If your family and are the main income earner of the family, you do not want to leave them in a position of hardship if anything happen to you. Yet without considering the purchase of a life insurance policy, this is a situation that could become a reality. Here are some things you need to know.
To save money on a life insurance policy you should stay away from “guaranteed issue” policies. The reason is because these policies are for persons who apply, and a medical exam are off the table. Therefore, companies that issue these types of policies have no way of knowing whether you are in good or bad health.
Consider the risk involved in your potential life insurance policy. If you feel comfortable with a high-risk investment as your life insurance, variable or universal policies may be the ones for you.
Life Insurance Coverage
If you need a lot of coverage for a smaller premium, you will probably benefit most from a term life insurance plan. This plan will not build up equity, but will pay out a higher death benefit. They do have an ending date though, thus the title “term life insurance.” Make sure you have other plans in place for when this coverage runs out.
To make your life insurance premiums lower you should improve your health. Losing weight, quitting smoking, and exercising frequently are a few things you can do to make you healthier. Those who are in bad health will pay higher premiums.
Avoid buying expensive riders which are policies that only benefit in a certain situation such as a cancer policy. You are much better served by a policy that covers everything instead of one that only covers one type of illness or accident. Insurance agents may try to sell them because they profit from them but are rarely useful to you.
Decide the best term to take for your insurance. If your children are newborns, a 25 year term policy will make sure that they are covered . If you have a 30 year mortgage on your home, considering making that your term to protect your home.
Buy the right amount of life insurance to cover all of your needs. Skimping on life insurance is not a good idea. Term insurance, especially, is very affordable, so make sure you get as much insurance as you need. For a rule of thumb, consider buying insurance that equals approximately 6 to 10 times your income.