Key questions you should keep in mind as you shop around for quotes include:
- Does the insurance company increase premiums each year? If not, how often?
- Will my benefit level decrease?
- Will I derive dividends from the cash value portion of the policy?
- Will I be able to convert a term policy into a whole life policy if I so want?
- Does the insurance company charge policy fees separately from premiums?
- What is the maximum amount of cash value I can accumulate with the policy?
- Does the insurance company guarantee all benefits and premiums? If not, what part is not guaranteed?
What Are Effective Ways to Reduce My Life Insurance Premium?
You can decrease the premium amount you fork over by following a few measures:
- Stay fit – Consider joining a health and fitness club in your neighborhood or, if you can afford it, enlist the help of a professional fitness coach. Alternatively, you can give into daily walks, say, 30 minutes, in the local park or around your neighborhood.
- Reduce risk events – Lessen the risk level that insurance companies would assign to you. Insurers typically would ask that you undergo a medical exam before giving you a premium quote, and the healthier you are, the lower the premium rate they will offer you – everything else being equal. Besides a medical exam, a life insurance company uses a longevity chart as part of the evaluation process. A longevity chart comprises statistical tables showing mortality rates of people.
- Lessen cholesterol risk by adopting a well-balanced diet.
- Avoid tobacco and other substances that could pose a health hazard to you now or in the future.
- Don’t go solo – You can decrease your life insurance premium if you purchase the policy from the same company that covers you on other risk events. Simply put, buy all your coverage from the same insurer, but make sure the company is financially strong and has a good credit rating. The last thing you want is to entrust your money to an organization that would not be around when you are no longer here. Talk to your insurance agent to have more information about cash you can save by bundling life, property, health and car insurance with a single company.
What Key Things Should I Consider When Buying Life Insurance?
Buying life insurance helps you address various needs, but don’t choose a policy you cannot afford. Before buying life insurance, ask yourself the following:
- Who depends on you and what would be their earnings, excluding life insurance proceeds, after your death? Dependents can be your “direct family,” such as spouse and children, and “extended family,” say, an aunt, uncle, nephew, or niece.
- Do you have other investments, such as property and retirements accounts?
- Would you need life insurance for your entire lifetime or just a specific period, say, 25 years?
- Do you want a disability provision in the policy, so that you get coverage before your death?
- Does the insurance company have enough financial strength to be around when I’m no longer here?