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The majority of individuals will end up buying some form of life insurance at some point in their life. Perhaps you purchase life insurance when you get married, buy a new house, start having children, start your own business or decide to retire. life insurance can protect you and your loved ones financially and provide you with peace of mind.
The problem is being able to afford life insurance coverage. Have you procrastinated purchasing life insurance because of the cost? If so, find out some easy methods that can save you money on your monthly or annual premiums and help you find the best rate: 1. Select a Term life insurance Policy – Term life insurance offers the highest amount of coverage for the lowest amount of money. There is no savings or investment component with term life insurance. However, you can pay less for a term life policy and then invest the difference it would have cost you to purchase a whole life policy. 2. Purchase Only the Insurance You Require – Obviously, you want to ensure you have sufficient life insurance coverage. However, many policy holders end up purchasing unnecessary coverage that increases their annual premiums. To prevent this common mistake, review your particular insurance needs before you purchase any type of life insurance. To simplify the process, ask yourself why you want to purchase life insurance. Is it for any of the following reasons: * To pay for the outstanding balance of a debt such as a mortgage loan * To offset the loss of your income * To pay for the education of your children * To pay for immediate expenses such as funeral, legal and burial costs By determining the goals you would like to accomplish with a life insurance policy, you will be able to purchase the right amount of coverage. Many experts in the industry recommend that you purchase coverage that is 5 to 10 times higher than the amount of your annual pre-tax income. 3. Skip A Guaranteed Issue Policy – In most cases, you should avoid purchasing a guaranteed issue life insurance policy. Although they are convenient and don’t require you to undergo any medical exams, they cost much more than regular policies. If you are healthy, you can obtain a much lower rate by purchasing life insurance that requires you to undergo a medical examination. The only exception is if you are suffering from serious health problems or have a pre-existing medical condition. If that is the case, purchasing a guaranteed issue policy may be the only way to obtain life insurance coverage. 4. Consider A Joint Insurance Policy – If you are married and want to obtain life insurance coverage for both you and your spouse, consider purchasing one joint policy. This will cost you less – approximately 15% less – than buying two individual policies for the same amount of coverage. 5. Make A Lump Sum Premium Payment – If at all possible, pay the entire amount of your annual premium with a lump sum payment. This will cost you less than establishing a monthly payment plan. Most insurance companies charge administration fees when you pay your premiums monthly. 6. Compare Rates Quotes – The cost of life insurance can vary greatly, depending on the insurance company. That’s why it’s important to compare rates from multiple companies before making your decision. Nowadays, you can quickly and easily obtain instant rates quotes online. Just visit the company websites for several insurance companies so you can find the best deal. 7. Inquire About Coverage Increments – Although you should only purchase the amount of insurance coverage you need, there is one exception. Many times, insurance companies will charge policy holders a little less to purchase a policy with a slightly higher amount of coverage. Therefore, be sure to ask any prospective insurers about the cost for the next increment of insurance coverage. For example, you may end up paying less to purchase $250,000 of life insurance coverage than a policy with a $200,000 limit. Hopefully, the 7 tips above will help you find the best deal on life insurance. Be sure to contact us if you have any questions about life insurance coverage or wish to obtain a rates quote. |
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