Many people are looking to trim expenses during these uncertain
times. Perhaps life insurance is one area where you’re looking to
economize. If so, the good news is that there are quite a few ways
to get affordable life insurance.
(Or to save on the coverage you already have.)
Before sharing our best affordable life insurance tips, know that
it’s never a good idea to skip buying life insurance altogether.
Doing so could put your loved ones in a major bind if you and your
earnings were no longer in the picture.
- Opt for affordable term life insurance, at least to start.
There are two main types of life insurance: term life and permanent
(whole) life. Both offer a death benefit if you pass away within the
coverage period, but permanent life also has a cash-value component.
Term life is the more affordable life insurance choice. Term life is a
good option for people looking to get the most coverage for the least
amount of money. People also choose to get a combination of both
to ensure they have a large amount of coverage now (when they
have kids or debt) along with lifelong coverage later on.
- Buy coverage when you’re young and healthy.
The best affordable life insurance is typically available when you’re
young and healthy. By buying early, you may be able to lock in an
affordable life insurance rate. Plus, you won’t have to worry about
being unable to get coverage if you develop a health condition later
on.
- Get quotes from several insurers.
Like anything else in life, it pays to shop around when it comes to
getting affordable life insurance. An insurance agent or advisor can
gather quotes from several insurers. He or she can also help you
compare coverage so you get a great policy at a great price.
- Look into group coverage from your employer.
Group life insurance through a workplace is often subsidized in part
by an employer. What’s more, you can often get a certain level of
coverage without taking a medical exam. Definitely check out any
employer-sponsored group coverage that’s available to you. Just
know that this coverage goes away if your job does, so it helps to
also have an individual life insurance policy that you own.
- Ask about premium discounts.
Some insurers offer premium discounts at certain coverage levels.
So it might actually be cheaper to buy $250,000 of coverage than
$200,000 of coverage, for example. Ask your insurance agent or
advisor about any premium discounts.
- See if you can save by paying upfront.
Some insurers offer a discount if you pay the entire year’s premium
in a lump sum (or in less frequent intervals like twice a year). If your
insurer offers this discount and you have the money, opt to pay your
premium up front instead of paying quarterly or monthly.
- Lock in a renewal guarantee.
A renewal guarantee lets you automatically renew your term life
Policy without the need to undergo a medical exam. You only pay
More based on your age, not because of worsening health. This lets
You keep your affordable term life insurance even if your health
takes a turn for the worse.
- Maintain (or work toward) being in good health.
The best affordable life insurance typically goes to people who are
in good health. And while there are certainly conditions over which
you have no control, there are others that you can control. These
include eating right and exercising to maintain a healthy weight,
limiting alcohol use, managing stress and not smoking or using drugs.
Definitely ask your insurer if you can retake your medical exam if you
improve your health… you’ll often benefit from a lower rate for the
rest of policy’s term.
- Work with a specialized insurance professional if you have
health issues and/or have been denied coverage.
As a general rule, it’s best to undergo a medical exam for life
insurance if you don’t have any health issues. By demonstrating that
you’re in good health, you’ll be able to get the best affordable life
insurance available. That said, there are options if you’re in less than
stellar health or have been denied life insurance. One is to work with
an insurance professional that specializes in higher-risk applicants.
Another is to consider “simplified issue” or “guaranteed issue” life
insurance, which typically let you skip the traditional medical exam
and get life insurance more or less on the spot. Learn more about
these options and what to do if you’re denied life insurance.
- Start small and increase coverage over time.
When it comes to life insurance, something is always better than
nothing. If you can’t afford all the coverage you need right now,
start small. For just $13 a month, a healthy 30-year-old can get a
$250,000 20-year level term policy. With even this affordable life
insurance policy, your loved ones would receive $250,000 if you
were to pass away between the ages of 30 and 50. (And they’d
receive the full $250,000, since life insurance proceeds almost
always pass on tax free.) As you grow your savings and increase
your income over time, you can buy more coverage until you’re
at the level you want.
The best way to explore all the affordable life insurance options out there is to
work with a professional insurance agent or advisor.
- Amanda Austin
https://lifehappens.org/blog/10-ways-to-make-affordable-life-insurance-a-reality/
Hayden Childs
Alabama Licensed Agent
(205) 269-1382
shcmail34@yahoo.com
www.haydenchilds.net
I STILL MAKE HOUSE CALLS!
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