Life insurance is no one’s idea of a pleasant conversation. Everyone dies eventually, and ignoring this simple fact won’t make it any easier on your loved ones when the time comes. Your life is priceless to those who love you, but it’s worth a price in terms of life insurance. If anything happens to you, your family loses your income from work, from staying home to care for the kids while your spouse works, to adding to the financial woes your family faces due to funeral expenses. Adding a life insurance policy to your finances is a minimal expense, but it’s the most invaluable expense you’ll ever incur because it’s protects your loved ones. Here’s how to find life insurance for the best price.
Don’t Wait to Buy
Most people find their life insurance policies are less expensive the younger they are. Waiting to purchase life insurance is dangerous, because anything can happen at any time. The younger you are, the healthier you probably are. This means lower rates, better policies, and it means you will pay less as a whole. Don’t hesitate to purchase life insurance when it’s something everyone with a family, kids, or a spouse needs as quickly as possible.
You wouldn’t purchase the first car or home you looked at, so why buy the first life insurance policy you see? Compare prices with different insurance companies, and choose three that stand out to you. Call each company and ask for a direct quote so you can see how your personal choices, lifestyle, and health affect the price. Compare the outcome from each phone call to see what you’re getting into with each company, and make your final decision based on the information you garner from these conversations. Oftentimes, insurance carriers lower prices based on specifics you’re unaware of until you speak directly to the insurer.
Shop for Policies Through No-Commission Plans
Shopping with an insurance agent whose only paycheck comes from the sale they make to you is a conflict of interest. This is an insurance agent who has a lot riding on your purchase, and they’re more likely to implore you to purchase more expensive policies, riders, and features than you need. An agent who doesn’t work for commission isn’t interested in overselling you so long as they make a sale and get their job done. This is an agent more likely to offer what you need versus what earns them a bigger paycheck.
Purchase Term Life Insurance
There are two types of life insurance, and they’re called whole life and term. Term is less expensive, but it works well for many insured people. Whole life insurance you for the rest of your life in an account that works a lot like a savings account as well as an insurance policy. You can borrow from it, repay what you borrowed, and it never requires renewal. Term policies are only good for a specific number of years. It’s cheaper, and it still pays out. By renewing it when the term ends, you’re still insured and have little to worry about when you die.
Figure Out What You’re Worth
Spending too much on insurance you don’t need is what makes it something many families can’t afford. If you know your value, you can choose a more affordable plan. For example, a housewife who hasn’t worked a day in her life might not think she’s worth anything. However, she’s home with the kids, running them to and from school, caring for them, feeding them, and staying with them while her partner is at work. This eliminates the cost of daycare, public transportation expenses, after-school care, and the need for babysitters or day camp all summer. She might not contribute financially in terms of a paycheck, but she saves the family significantly. Her policy should cover what she saves the family over the course of her children’s childhoods.
Pay Your Premium Annually
It’s not substantial savings, but policyholders who choose to pay their insurance premiums annually rather than monthly can save a little bit of money. Most insurance agencies allow their policyholders the opportunity to pay monthly, but they charge a fee for that. This fee is anywhere from $5 to $10 per month with most insurance companies. You can save anywhere from $60 to $120 per year by paying your insurance policy once time each year rather than paying that monthly convenience fee.
Smokers are more expensive to insurance than non-smokers, but quitting can help you lower your insurance premiums. If you do stop smoking, the act of lowering your life insurance premium isn’t simple. It requires a visit to the doctor, handing over your medical records to your insurance agency, and possibly going through another physical and exam for the insurance company. Simply telling the insurance agent you quit smoking isn’t enough to lower your policy. Proof is always required.
Major life changes that make a policyholder healthier are always good for insurance rates. By obtaining a note from your doctor that states your new weight compared to your old weight as well as any other health benefits you might have incurred as a result of your weight loss, you could pay less for life insurance. Obesity is a significant problem in America because it leads to more serious health issues. Losing weight and living in a healthy weight range means you lower your risk of heart disease, stroke, heart attack, and even diabetes.
Specific careers are considered more dangerous than others, and they make the individuals who do them more expensive to insure. If your job is dangerous, such as an airline pilot, a member of the Armed Forces, a police office, an ambulance driver, a paramedic, a prison guard, or you are a race car driver, your life is in danger regularly. Insurance companies charge people with dangerous jobs higher premiums because they’re more likely to need a payout sooner rather than later. If you make a career change to do something less life-threatening, let your insurance company know.
Bundle Your Insurance
Most insurance agencies want their customers to bundle their policies through them rather than carrying policies with other companies. While you’re shopping around for insurance, ask what each company is willing to charge you if you bundle all your policies together. This might include life insurance policies, car insurance, or homeowner’s insurance. Sometimes you can get a deal by keeping them all together rather than paying separately for each.
There is no dollar amount anyone can place on the value of your life. Those who love you wouldn’t trade your life for any amount of money, but taking out a life insurance policy for a specific amount is what you can do to protect your family. You needn’t overpay for insurance when there are so many ways to save on great life insurance policies.
Related: Compare Life Insurance Quotes