Life insurance can be pricey if you don’t do it right, so it’s important to follow these specific guidelines.
With these tips, you will be able to save money and still get quality life insurance coverage!
1. Shop Around
Life insurance is a major decision, so it’s important to do your research. Don’t go with the first company you see. You should avoid choosing a company that is offering a special deal for new customers just because of the deal. There are a number of factors that need to go into this decision, so doing your research is essential. Marketing tricks may influence your choice, but you should try to be aware of them. Be on the lookout for deals that seem too good to be true.
2. Use a Broker
A life insurance broker is a great choice. They have access to all of the different companies, their policies, and pricing. What’s awesome about a broker is that they can give you unbiased quotes. If you work directly with one insurance company, they will be too concerned with trying to sell you a package. A broker represents a long list of companies, so they won’t be forcing one particular company and their life insurance plans on you. All of the companies will be fair game.
Jason, founder of CFAinsure.com, says “independent agents are able to give you an unbiased comparison, and this shouldn’t cost you anything, but can save you a ton.”
3. Only Get What You Need
Commonly, people will get a high amount of coverage because it sounds good. In reality, you will be paying for that high cost. You likely won’t even be able to use all of the coverage. By working with a fair and honest broker, you will be able to analyze your situation and figure out exactly what you need. Then you and your family will be protected, but you won’t be overspending on your life insurance. It’s a win-win situation!
4. Get Term Life Insurance
Whole life insurance can be very expensive. You will not end up using all of the benefits you receive from it either, which means you’re wasting your money. When you buy term life insurance, you are buying life insurance for a portion of your life. Most people don’t need coverage beyond their mortgage and kids finishing college. Term life insurance is perfect temporary coverage for those critical years.
5. Stay Healthy Prior to the Medical Exam
As a way to make sure you’re in good shape—or to make sure they know if you aren’t—insurance companies will often give you a medical exam. This exam is pretty basic, but it gives the insurance company some insight on your health. After this exam, the company will choose whether they want to approve you. To help ensure that you pass the exam, it’s a good idea to avoid alcohol and junk food for a few days before your scheduled exam.
If life insurance pricing intimidates you, use these guidelines to keep the prices low. Additionally, this will help you to get only what you really need. Then, you will not be paying for unnecessary coverage that you won’t end up using!