Life insurance is something no one likes to think about but it’s a necessary expense. Funerals are very expensive, ranging from around $10,000 and higher. It’s something we don’t like to think of but it’s better to be prepared. Survivors suffer enough with the loss of a loved one without the added worry about having to pay funeral expenses. There are ways to save on life insurance so it doesn’t have to be such a large expense that we can’t afford. After all, we really can’t afford to NOT have life insurance on ourselves and our loved ones. Here are some ways you can save on life insurance.
Shop around for the best buys. It’s hard to believe that there are so many different prices for the same amount of life insurance coverage but every company varies so always shop around online as well as with your local insurance agencies.
Buy your life insurance when you’re young. Although young people seldom think in terms of needing life insurance, this is the time it should be purchased because your premiums are going to a lot cheaper for more coverage. The older you are when you get life insurance, the higher your premiums are going to be.
Choose the amount of life insurance coverage you can afford. Although everyone wants to have a lot of life insurance so their loved ones don’t have to worry, only get what you can afford to pay. You’ll only lose money if you’ve paid on it for a few years only to have it cancelled because you can no longer afford to pay the premiums.
Make annual premiums as opposed to quarterly or monthly. When you choose to pay your life insurance premiums monthly, it makes more paperwork for your insurance company so they pass this expense on to you by charging a larger amount.
Quit Smoking and stay in good health. Almost all life insurance companies charge a higher rate if you’re a smoker as well as if you’re overweight. Your life insurance premiums are based on your overall health so the healthier you are, the lower your premiums are going to be.
Find a company that will offer you a guaranteed rate. Many life insurance policies will guarantee you a fixed rate for a certain amount of time as well as guaranteeing to renew you when this time is up.
Choose term life insurance over whole life insurance. Term life insurance is only for a certain period of time as long as you continue to pay the premiums. Whole life is designed to cover you your entire life but the premiums will increase over time. Whole life insurance offers a cash value unlike term insurance but term insurance has premiums that are much cheaper. It’s better to have cheap life insurance you can afford than an expensive policy that you have to cancel.
Consider life insurance through your employer. If your employer offers you life insurance, check it out as the premiums are often very affordable. Sometimes, the employer will cover the cost and give you the option to purchase an additional amount for a very low price.