Life Insurance Savings: 5 Ways to Save in 2008
(excerpted from INSWEB 2008)
2008 is now upon us! According to USA.gov, the five most popular New Years resolutions were as follows: 1) lose weight, 2) pay off debt, 3) save money, 4) get a better job, and 5) get fit. If your resolution is to save money this year, or you need to save to pay off your debt, one way to achieve this is finding savings on your life insurance policy.
There are five basic ways to save on your life insurance policy: (1) shop around and compare multiple quotes; (2) select the term length that is appropriate for you; (3) buy only the amount of coverage you need; (4) check for price breaks; and (5) buy when you’re young.
Shopping Online and Comparing Multiple Quotes
The amount you pay for term life protection depends on the amount and term-length of your policy, your health and age, and the insurance company you select. Make sure to shop and compare quotes from multiple companies. As you will learn, the cost of the same policy can vary by hundreds of dollars among different insurance companies. Just as your needs are always changing, so are term life insurance rates.
Selecting the Appropriate Length of Coverage
Everyone has different life insurance needs; therefore, a one size fits all solution doesn’t really apply when it comes to term life insurance. While it may make sense for people in their 30s and 40s to secure a 20-year term length, a 10-year term might be more appropriate for someone nearing retirement. Individuals who have 30-year mortgages for example, might consider a 30-year term life policy to ensure that the home is protected throughout the life of the loan.
Determining the Right Amount of Coverage
The purpose of life insurance is to replace financial loss, and what most people should be looking for is “income replacement” for their beneficiaries. In shopping for term life insurance, many agents may try to sell you more coverage than you need so be careful not to get caught up. Financial planners recommend a policy amount at least equal to 6-10 times your annual gross income.
Checking for Price Breaks: Paying Less for More
Insurance companies are known to offer price breaks at certain coverage amounts (e.g., $500,000 vs. $750,000). Many people can actually pay less money for more coverage. Check how little your prices increase when you when you change your coverage to $250,000, $500,000, or $1,000,000.
Buying When You're Young
While your financial needs may be lower at a younger age, the rates are also substantially cheaper when you're young. The best advice is to lock in as much protection at a young age while your health and prices are still good to avoid paying substantially more when a shorter-term policy expires.
Even if saving money wasn’t your top resolution for 2008, saving money on your life insurance policy is easy enough that you can achieve two New Years resolutions this year!
2008 is now upon us! According to USA.gov, the five most popular New Years resolutions were as follows: 1) lose weight, 2) pay off debt, 3) save money, 4) get a better job, and 5) get fit. If your resolution is to save money this year, or you need to save to pay off your debt, one way to achieve this is finding savings on your life insurance policy.
There are five basic ways to save on your life insurance policy: (1) shop around and compare multiple quotes; (2) select the term length that is appropriate for you; (3) buy only the amount of coverage you need; (4) check for price breaks; and (5) buy when you’re young.
Shopping Online and Comparing Multiple Quotes
The amount you pay for term life protection depends on the amount and term-length of your policy, your health and age, and the insurance company you select. Make sure to shop and compare quotes from multiple companies. As you will learn, the cost of the same policy can vary by hundreds of dollars among different insurance companies. Just as your needs are always changing, so are term life insurance rates.
Selecting the Appropriate Length of Coverage
Everyone has different life insurance needs; therefore, a one size fits all solution doesn’t really apply when it comes to term life insurance. While it may make sense for people in their 30s and 40s to secure a 20-year term length, a 10-year term might be more appropriate for someone nearing retirement. Individuals who have 30-year mortgages for example, might consider a 30-year term life policy to ensure that the home is protected throughout the life of the loan.
Determining the Right Amount of Coverage
The purpose of life insurance is to replace financial loss, and what most people should be looking for is “income replacement” for their beneficiaries. In shopping for term life insurance, many agents may try to sell you more coverage than you need so be careful not to get caught up. Financial planners recommend a policy amount at least equal to 6-10 times your annual gross income.
Checking for Price Breaks: Paying Less for More
Insurance companies are known to offer price breaks at certain coverage amounts (e.g., $500,000 vs. $750,000). Many people can actually pay less money for more coverage. Check how little your prices increase when you when you change your coverage to $250,000, $500,000, or $1,000,000.
Buying When You're Young
While your financial needs may be lower at a younger age, the rates are also substantially cheaper when you're young. The best advice is to lock in as much protection at a young age while your health and prices are still good to avoid paying substantially more when a shorter-term policy expires.
Even if saving money wasn’t your top resolution for 2008, saving money on your life insurance policy is easy enough that you can achieve two New Years resolutions this year!
posted by 360training at
3:25 PM
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