There are ways to save money when buying life insurance, but do not always involve paying a lower premium immediately. As its top priority, look for a policy that meets your needs. Buying the wrong benefits of a low premium is a loss, not a savings. Beyond that, here are some ways to maximize your life insurance dollars.
Before buying
Once you determine what type of life insurance to buy:
1 Focus on financially strong companies.
Dozens of companies sell life insurance. Stick to companies with high ratings from two or more independent rating agencies. A low premium of an unstable company is not a good buy. See How to choose a life insurance company? for more details.
2 Shop around to get an idea of the premium is likely to pay.
Quote services on the Internet can serve this purpose, or you can ask an agent or broker to get a premium estimate. As part of this investigation, determine what kind you evaluate fit in. Most companies that sell individual life insurance have various kinds-be different from the prices called "preferred (non-tobacco)" "standard (non-tobacco)," "preferred (snuff)," and "standard (snuff) . "A small percentage of people who have health problems or stories to disqualify them, even for the "standard" rates. Many in this group will be offered insurance "impaired risk" or "non-standard" rates.
3 Look into group insurance.
Consider participating in its life insurance program sponsored by the employer, even if you have to contribute to it financially. Employers often subsidize their group insurance costs, so it can be less expensive than individual life insurance. You can get a cover up to a certain level without providing evidence of good health, a plus for some people. You will probably have to pay the premiums through payroll deductions, which can be a good comfort. However, be sure to compare group and individual rates, depending on their age and health status, group insurance may or may not provide a savings. Comparing the group of individual life insurance, remember that if you have more than $ 50,000 group life insurance, tables IRS determine how much it costs to provide the amount of more than $ 50,000 and charged the taxable income of that cost.
4 Take care of yourself.
Find out where the class rate will be grouped and, if necessary, consider some lifestyle changes-not smoke, maintain a healthy weight and exercising regularly, to qualify for a class of more favorable rate.
When you're ready to buy
1 Shop around for a good price.
Life insurance is a competitive business, and you will find differences hundred dollars (for the annual premiums) even among financially strong companies to essentially the same policy.
2 Consider the net cost index.
How can you compare two policies, with premiums that start lower than the other, but later are higher than the other? Or one with low premiums and low cash value and one with higher premiums and higher cash value? Use a standard rate of net cost method for the collapse of these variables into a single number. The lower the number the better, but ignore small differences (because the indexes are approximations based on assumptions, small differences may not indicate real differences in values). The agent or broker with whom you're dealing with, or the company that you are thinking of buying a policy, provide these index numbers.
3 Be aware of premium discounts for particular amounts of insurance.
Most companies offer a discount rate for amounts of insurance provided. For example, you might actually pay a lower premium for $ 250,000 life insurance policy for $ 200,000, or $ 500,000 life insurance policy for $ 450,000 because a discount "kicks in" in the amount of insurance more high.
4 If you are buying a term policy, seeking guarantees of renewal.
A renewal guarantee gives the right to initiate a new mandate after the current one ends, paying a higher premium based on your current age, but without having to undergo a new health exam or submit any other "evidence insurability. "Without the guarantee, you would have to buy a life insurance policy again, and if your health has deteriorated, you may have to pay more or not at all.
EmoticonEmoticon