Creative Ways To Save On Life Insurance

by IST

Five Simple Tips to Get an  Affordable Life Insurance Policy

Are you looking to get an affordable life insurance policy? Many people think life insurance is expensive. This is because the cost of life insurance has been increasing over the years. This forces many to avoid getting a policy to protect their loved ones from financial hardship when they’re gone.However, the truth remains that it is still an essential part of a good financial plan for every family.

Well, here’s the thing: life insurance doesn’t have to be expensive. In fact, it can be surprisingly affordable but still offers the same quality financial protection for your loved ones. 

This article is designed to give you simple tips on how you can get an affordable life insurance policy. Find the perfect balance between affordability and protection and save tons of money on your insurance premiums.

Tips to Get an  Affordable Life Insurance Policy

  1. Get Life Insurance Early

For a lot of people, life insurance is something they don’t think about until it’s too late. Many believe that purchasing life insurance when they’re younger is unnecessary. Some people wait until they have family depending on them or are nearing their senior years. But guess what? This is not always the best idea.

Age is one of the major factors that affects how much you are going to pay for your life insurance policy. The older you get, the higher your insurance rate will be.This is because insurers know that with age comes more health risks and increased likelihood of death.

Life insurance premiums rise at least 5% almost every year-  for those who have not purchased yet. When you buy life insurance sooner, the lower cost of your policy is locked in for the rest of your insurance term. 

  1. Get Term Life Insurance

Term life insurance is the simplest and cheapest life insurance policy out there.It provides a death benefit if you die while the policy is active and it expires after a set time.Because you can choose a term length that fits your needs, you only pay for the insurance coverage you want.

Because of its affordable premium and high death benefit, this is a great option if you are  looking to provide your family with a safety cushion in case of sudden income loss. 

  1. Get the Right Amount of Coverage

One thing to note when buying life insurance is that you should always ensure it has enough coverage-enough for your family. Financial and family situations will dictate how much life insurance you need, so make sure you carefully calculate what level of protection would be best before making a purchase.

You may think that overestimating the amount of life insurance you need and buying too much- is the safest way to go. Afterall, when you buy a life insurance policy, you typically have the option to get additional coverage called riders. This includes added coverage for critical illness, waiver of premium, children’s terms and more. However, you need to carefully consider your options. 

Having too much coverage may sound appealing but you may end up getting coverage you don’t necessarily need.Plus, your insurance rate will increase as well. If you’re looking to save on life insurance rates or premiums, it is wise to avoid riders that you don’t really need. 

You can discuss this with your life insurance underwriter to know how much coverage is best for you.

  1. Consider Laddering your Insurance Policy

Laddering or the ladder strategy is a comprehensive plan that ensures you have multiple life insurance coverages in place to address specific needs and periods of your life.It allows you to only buy coverage that will meet with your financial needs during those periods-married, has a child, or retirement.

For example, let’s say you are married and have a child, and your estimated insurance coverage is at $1.5M. As your child grows up, and you grow older, you don’t necessarily need that much coverage. This is because your insurance needs decreases as you age.

So if you were to apply laddering, instead of buying a 30-year term with a $1.5M coverage, you can do this by purchasing policies with different lengths:

  • Policy 1: A 10-year policy of $700,000
  • Policy 2: A 20-year policy of $500,000
  • Policy 3: A 30-year policy of $300,000

As shorter plans come to an end, insurance costs automatically go down.It’s more cost-effective than paying for the whole coverage all at once, as it allows you to pay only for what you need during these periods

It is important to note that  knowing how much insurance you need is required to effectively ladder your policy. Laddering sounds complex but if planned carefully, it can save you tons of money on premiums.

  1. Compare Quotes

It’s crucial to compare quotes for different plans available if you want the most affordable life insurance premiums. Insurance rates and coverage vary greatly from insurer to insurer. If one company doesn’t offer the right kind of coverage that fits your needs, another company probably will- so weigh your options well. Doing so will help you see if the life insurance policy is a good deal and if it will give you the most value in terms of coverage and rate.

Comparing quotes is FREE. Aside from researching online, which isn’t always a safe way. It’s best to do this is through your independent insurance agent. They have access to the rates and coverage insurance companies have- which will help with your insurance options while keeping your information secured. They represent many companies and some provide multi policy discounts on auto and home insurance for having a life insurance policy.

Finding an affordable life insurance policy without sacrificing protection has never been easier, just as long as you do your research using the best agent. You can save money and still get quality life insurance that will ensure financial protection to your family. Buying life insurance sooner than later, opting for term insurance, knowing the right amount of coverage, laddering your coverage and comparing quotes are the simplest ways to lower the cost of your premiums.

If you need help with your insurance questions, feel free to contact us at 763.244.3735. The Insurance Specialists Team to help you find the right insurance solutions for you and your family. You can also get from us by filling out one of the forms below.

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