life insurance is mandatory for your family’s financial security. However, in today’s financial climate, it’s smart to reduce budget expenditures whenever you can. If you want to reduce the amount of money you spend on life insurance, consider the following points. 1. Avoid purchasing a guarantee issue life insurance policy. Guaranteed issue life insurance policies tend to be quite pricey and with good reason. Companies who sell such policies guarantee that they will issue anyone a life insurance policy, including people who suffer from physical conditions that would not typically be accepted by life insurance companies. So, if you’re in good health, it’s less expensive to find a regular life insurance policy. However, a guarantee issue life insurance policy might be the wisest choice for you if you’re not in good health.2. If you smoke, quit. Underwriters raise the price of insurance by 25%-50% for tobacco users. When you quit smoking and have gone 12 months without using tobacco, you can request that the insurance company remove the extra rating. Doing so will reduce your premiums.3. Shop around. Each company underwrites health concerns differently. For example, well-controlled high blood pressure might not even warrant an extra charge with some companies, while other companies will rate up the policy.When comparing rates, ensure you provide the same health information to each company so the estimates will reflect your True Health condition and can be more easily compared in terms of price.4. Strive for your ideal weight. When shopping for insurance, it can save you money if you’re at an average weight for your age and sex.Each insurance company will rate additional weight differently. After a certain amount of weight, extra pounds will raise the cost of your insurance.If you’re overweight, ask your agent to show you the rating chart. If you’re close to a border weight between categories, you may be able to reduce your price by losing only a couple of pounds before you’re weighed by the company representative.5. Cost isn’t everything. Lower priced policies can actually become more expensive. Companies with an A.M. Best rating of A+ or better may charge more, but those extra costs pay off over the long haul. Here’s why:If you go with an insurance company because it charges less and it goes out of business, then you have no insurance at all. So, even though you’ve been paying for insurance, you could actually lose your coverage and all the money you paid if you seek coverage from a risky company.In the event that a significant amount of time has passed since you’ve purchased a policy from a company that goes out of business, your health may have changed enough to make getting another policy difficult.So, the lesson here is to check out your life insurance company’s ratings in advance of purchasing your policy as one way of ultimately conserving your funds.These are some of the most common strategies that can reduce your costs when you purchase life insurance. If you practice good health habits, shop around, and do business with a reputable life insurance company, you can secure a life insurance policy that both saves you money and provides for your family’s needs in the future.
These were all very good points, but you left out the most important thing... always buy term life only. The more expensive policies, known as whole life or variable life are a terrible waste of money. They are sold as a savings account mixed with the benefits of a life insurance policy. Technically, though, the money is not yours. In an emergency you can borrow the equity you've paid in, but it must be paid back with interest, and the company can take several months to get you the money, which doesn't help in a real emergency. True, if you complete the payment contract, and don't die, you will get back the money you paid in, plus a little interest possibly. If you do die within the covered time period, your beneficiary will get the death benefit, but none of the paid in plus interest amount. At that point, you've just paid a whole lot for what became the same as a term life policy. A better idea is to buy the much less expensive term policy, from a good company as the pp recommended, and invest part or all of the difference in a quality investment plan. In an emergency you can borrow it any time, without interest, because it is yours. If you don't die within the contract term, there is no death benefit, but your invested money is still there. If you do die in the term period, a death benefit is paid out PLUS the investment package is still there. That is more money for your family at a much smaller rate. Crucial, though, is that everyone needs some amount of life insurance.
Well, none. Usually, they just pay out face vaue. If it was a paid in full policy, and the extra "interest" was used to buy extra paid up insurance, it *might* be worth $600 or $700. The insurance company can tell you for sure, what it is worth - you have to call them. But insurance policies are CRAPPY investments. They don't pay out much in interest for the "investment" type policies, and the majority of them, any "savings" reverts to the insurance company when the person dies. You're not getting rich off THIS policy. And a $500 isn't going to pay 5% compounded annually, that's a silly high guess.
I actually regret not getting life insurance at an earlier age. Aside from having more affordable premium, you get to take advantage or maximize your contributions.
Thanks for sharing such important things with me i never know these things before, i quit smoking now. I like healthy lifestyle and now I'm trying to be average weight according to my age. It's really a precious information for me to safe my family life in affordable insurance package.
