5 Tips For Low Cost Life Insurance
Low cost life insurance isn’t hard to find if you know where to look. Getting a life policy is one purchase vital to the financial health of your family. The main factor that deters people to buy life insurance is cost.
Here are 5 Tips to getting Low Cost Life Insurance
1. Know how much coverage you need
People don’t have a finite amount of how much life ins they really need.
Add up the following:
- Mortgage Payments / Housing
- Daily Living Expenses (Food/Clothing/Gas/Electricity/Water)
- Educational Expenses for the kids (college)
- Childcare Expenses for a certain number of years
Now span these monthly expenses out for a 20 year term or 30 year term. After that period of time your kids will be working and no longer dependent on your income so you will no longer need coverage.
2. Get Term Coverage
This reemphasizes point #1. Is Life Coverage supposed to be permanent? ABSOLUTELY NOT. It is needed to protect the family in the loss of the breadwinner or the income provider. You are protecting the dependents in the family which are the kids / children who are dependent on your income. When they finish college and enter the workforce they can create their own income and there is no longer a need for life ins.
Besides, Whole life Ins is astronomically more expensive. Do not tie an investment with a life policy either. Keep investments and insurance separate!
Buy Term Ins. By doing that you will have already cut your premiums by 70%!
3. Buy in Tier Amounts
Their are different Tier amounts for Life Ins. It becomes cheaper as you purchase higher amounts of coverage. For example, for Term Ins, $100,000 to $249,999 you would be paying $1.02 per $1000 of coverage while for $250,000 to under $500,000 you would be paying 92 cents for every $1000 of coverage. Almost a 10% in savings for knowing this!!
4. Skip the No Physical Exam Life Insurance
There are some companies that allow you to purchase a policy without having you get a medical exam. Sounds great but you are limited in your coverage, the premiums are much, much higher AND you are limited in coverage amounts.
The Medical exam takes only 10-15 minutes and you can set the time of your appointment and place as well.
5. Compare Life Insurance Quotes
There is no doubt about it. By going to a comparison shopping site you force insurers to provide their lowest prices on term life coverage just to get your business.
They do not know what other insurers will quote you so they must be transparent in their pricing. Make sure you take full advantage of this.
Source : http://ezinearticles.com/?5-Tips-For-Low-Cost-Life-Insurance&id=3676544