Life insurance is a big purchase and a big decision. You should weigh the different possibilities carefully before you commit to a particular insurance package. Ahead of time preparation is particularly important for life insurance because you will not get a second chance at selecting your policy; it is your family members that will deal with the consequences of your choices.
Save money on your policy by cleaning up your bad habits and improving your health. Your policy will be priced based upon your risk class, which is determined by many different health factors. Losing excess weight, quitting smoking and getting your cholesterol in check, will reduce your premiums.
The most obvious and yet frequently ignored way to get a more affordable insurance policy is to get into shape. Generally, insurance companies will reward healthier people with a better deal since the odds are good that they will live to a ripe old age.
Compare your group life insurance against other policies. Group life policies, usually provided by your employer, may not always be the least expensive option. The rates are set based on averages — average age, average health and other important risk factors that may not apply to you. If you have excellent health, shop around to see if you can get better rates elsewhere.
Consider term life insurance to provide education funds for your children. Especially if you are a single parent, term life insurance is a very affordable type of protection that can provide for college costs and other expenses for your children. Once your kids have finished their education, you can drop the coverage.
When shopping for life insurance, make sure you understand how you can cancel the policy in the future if you so choose. Remember that you might have to cancel your insurance if you cannot afford it anymore. It’s important to know up front what type of penalties you may incur later. It’s up to you to know your options to ensure you don’t pay extra for a policy you don’t even want.
If you do not have any major health problems, do not go with guaranteed issue policies. Getting a medical exam will save you money, and the guaranteed issue policies do not need that, and has higher premiums. You don’t need to spend more on life insurance than is really needed.
When consulting an advisor about a life insurance policy, do not be afraid to ask tough questions. You should completely know all the different policies before purchasing one. For example, you should know if your policy is renewable, and how long the premiums will last. In addition, you should know if there are exclusions. These are important things you must consider before purchasing life insurance.
Because you are providing for your dependents in case of tragedy, you owe it to your family to do your research when you buy life insurance. Life insurance only pays out in tragic situations. You can help ameliorate the pain by learning all you can about life insurance and ensuring that your beneficiaries feel satisfied by the policies you select.