How to Find Affordable Life Insurance

It's easy to forget about the importance of life insurance when everything is going well, everyone feels well and you're finally making a comfortable living. Still, this is precisely the time when it's a good idea to invest in life insurance and to start thinking about how to plan for the future. There are dozens of advertisements for affordable life insurance out there- but how can you know which ones are reliable? How can you save on life insurance without compromising on care and service? Follow this guide to choosing the right affordable life insurance and savor the savings you'll find.

Life insurance costs are dependent on multiple factors including your age, health habits and risk factors. With this in mind, it's important to remember that saving on life insurance is about more than just finding the best deal- it's about changing your lifestyle to create the healthiest possible life. These changes will not only make it possible to find more affordable health insurance- they will dramatically improve your quality of life. Here are some ways to modify your lifestyle that can reduce your life insurance rates by up to 50%:

Before signing on the dotted line..., make sure that all fees are spelled out
  • Quit smoking
  • Lose weight
  • Seek out a 'special agent'- if you have health problems that cannot be solved with behavior modification, look for an insurance agent who specializes in life insurance policies for people with the same problem. These agents will be able to analyze your specific case and offer the best rates possible.
  • Improve your credit history if possible. Oftentimes insurance companies penalize consumers with a poor credit rating. Cleaning up your credit before purchasing life insurance is a good way to get the best rates.

In addition to improving your health, there are many ways to avoid overpaying for life insurance. Most importantly, it is imperative to ask questions before buying. Unfortunately, many insurance agents fail to mention the smaller details that are often overlooked, such as automatic increases in premiums after the initial signup or the fact that you can often save on life insurance by purchasing a more expensive policy. Sound fishy? Many consumers are surprised to learn that as you increase your life insurance coverage in increments of $250,000, the rates go down dramatically. Therefore, if you were considering purchasing a $235,000 policy, it will likely be cheaper to get a $250,000 policy.

Another easy way to find affordable life insurance is to ignore offers of riders on the policy. A 'waiver of premium', for example, is designed to protect you if you become disabled. What most insurance agents don't tell you (and many consumers may not realize on their own) is that if you already have sufficient disability insurance, you should not need to pay up to 10% of your insurance fees for a 'waiver of premium'. Likewise, an accidental-death rider (often called a 'double-indemnity' rider) may sound like a good deal, as it offers your beneficiaries double the value of your policy if you die accidentally. Still, accidental deaths are quite uncommon and paying for this service is entirely unnecessary if your policy will provide a sufficient sum to your family.

In addition to extra fees that are associated with riders, there may be hidden fees in your life insurance policy that you are unaware of. Some companies, for example, charge customers for making monthly payments. Before signing on the dotted line, make sure that all fees are spelled out, and find out if there are ways to reduce these additional fees (such as paying upfront instead of monthly).

Once you've done your research, you may be able to find the policy that you've chosen from a 'low-load' company, or one that takes little or no commission on its life insurance policies. Low load companies offer some of the most affordable life insurance plans on the market, and are ideal for consumers who have an idea of what they want and don't need too much personal attention from an insurance agent.

No matter which life insurance policy you choose, make sure to tell the beneficiaries where the policy is held, even if you don't give them the details. This way, you'll ensure that your investment finds its way to the proper people, which is, after all, why you're investing in life insurance.

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