Life insurance is one of those subjects that many people like to completely avoid. It brings up images of crying families and funerals, ideas which many people prefer to avoid. Of course, avoiding the subject won’t avoid the reality, and that is why you should read the life insurance tips below.
There will come a time in your life when, if you’ve been lucky enough to get to that point, you will want to consider long-term care insurance. You should definitely consider it once you hit your fifties. If you become too ill or infirm to continue your current lifestyle, you will want to have a Plan B, so that you can rest assured your care needs will be covered no matter what life throws your way.
To save some money consider switching to annual life insurance premiums instead of monthly life insurance premiums. Some life insurance providers will charge you extra fees if you pay for your premiums monthly, so, if possible, pay your annual premiums in one lump sum at the beginning of each year.
Avoid the whole life policy and go with the term life policy instead. Whole life policies combine an investment with the standard term policy. The term life policy will pay out the amount of coverage that you have selected either in a lump sum or over the course of 20 to 30 years.
Reassess your life insurance policy each year. Do not just buy it and forget about it. An increase or a decrease in your personal worth may cause you to want to reduce or increase your coverage. There are calculators online that can help you decide the amount of coverage to keep.
You need to find out if there is any way to defer a payment on your life insurance policy if you find yourself in a financial bind. There are some insurance companies who are willing to work with their customers and may give you an extension on the due date for your premiums. You will need to talk to your agent to find out.
You need to know what your debts are before getting life insurance. In order to find out home much life insurance coverage you need you first have to know the amount of your debts and how much your funeral will cost. Your life insurance policy needs to be higher than that amount.
To save money on a life insurance policy you should stay away from “guaranteed issue” policies. The reason is because these policies are given to most people who apply, and a medical exam is not needed. Therefore, companies that issue these types of policies have no way of knowing whether you are in good or bad health. Because of these high risks, the premiums you will have to pay will be high.
If you’re choosing a AAA rated company to do your business with, you might just be disappointed. Because these companies are so concerned with keeping their flawless credit ratings, they are extremely particular about to whom they will grant a policy. Basically, you have to be the ‘picture of health’ and youth.
To make your premiums as low as possible you should purchase life insurance immediately when it is needed. The reason is because life insurance is cheaper when you are young and healthy. As a result, if you wait to purchase life insurance when you are older and in worse health, your premiums will be higher.
Calculate the appropriate level of life insurance coverage needed before purchasing a policy. A good rule of thumb is to consider what the loss of your income would do to your family if anything happened to you and insure yourself accordingly. On average, coverage amounts should be high enough to equal about eight years of salary plus any other one-time expenses your family may face.
Understand the terms of your life insurance policy before purchasing, and make sure you are getting the coverage you need. A financial planner can help with this, but you can also educate yourself easily. Understanding the terminology used helps you make better life insurance choices and ensures your policy provides the coverage you are expecting.
Check with your employer before purchasing life insurance from another source. Often various types of life insurance may be available through employee benefit packages. These policies are frequently less expensive because the employer is able to obtain a group rate for employees purchasing life insurance through this channel. These policies frequently can be expanded to include family members as well.
When purchasing life insurance, remember that insurance agents make much higher commissions from whole-life policies than they do for term policies. The cost of whole-life insurance is much greater, thus agents are pressured to push you toward buying these policies. If you know that term life insurance is the best deal for you, stick to your guns and resist high-pressure sales tactics–or buy online to avoid them.
To save even more money on your life insurance premium consider purchasing a policy on-line. While many companies use agents or brokers to sell life insurance, if you are comfortable purchasing on-line you can reap significant savings. With lower overhead costs, companies offering life insurance on-line can offer significantly lower premiums to their customers.
When seeking a life insurance policy, age is not the only important factor. It is important to understand that there is a profound connection between the state of your health and the annual premium that you pay. There is a lot you can do to improve your overall risk levels and ultimately your health. If you smoke ” stop. If you are overweight,then lose weight and achieve a healthy body mass index. If you need meds to control blood pressure levels then take them regularly. These are actions that make you a healthier person in general, but also make you a less risky candidate for life insurance. Less risk means lower insurance premiums. You could be putting thousands of dollars back into your pocket while adding high quality years to your life.
After reading these tips you should feel more comfortable with the topic of life insurance. Hopefully you can now understand just how important it can be for the future of your family, especially if you are ever not around any more to take care of them. These tips should help to prepare you with looking for and maintaining a good life insurance account.