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Fact #1: Almost everyone should purchase life insurance
There are very few individuals who don’t have to purchase life insurance. For the majority of people, life insurance protects them and their family. It will ensure that funds are available to cover any expenses such as funeral and legal expenses or to pay off any outstanding debts. life insurance can also be used to offset the loss of your child’s or spouse’s income, to leave money to a charity or extended family or to establish a trust fund to save for your children’s education or future. Fact #2: Purchase the Most life insurance At the Lowest Price Although there are many different life insurance policies available, term life insurance is one of the least expensive. It can provide you with the highest amount of coverage for the lowest cost. Even though there is no savings or investment component, you can invest the difference. Fact #3: Purchase Only the Insurance You Require You should always make sure to purchase enough life insurance to protect you and your family, but there is no reason to purchase unnecessary coverage. This will only increase the cost of your premiums. This is why it’s important to review your actual needs before you purchase any type of life insurance policy. One general rule is to purchase 5 to 10 times more life insurance than your annual pre-tax income. Fact #4: Save Money by Purchasing a Joint Policy If you need to purchase life insurance for both yourself and a partner or spouse, don’t purchase two separate policies. You can often buy one joint policy which will cost you much less than the coverage provided for two single life insurance policies. In fact, you may be able to save as much as 15 percent by covering two people with one policy. Fact #5: Don’t Buy A Guaranteed Issue life insurance Policy If You’re Healthy Many people purchase guaranteed issue life insurance policies because they don’t require a medical examination. They are available to anyone, regardless of their health. However, this also means that the premiums are much higher than term life insurance for the same amount of coverage. Obviously, purchasing a guaranteed life insurance policy is better than not having any insurance coverage, but you can save money by choosing a different type of insurance policy if you are healthy. Fact #6: Don’t Choose A Monthly Payment Plan You can save money by paying your annual premium in a lump sum, rather than paying monthly. Almost every life insurance company will charge you more to cover their administration costs to establish a monthly payment plan. Fact #7: Don’t Rely on Workplace life insurance Even though your employer may offer life insurance coverage, you and your family may not be adequately protected. Make sure to find out exactly how much coverage you have with your employer-paid life insurance policy. If this isn’t sufficient to protect your family without your income, be sure to purchase additional life insurance coverage. Fact #8: Learn When to Purchase life insurance Important milestones in your life are often a good time to purchase life insurance. These may include losing or changing jobs, purchasing a home, having children, getting married, retiring or starting your own business. Make sure you don’t procrastinate and purchase life insurance as soon as possible to protect you and your loved ones. Fact #9: Learn What Factors Affect Your Premium life insurance companies use many different factors to determine your risk of death, illness or injury, and therefore the rate of your premium. For example, your age, hobbies, lifestyle, health status, credit history and occupation all affect your premium rate. You can sometimes lower your premium by altering your lifestyle, improving your credit score, giving up dangerous hobbies or quitting smoking. Fact #10: Be Sure to Compare Rates Quotes You may be surprised at just how much prices can vary, depending on the different life insurance providers. That’s why you need to compare rates quotes from multiple insurers. You can accomplish this task quickly and easily by comparing rates online from the convenience of your own home. Just make sure you compare the same coverage options to find the best deal on life insurance. |
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