1. Don’t buy life insurance if you do not need it. The purpose of life insurance coverage is always to replace your income if you die before accumulating sufficient resources to make life insurance unnecessary. So, for those who have someone dependent upon you to earn some earnings during a period of time, life insurance could be the way to go. On the other hand, if you are single without any loved ones or even retired and living on investments or even retirement income, you probably don’t need life insurance coverage.
2. Buy cheap term life insurance. There are 2 types of policies: Term as well as whole life (or even permanent or cash value). Term is actually pure insurance for any set period of time, 10, 15, 20, or 30 plus it only pays a death benefit. Whole life, on the other hand, may provide dividends and interest. Because there are no dividends or interest involved, term insurance is actually less expensive than whole life.
3. Obtain inexpensive group insurance using your employer. Some companies provide free life insurance as an employee benefit. In some instances, the business may offer a designated quantity free as well as the staff has the option of buying additional coverage. As this is group coverage, the premiums are usually real low and it’s a good deal for that employee.
4. Check your credit score before you apply. In case there are problems, clear them up before you apply for insurance. Otherwise, you could wind up either being rejected coverage or even charged an increased premium.
5. Quit smoking. In addition to saving $1800 each year (a pack daily at $5/pack x 365 days), you will also save money on life insurance premiums. Most companies impose double the amount to insure a smoker as they do a nonsmoker.
6. Make much less premium payments. The actual fewer premium payments you make in a year, the lower your own annual premium. Several companies add just as much as 20% to the yearly premium if you make monthly premiums. You can reduce the total premium by paying every quarter, semiannually or perhaps yearly.
7. Get free life insurance quotes. You can find over 1500 life insurance companies. Premiums differ by 100’s of dollars for the similar quantity of coverage. Including, for $100,000 worth of term life insurance for any 35-year-old male, I recently discovered yearly premiums that range from $886 to $2194.
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