Previous Story
11 Ways to Find Affordable Life Insurance No Matter Who You Are
No one likes to think about dying. But it’s an inevitable part of life. No one lives forever and yet the costs of dying can devastate those left behind. Life insurance is meant to cover things like your final expenses and to keep your family living in the same lifestyle they had prior to your death.
You may think that it’s not something you can afford, especially during these rough financial times. Life insurance can be affordable for you regardless of your age, health, or anything else.
Term life vs. whole life insurance policies
One way to reduce the expenses of buying life insurance is to consider purchasing term life instead of whole life insurance. Whole life policies are much more expensive that term life policies. In fact, whole life premiums are ten times more expensive than their term counterparts. That is, for similar coverage amounts. Another thing to consider is that although some people consider whole life policies as investments, they really aren’t investments in any traditional sense. If you make withdrawals that you don’t pay back, your death benefit will be decreased and additionally, there could be tax penalties for withdrawals that are made in excess of the total premiums paid.
However, while the relatively low premiums of short term life insurance can be attractive, it’s almost always better to opt for a longer term policy. Having to renew a short term policy over and over again during your lifetime will result in you paying much higher premiums due to aging and possible illnesses.
Look into low-load life insurance policies
The industry terms “no-load” or “low-load” life insurance policies refer to policies into which fewer expenses have been added. Since a lot of these expenses deal with agent earnings and fees, you won’t find very many of these types of policies being sold. However, it’s worth looking into them particularly if you need a variable life insurance policy. Without these expenses, you earn more of your premium and your policy will increase in value more quickly.
Avoid guaranteed issue policies if you’re healthy
Guaranteed issue policies don’t require you to have a medical exam and applications just inquire about your general health. They’re considered to be riskier than fully underwritten policies because the exact state of your health is not known to the insurer. For this reason, they’re more expensive. People opt for these policies when the state of their health is poor and they can’t obtain life insurance otherwise. If you’re young and healthy there’s no reason to choose a guaranteed issue policy. You’ll be paying a much higher premium if you do.
Do your research online
You can get a pretty good ballpark figure of what your premiums for term life insurance will be by using the various rate quoting services on the Internet. The more information you input into those forms the more accurate your quote will be. You can use this rate as a source when you begin talking with life insurance agents.
Get healthier
Even the most minor health conditions can send your life insurance premiums soaring. Common ailments like high blood pressure, diabetes, and obesity can all label you as high risk for the life insurance underwriter. Likewise, smoking makes you a high risk candidate. The good news is that all of these conditions are reversible with sound dietary choices, quitting smoking and regular exercise. Even if you have these conditions or other illnesses, it still pays to shop around. Different insurance companies have different definitions of what constitutes a high risk.
Only buy as much insurance as you need
How much money would your family need in order to maintain their current lifestyle if you die? This is a good starting place to consider when thinking about how much life insurance to buy. Another thing to consider would be the cost of your children’s education. You should analyze your needs about every three years and more often if your life has changed significantly. Think honestly about your situation and only buy as much life insurance as is necessary.
New rider vs. new policy
It’s almost always better to use a rider to add additional coverage rather than purchasing an entirely new policy. The reason for this is that if you opt for a new policy, all of the cash value you’ve invested in your current policy will be wiped out.
Don’t wait to buy life insurance
Life insurance underwriters want to be sure that you have a good long life ahead of you during which you’ll be paying your premiums and not touching the policy. Consequently, life insurance is always cheapest when you’re young and healthy. It’s therefore best to buy a policy sooner rather than later.
Pay your premium annually
You can save money by always paying your life insurance premiums on an annual basis. Most insurers add fees to your monthly payment for the convenience. Additionally, some insurers will charge a lower rate for those who pay their total yearly premium in full.
Start shopping early when changing insurers
When you are looking to replace your current life insurance policy you should always start searching as early as possible. Hunting for a new insurer takes time and even when you find one, getting the insurance takes more time still. In fact, it can take up to two months and if underwriting needs your medical records, it can take significantly longer. The longer you wait the riskier getting an affordable rate becomes. You can speed up the proceess by using a cheap life insurance search site like bestcheapestlifeinsurance.com.
Consider a guaranteed universal life policy
A guaranteed universal life policy is an attractive and affordable option because it locks in a guaranteed death benefit while allowing you to pay a set premium every month for a fixed time period. It’s especially attractive if you’re over 50 and looking for a premium that won’t bankrupt you with decent coverage. In addition, this policy builds value over time and you can make withdrawals based on its current value or take loans out as well.
Use an insurance broker
Insurance brokers, like mortgage brokers have access to the policies of multiple companies. Rather than going online or visiting a single agent, using the services of a broker can save you quite literally thousands of dollars over the life of your insurance policy. Insurance brokers are knowledgeable professionals who can help assess your needs and recommend the right policy for you at the best rate.
Featured images:
- License: Creative Commons image source
This article was written on behald of Adrian Jennings, a freelance writer based out of New York City.
