How to save on Life Insurance

Do you know how to save on Life Insurance?

Most of us need Life Insurance and some would call it a necessary evil, but it is truly not necessary to pay more than you absolutely have to. These are some useful tips:

Scrutinize your financial position.

Do the math to determine expenses your dependents will be left with, should you suddenly pass away. There is no need to carry the costs for more coverage than you need. A higher payout will need a higher premium.

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Determine your financial position and insurance needs

Rounding up.

When you know the amount of coverage you need, you might be able to pay less for slightly higher coverage. Premiums often decrease when you reach a higher level of coverage. Strangely enough, then the higher coverage could cost less than lower coverage.

Lose weight, stop smoking.

If you were overweight when you purchased the policy, but not anymore, request a lower premium from your insurer. If you stopped smoking since then, do the same. If you are still overweight and smoking, change it or continue paying more than you should.

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Stop smoking and pay lower insurance premiums

Consider the term.

If the remaining term of your mortgage or another loan for which you purchased the life insurance policy, is shorter than the term of the policy, you are paying more than you have to. The longer the term, the higher the premium. 

Find hidden fees and unnecessary coverage.

You could be saving money by paying an annual premium instead of monthly. You might be paying for fancy extras, called riders or add-on’s that you don’t even need. 

Just some examples:

  • Accidental death. The payout will be increased should the insured die as result of an accident.
  • Accelerated death benefit. If the insured becomes terminally ill, he will be able to have a part payout of the coverage, even before death.
  • Waiver of premium. If the insured becomes disabled and are unable to continue working or have been made redundant by his employer, the rest of his premiums will be waived.
  • Disability income. A monthly income becomes available should the insured become disabled.

 

Do your homework, surf the Net.

Buying insurance is no different from buying a car or furniture. Online quotes allow you to compare products and companies. Be sure to compare apples with apples.

Nobody can tell what the future holds, but most people don’t need these extras and it isn’t worth the costs anyway.

 

Ref:

www.money.msn.com