7 Ways to Save Money on Your Life Insurance
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As a mom, keeping your children happy, healthy, and protected should be your number one priority. No matter your circumstance or financial situation, there are things that you can do to ensure your loved ones are kept secure should you pass away unexpectedly, such as taking out life insurance.
Regarded as one of the most significant purchases you can ever make, a life insurance policy will give you peace of mind that your children will be financially supported in the years after your death. To help make sure you get the best plan possible, here are 7 useful tips on finding the best provider, and how to save money on your life insurance.
Compare Deals
The first step in finding a life insurance policy is to shop around and figure out what kinds of deals are on offer. As with any important purchase, it’s best to do your research first rather than choosing the first policy that appeals to you. While you may think the policy has everything covered, you could be missing out on a better offer. A great way to see what’s out there is by pulling in a range of quotes from the various companies out there. All you need to do with these is fill in a few small details and they will do the work for you.
Find a Policy That Matches Your Needs
The main two forms of life insurance are term insurance and whole life insurance. Of the two, whole life insurance is the most expensive. This is because it guarantees a pay-out should you pass at any point, where term insurance tends to be offered at a lower price. Term insurance is only valid for an agreed-upon amount of time, meaning that your insurer may not have to pay out if you pass away after the period ends.
Pick the Right Term
If you plan on taking out term life insurance, it’s crucial that you factor in how long you would like the agreed term to last. The longer the term is, the higher your monthly premium will be. When deciding on what plan is best for you, there are several points to consider. For example, if the purpose of your life insurance policy is to help your children pay off a mortgage, a longer term may be the best option to take.
Insure the Right Amount
It goes without saying that the more you want your insurer to pay out on your life insurance policy, the more money you will have to shell out on your premiums. You need to make sure that you’re covered for the right amount, so it’s important that you take a look at your current financial situation. Determine how much money your family could comfortably live with in the event of your death, and allow this figure to guide your choice.
Don’t Smoke
We all know how bad smoking is for our health and wellbeing, but what you may not realise is how much more money you will need to fork out on your life insurance policy. Insurance companies will base your premiums on how fit and healthy your general lifestyle is, so if you are a smoker, you will be considered high risk. To stop smoking is a great place to start saving on your life insurance premium. If you are having difficulty quitting, you should book an appointment with your doctor, who will provide further assistance and guidance to pack the habit in for good.
Be Aware of Additional Extras
Many insurance providers will try to sell add-ons to their life insurance policies that may not benefit you. They may also increase costs as a result of mitigating factors such as a critical illness, a stroke, or cancer. If you or a loved one have a critical illness, you have a higher chance of paying more for your life insurance. Before you consider any add-ons, make sure you read into how the additional cover can benefit you.
Buy When You’re Young
With the cost of life insurance rising as you age, it’s best to take out a policy in your 20s, rather than leaving it until you reach your 40s. One of the main reasons you will get life insurance cheaper is because insurers will deem you less likely to take out a policy because of your age. No matter how old your children are, it’s important to think about the future rather than putting it off.
With so many life insurance policies to pick from, knowing where to start can be challenging. If you take all the factors listed into consideration, you can make the decision process a bit easier. This can provide a financial comfort blanket to your loved ones in the event of your death.
