5 Ways to Save Money on Life Insurance
Life insurance can protect your family and preserve your assets in the event of your death. Death may not be a popular topic, but your mortality is something you must consider especially if you have dependents. What keeps some people from buying life insurance is the cost of such policies. Fortunately, there are proven ways that you can contain that cost, enabling you to buy the policy your family needs. We’ll take a look at five ways you can save money on your life insurance.
1. Get what you need. How much insurance should you buy? There are various ways to calculate that figure, but a good rule of thumb is to take your current salary and multiply it by 10. Thus, if you earn $50,000 per year, then a $500,000 policy is a good starting point.
You will want to increase that number if your children are young and you plan to pay for their college education. Moreover, you may want to ensure that inflation is factored in and other expenses such as braces, camp and schooling are covered. If you cannot afford the higher amount, go with what you can afford. Having some life insurance is always better than having no life insurance. Get yourself certified in 70-432 Certification. There is 100% passing guarantee. Buy 70-646 Exam training material to get better exam results using our quality material.
2. Get multiple quotes. You can research your life insurance options online and obtain quotes from multiple insurers. Compare like policies to like policies. For instance, a 20-year term life insurance policy for $500,000 may be the quote that you want to obtain from each insurance provider when shopping for life insurance.
Consider that your insurer will require a health check up as a condition for issuing you a policy. If you have a health problem and your rates are high across the board, you may be able to get a rate reevaluation once your health improves. Check with your insurer before you buy a policy to see if this is possible.
3. Choose term life insurance. You will have a choice between selecting term and permanent life insurance. Clearly, term life insurance offers the lower rates.
When shopping for term life insurance, choose the longest term possible. That way, you won’t be hit with higher premiums when your insurance expires. If you absolutely are set on leaving money to your survivors, then choose whole life insurance, but prepare to pay up.
4. Pay your insurance bill annually. Your insurance provider may give you the option to pay premiums quarterly or even monthly. Some consumers like it that they don’t have to pay the entire amount at once.
However, if you want to save money, then pay your annual premium in one lump sum. You will avoid the cost of monthly billing and some insurers will give you an additional discount if your funds are transferred from your checking account.
5. Opt for a rider if you need more insurance. You bought your insurance when you were young and have the low rates to go with it. You have also just learned that your wife will be giving birth to a surprise later in life child, perhaps even twins, requiring you to update your insurance to line it up with your family’s expanded needs.
You can go out and get another policy, but that move will cost you. Perhaps even dearly. Instead, your current life insurance provider may allow you to obtain additional coverage by purchasing a rider to get what you need. Your insurance agent can advise you on the best course of action to take here.
Buy the life insurance you need and can afford, based on your family’s needs and nothing else. If your employer offers life insurance too, then consider that coverage as a bonus, but don’t depend on it for your primary needs.