Whether you’ve just gotten married, thinking of starting a family or planning for your retirement – you’ve probably given a thought or two to purchasing life insurance. In order to financially protect those we love, it becomes clear that buying life insurance is the best way to prepare for the inevitable. Whether you want to take care of your funeral expenses, pay off the balance of your mortgage or plan for the financial security of your spouse and family, having a good life insurance policy in place will provide much more than just peace of mind.
Best Ways to Save on Life Insurance
Some things to keep in mind when buying life insurance can include the amount of coverage you need. Most industry representatives suggest purchasing five times your annual salary in life insurance. This will help to cover many costs of your estate and ensure that your family maintains their level of financial security.
Buying more insurance coverage than you need, will only result in a higher premium, which may or may not be a problem for you. If you’re in good physical shape, avoid guaranteed issue policies. Because they don’t require a medical exam, they cost more. If you’re healthy you’ll get a better rate if you choose a policy that requires a medical exam.
Of course, if you’re trying to save on your policy then be sure to look into term insurance plans first. Offering the best coverage for the money, term policies won’t allow you to build up any cash value – but many experts suggest buying term insurance and investing the difference. One of the best ways to save on life insurance costs is to purchase a joint policy for you and your partner. Many companies will lower the premium by up to 15% for a joint policy compared to two individual ones.
photo credit: Tanya Ryno