Life insurance is something most people do not think much about until they start a family or buy a house and suddenly realize they are grown-ups. When you have got a spouse or kids, you need to make sure they will be financially secure if you are not around without diverting too much money from other goals like retirement or college savings. Finding a cheap life insurance policy that offers the right amount of coverage is a main concern of any first-time buyer, as well as those simply looking for a better rate.
Here are the two most basic keys to getting cheap life insurance:
1: Get several quotes
With most purchasing decisions, finding many options will give you an edge. Most people do not bother obtaining multiple quotes because it is time-consuming. However, using an online life insurance quote tool is the quickest way to get quotes from several reputable insurers at one time.
2: Avoid riders and additional insurance
If your bottom-line goal is to find the cheapest insurance possible, you will want to say no to any add-on insurance or policy riders. Examples of add-ons include the option to purchase child policies or more insurance at a future date without going through the medical exam process again. You can think of riders as à-la-carte options to super up your policy. Riders can be purchased to accelerate your death benefit and pay you out for medical expenses if you have a terminal illness but have not passed away yet. Term conversion is another rider that gives you the option to convert your term policy to a permanent (whole life) policy.
3: Say no to one-company local agents
Experts are available to help you through the process of purchasing life insurance and many of the largest insurance companies have their own networks of agents. If you need the human touch, avoid one-company local agents because they usually represent the interests of their own company which essentially lowers your options. If they happen to represent the cheapest and the best life insurance company, that’s another thing.
4: Do not wait
Generally speaking, the younger and healthier you are, the cheaper your insurance costs will be. If you are in your mid-20s and you are thinking about lifestyle changes like marriage and kids, it can pay off to buy a policy now rather than waiting. The biggest reason is that you never really know how your health will change at any time.
5: Check the financial stability of the insurer
Cheap life insurance can be a very bad deal if the insurer is not financially healthy enough to pay out when the time comes. After you get a few online life insurance quotes, always check the financial reputation of the insurer so you do not pay premiums for years only to find out the company cannot pay out any claims. A.M. Best is an insurance rating agency and provides up-to-date information on the financial health of most life insurance companies. Use them to check on a company, especially if you have not heard of them or if they have started operations within the last 10 years. More insurance UK: http://www.insurancehero.org.uk/
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