Five Tips on How to Buy Cheap Life Insurance

Mike Valles By Mike Valles, 21st Mar 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/rlbdl-fa/
Posted in Wikinut>Money>Insurance

Life insurance does not have to be so costly that you cannot afford it. You can get good coverage for a low price if you know how. Here are five tips to help you get the coverage you need for your family and loved ones.

Introduction

In order to secure the financial future of your family it is important to have a sufficient amount of life insurance. If the primary breadwinner should die, the money from the policy provides the needs for your family for years to come. Life insurance does not have to be expensive, and it is possible to still get the coverage you need for less. Here are five things you need to know in order to obtain cheap life insurance.

Get Best Life Insurance Rates with Good Health

Life insurance companies know that people who are not in good health are a greater risk for them. As a result, this means that applicants that are not in the best of health are going to pay more. Getting the best rates can be obtained if you buy when you are young and healthy.

Having some bad habits can also be detrimental to getting great rates. Smoking and the use of alcohol or illegal drugs will definitely raise the cost of your life insurance premiums, and so will dangerous sports or other risky activities such as hang gliding, parachuting, scuba diving, etc.

Buy Term Life Insurance to Make Your Dollar Go Further

You can definitely buy more coverage if you buy term life insurance. In fact, you can get about eight times the coverage with term than you can get with standard whole life. While whole life agents like to focus on the so-called savings, the truth is that you could get more coverage and more savings if you buy term and invest the difference.

Be Sure to Compare Policy Benefits

Assuming that life insurance policies are the same as another company's products would be a serious mistake – even for big name companies. The truth is that you need to compare several life insurance policies to ensure that you are getting a great deal.

Some things that you want to look for are that the term life policy has guaranteed renewability and that it can be converted later to a whole life policy (if you should desire it). Find out what term lengths are available. Some companies offer term life policies with terms up to 30 years. The length of the term you should get will depend on your need for coverage.

Get Several Life Insurance Quotes

After you look at the benefits from several quotes, then it comes time to look at the price of the premiums. You will only be able to compare accurately if you have obtained quotes for the exact same face value, such as for $150,000. Before you approach a life insurance agent, you want to be sure to have a budget for your insurance. Otherwise, you can be sure that the agent will try to get you to buy more insurance than what you may actually need or can afford.

Check Current Life Insurance Policies

If you have a current life insurance policy, you may want to look it over to see if you can do better. Prices on term life insurance have dropped, partly because life expectancies have increased. As a result, buying a new policy may make more financial sense than holding on to an older one – or, you could simply supplement it with more coverage on a new policy.

Life insurance quotes can be obtained very easily online. Cheap life insurance coverage may even be available without a physical exam, but it will cost a little more. One that requires a physical is apt to give you a better price per thousand dollars of coverage, but below $50,000 coverage most companies do not require it.

Tags

Buy Term Life Insurance, Cheap Life Insurance, Life Insurance, Life Insurance Premiums, Term Life, Term Life Insurance

Meet the author

author avatar Mike Valles
Hi. I have been a full-time freelancer for over 9 years. Most of the material I write on deals with personal finances, education, and news. I am a published author with a book and several eBooks.

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Comments

author avatar madugundurukmini
22nd Mar 2014 (#)

useful life insurance

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