Life insurance is a much needed financial safety net in a world with so
many unknowns. You spend your life working and saving to provide a
comfortable life for your family and yet all of that can be taken away
in an instance if you don’t protect your investments with life
insurance. If you have already decided to purchase life insurance; good
for you! Here are the top 10 life insurance tips to help ensure that
your life insurance policy gives you all that you need without charging
you a ridiculously high premium.
1. Check out What Coverage You Already Have
If you are employed by a company with 50 employees or more you likely
have some type of life insurance, even if relatively minor, that you
are entitled to. Find out exactly how much that coverage is and then
simply take out a private policy covering the difference. This will
help save you $.
2. Make Sure You Buy Enough Life Insurance Coverage
When purchasing life insurance make sure you get enough to maintain
your family’s quality of living. Most experts recommend purchasing
between 5 and 10 times your annual salary. To get an accurate idea of
what your coverage should be you can also total your annual expenses
and debts, taking into consideration significant future expenses such
as funeral expenses, education or weddings.
3. Shop Around
Never take the first quote that you are given by a life insurance
company. Take your time and review your options. There is almost always
a company out there with a lower premium. Consider online life
insurance companies for even lower rates.
4. Consider Single Life Policies Instead of Joint Life Polices
While joint life insurance policies bring greater discounts for married
couples there is a huge catch. When the policy matures it is not double
the payout, even though there are two people insured. And furthermore,
if one spouse remains, they will have to look for new insurance
coverage because the policy ends with the death of one spouse. So,
stick with single life policies that are less complicated and provide
better pay outs in the end.
5. If You Are Under 50 Opt For Term Insurance
It is not until you are over 50 that life insurance rates start to
climb and you should lock in. For under 50s you can usually get reduced
term rates that give you more flexibility and put less strain on your
pocket. In fact, many financial planners feel purchasing term life
insurance and then investing the savings between it and permanent
insurance provides the best return on your investment in the end.
6. Pay Once A Year Instead Of Monthly
If you pay your insurance premium annually you will save money. When
you have that premium split into monthly payments there is usually a
cost tacked on to cover the cost of administering your payments each
7. Consider Making Lifestyle Changes
If you are a smoker, or partake in seemingly dangerous past times, you
will likely be paying a higher premium than if you didn’t. Weight can
also be an issue. If you are obese or overweight slimming down will not
only see a lower number on the scale but also on your life insurance
8. Tell the Truth
Do not lie on your application to save money. If any details on your
life insurance application are found to be fraudulent your insurance
policy will be cancelled and you will not be entitled to a payout in
the event of a claim.
9. Look At The Company’s History
Some life insurance companies will have a higher insurance premium than
others because they have built up a name for themselves. It is a
tradeoff. Sometimes it is worthwhile paying the higher premium in order
to have some peace of mind.
10. Knowledge is Power, So Do Your Homework!
Learn all about life insurance and the industry jargon used when
talking about it. Armed with this knowledge you will be in a better
position to question your insurer and negotiate the best life insurance
rate you can on QOOQe.