Updated: Apr 11, 2019
Many Americans think that having life insurance be it Term Life Insurance and especially Whole Life Insurance which falls into the Permanent Life Insurance category, is too expensive. This is one of the main excuses people have for not buying life insurance. If you are among the people who think life insurance is too expensive, the truth is that the longer you wait, the more expensive it is going to get. Not only can you probably get life insurance for cheaper than you think, some life policies can make for a good investment or a nice forced savings account.
Take a look at some of these tips so you know how to save some money on either Term Life Insurance or Permanent life insurance policies.
1) Select what is best for your needs
Term life insurance is a policy with a set term limit on the coverage period like 10, 20 or 30 years. When it expires, it is up to the policy owner to decide whether to renew the term life insurance policy or let the coverage end. Often times, this policy offers a fixed death benefit and premiums that are typically lower than whole life insurance. However, whole life and universal life policies can offer benefits that term life policies don’t have. The best way to figure out what’s right for you is to meet with your agent and get all of your questions answered.
2) Buy it now and buy in bulk
Insurance companies consider age and health conditions as you apply for coverage, so it is better to buy the policy now that you are younger to lock in a good rate. Also, buying life insurance with a higher face amount or death benefit amount will give you a favorable cost-to-benefit ratio. This is because once you buy more coverage, its cost-per-thousand dollars of face amount will decrease.
3) Take the life insurance medical exam
When applying for life insurance, it’s pretty likely that the company you’re applying with will want you to take a medical exam. The exam aims to assess any health conditions that could negatively affect an applicant's life expectancy. Companies may offer life policies that don’t require a medical exam, but the rates will be higher. If you want to get the lowest rates, you’ll need to prove that you’re healthy.
4) Know your options and shop around
Different insurance companies offer varied insurance products and policies. It is best to shop around, get quotes from various companies and carefully determine which of them would give you your money’s worth. Although advertisements are quite persuading, it is important that you decide which one to choose based on your insurance needs. An important thing to keep in mind is there are certain riders such as critical illness, terminal illness, ROP, and chronic illness riders that can increase your policy monthly cost but can help you access money from you policy should you suffer things such as a heart attack, cancer, stroke, but survive as most companies only pay if you pass away.
5) Consider Simplified Issue "Simplified issue"
Means exactly what is says. Your application consists of answering a few questions about your medical history rather than undergoing a medical exam. If you are in relatively good health but may be a few pounds over your ideal weight it may be a good idea to go with this option. It's usually offered for Term Life Insurance policies but is also offered by a few life insurance companies for Permanent life Insurance plans.
6) Consider "Guaranteed Issue"
Older life insurance applicants or if your health is not excellent, you may be interested in guaranteed issue life insurance. "Guaranteed issue" means you don't have to answer any medical questions or go through a medical exam. You qualify for coverage, regardless of your health but its high cost and limited coverage may not be worth it for everyone so make sure to weigh your options carefully but if you don't have at least $5,000 designated specifically for final expenses you need to seriously consider a "Guaranteed Issue" policy as it's always easier to make monthly payments on higher expense items then to pay the lump sum.
There may be other factors you should consider when buying life insurance, so get an independent life insurance agent in your corner who can do the shopping for you. Vianca's Insurance and Financial Services can help you with your insurance needs through excellent customer relations and providing you customized insurance at lower rates. Contact us today by calling or texting (619) 799-9443 or visit our office.