Thinking about death is somewhat morbid, however this aspect of life should be considered and decided upon early on if your main goal is to secure your family’s financial future. Let us admit to the fact that each and every one of us will have to face death sooner or later. It is that one thing in our lives that is certain, and preparing for it by purchasing life insurance is not grim, but being realistic instead. If you still do not have insurance, now is the perfect time to learn about tips on how to pick life insurance. Life insurance policies are not only for risk protection, but they can also pay for debts, cover for education, medical expenses, and burial expenses.
However, what many do not know is that a basic life insurance policy is usually not enough. In order to fully secure your family’s future, you will usually need more than one coverage to cover all of your fundamental needs and that of your family. But we do know how much insurance cost these days, so those who seek coverage will naturally want to discover affordable life insurance rates. In this article, we wish to guide you on how to pick life insurance policies and enumerate ways on how to save on life insurance.
An affordable life insurance can be possible if you know the things that you need, the factors that affect premium payments, and where you can get an insurance policy that is not only affordable but is more than able to provide you with sufficient coverage too.
How Affordable Should your Life Insurance Go?
When it comes to looking for affordable life insurance rates, consider how low should you go? Keep in mind that the lower premium payments are, the lesser are the benefits and the lesser is the resulting face value or policy amount. Thus, you need to consider a few aspects such as debts or age of your loved ones among others.
Although not a pleasant thing to do, you should think ahead and asses what your family might need in case you suffer from premature death. This is especially true if you are buying term life insurance as this delivers pure death benefits only. Some say it’s a responsibility to care for your family after you pass away while others say its gives them peace of mind to purchase life insurance. Regardless of your personal reason though, you should think about a reasonable policy amount that can pay off all death-related expenses, personal debts, and financial obligations 10, 20 and 30 years from now. This would ensure that your loved ones will not be left with debts which they cannot afford to pay on the long haul. A mortgage for instance features high interests and total balance amount that can leave your family suffering for many years to come if you have not made the right decision of purchasing a term life insurance or a whole life insurance for financial security of your loved one and family.
You should also consider the age of each and every family member, particularly your children at the time of the purchase of your life insurance. If your children are still young, an affordable life insurance should be able to cover for education and medical care. These things might not be accessible to them if you suddenly pass away.
What Makes Insurance Affordable?
Here are some factors to consider when looking for an affordable life insurance:
How long do you need insurance? Generally, the longer you pay, the more expensive the insurance will be. So in order to get an affordable life insurance, consider a shorter term especially if you only need to be insured for a short period. For instance, if you only need to be insured until your children graduates from college or until the mortgage is paid up, you may want to consider a 20 year term insurance instead of a more expensive whole life insurance.
Most life insurances have cash values and other investment vehicle riders. Although these are great benefits to consider, they also cost more. A cash value insurance or permanent life insurance costs more than a term insurance. However, before you say no to a benefit or insurance rider, carefully weigh the pros and cons because most investing vehicles have a higher rate of return than other investment options that can be available to you.
• National Average Price
According to a recent report made by the Census Bureau, Americans are living longer than the previous years. Since the year 2000, the mortality rates for the country have also decreased. These facts could only mean lower quotes and average premium payments. So if you get a quote that you think is still too high, it might be a good idea to discuss mortality rates with your agent in order to achieve a much lower quote.
• Excellent Health History
Even if you are in your 30s or 40s you can still get an affordable life insurance if you have a spotless medical record. The reason behind this is that a healthy person is considered to be a low risk by insurance companies and will be approved for lower premium payments. Be sure to point this advantage to your agent when you think you still haven’t been offered a reasonable quote.
• Decreasing Life Insurance
A decreasing life insurance policy is more affordable than a traditional life insurance and this is best for individuals who are concerned about leaving a mortgage behind when he passes away. This is however, only ideal for those who have another life insurance but not ideal for those who are only seeking for a basic life insurance policy.
When comparing between insurers or life insurance rates, make sure you compare apples to apples and not oranges to apples. Compare quotes with the same policy amount and benefits. It can be hard to get as many quotes and information as possible especially when you do the traditional knock-on-every-insurance-company method. It may be better in your case to work with an agent or a website that is connected with different companies and can obtain the quotes for you. With this method, you might need to provide a profile containing medical records and personal information. This is undoubtedly the most convenient way to get as many quotes as possible and make speedy comparisons too.
Getting affordable life insurance is still possible nowadays. You just have to become familiar with the factors that typically affect premium payments and use them to your advantage in dealing with an agent or insurance company representative. With the right, you can intelligently talk your way through getting an affordable life insurance with the right benefits and adequate coverage.