It seems like every year the price of well, just about everything goes up, but wages remain the same. It’s not just groceries, gas and home prices that increase, but also the cost of insurance and other things that responsible adults have to buy.
Life insurance is a great example of something that gets more expensive as you age. Young people often pass on life insurance, especially if they don’t own a home or have a family. Once you get married, all of a sudden it becomes important to make sure those you love are covered financially in the event of a catastrophe.
If you think that life insurance is just one more thing you cannot afford, you’ll be happy to know that you can save on life insurance costs without cutting back on your coverage. Getting affordable, comprehensive life insurance is within your grasp and the 5 tips below will help you locate the best insurance for your family.
Shop around like you would for other types of insurance. Just like car insurance or homeowners insurance, life insurance varies widely depending on who you buy it from. Do a lot of comparison shopping before choosing a plan or an insurer to make sure you’re getting the best rates possible. Go here for a more competitive life insurance quote. Even after you buy the policy, you should keep shopping around every few years. Insurance companies frequently have promotions and can get into a price war which surely benefits the consumer who switches companies at the right time.
Buy life insurance when you’re young. It’s a fact that life insurance is cheaper when you’re young. That’s because theoretically you’re healthier and less likely to die, meaning you’ll pay into the insurance pool for a longer period of time, banking bigger profits for insurers. Buying as soon as you think you may need it can save you hundreds of dollars or more each year.
Make smart health choices to make life insurance more affordable. Smokers, overweight people and those employed in dangerous professions pay more for life insurance. The reason is because they’re less healthy and to put it bluntly, more likely to die. Do what you can do minimize your risk factors to get the better rate. If you’re currently a smoker, quitting will not only save you the cost of cigarettes but will also get you a lower life insurance premium.
Buy Term Life Insurance
Buy term life insurance instead of whole life insurance. Your typical home mortgage runs about 30 years. If you buy a life insurance policy for 30 years you will have the peace of mind that if something happens to you the house and kids will be cared for. Once the house is paid off and the kids are grown, there’s significantly less for a surviving spouse to worry about.
Pay annually rather than monthly. If you pay annually, you’ll probably get a discount. To make this a viable option for you if you’re short on cash, buy your policy right after tax season when you can pay with your refund. Then every year when your renewal is due you can use part of your tax refund to make the payment. Of course you could just save a little money each month to pay for the following year’s premium bill as well.
While buying life insurance isn’t the most fun thing to do and it may make you feel a little depressed to think about your own mortality, it’s essential to have it for your family’s financial wellbeing. If you use the aforementioned tips you will discover that life insurance can be more affordable than you think.