Life insurance is somewhat of a strange concept. It’s the only form of insurance which does not directly financially benefit the person who is insured. Yet life insurance is something which most families own or which they wish to purchase someday.
Before we can talk about simple ways to lower the cost of your life insurance, we had better take just a few seconds to discuss the two basic types of life insurance. When you begin looking at life insurance you will be asked whether you want to purchase Whole Life or Term Life.
If you are only looking at the cost of the premium then Term Life looks like the easy winner, hands down. But there’s a little more to the story than just the initial cost of the premium. A Term Life policy has a limited life. In other words, a term policy expires at some point and if you want your life insurance coverage to continue you’ll have to buy a new policy – at a higher premium.
If your second term policy reaches the end of its term – that is, it expires – then you’ll have to purchase a third policy, at a still-higher monthly premium. So, at a time in life when most people have the fewest resources a term policy will force you to pay the highest price yet for your life insurance.
A Whole Life Insurance policy, on the other hand, lasts your whole life. It doesn’t expire and the premium that you paid on the day you bought your policy is the same premium you will pay for your whole life.
Another advantage of a Whole Life policy is that over time your policy will accumulate a cash value, like a savings account. Many people borrow against this cash value for such things as the down payment on a house, or for a luxury purchase.
With all that said, it is still necessary for you to examine the cost of both types of policies carefully as Whole Life can occasionally be outrageously over-priced in comparison to Term Life so it is necessary to exercise caution if you are looking for a truly good deal on life insurance.
Life insurance is all about providing for your family and loved ones when you are no longer here to do so yourself, and in one sense there is no way to place a price on that type of love and commitment. And yet, from a practical point of view, insurance companies do placed a price on that type of love.
The price they set is known as a premium – and this premium is based on a number of different factors. Fortunately there are several things you can do that will affect the size of the premium that you will need to pay in order to protect your family, and this article will deal with 5 specific steps that you can take immediately which should lower the amount you will be asked to pay for your life insurance.
Combining these 5 ideas can result in, potentially, five times the savings. But if even only one of these 5 ideas can be applie