy may be more affordable to help you achieve financial security for your family.
- Ask about renewal — As you get older, your health may deteriorate. This can lead to increased costs or lack of insurability if you have to start the buying process anew. Before buying a policy, ask the insurance company about guaranteed renewability after the initial term ends. Guaranteed renewability may be worth a few extra dollars in the short term because it could save you big down the road.
- Consider purchasing group insurance through your employer — If offered, an employer-sponsored group plan is an excellent way to purchase higher coverage amounts for a significantly lower premium.
- Comparison shop — There are thousands of life insurance companies that would like to provide you a policy. Get quotes to three or more companies and let them duke it out for your business. May the best and lowest policy win!
- Premium rates for premium lives — People who are careful drivers qualify for better auto insurance rates. Similarly, people who live a low-risk lifestyle qualify for better life insurance rates. Maintaining a healthy lifestyle is a fun, easy way to keep costs down.
See how easy it is to shop online for life insurance. Get your free life insurance quotes today!
