Let’s talk dollars and sense. Term life insurance is the cheapest form of life insurance you can find, period. The reason is that competition among insurance carriers vying for your dollars has brought rates down. Also, people are living longer, healthier lives. Here are some tips you should know to getting the lowest rates, thus cheapest term life policies on the market.
1. Shop Around.
Variety is the spice of life insurance and now is the perfect time to shop around to find the lowest rates because prices are at historic lows. Shopping has never been easier from online quoting services. There you will find a side-by-side comparison of the best policy choices in minutes from only top-rated companies. Just so you know, you won’t find cheaper rates on any other insurance website because the policy prices are fixed by the insurance companies. Once you select the policy and price your shopping spree is over. A licensed insurance veteran will help you the rest of the way. By the way, even if you have existing term life coverage but are healthy and younger, you might be able to find lower premiums for better coverage. Seriously, carriers are enjoying big profits and are passing the savings onto you.
2. Don’t Just Live for Today.
The unexpected happens when you least expect it. Tomorrow doesn’t come with a guarantee; it may have an earlier expiration date than you planned for. Life insurance can protect your family and an unpredictable future. If a spouse or children depend on you, make sure they have the financial protection that life insurance provides. The death benefit from a policy you leave can pay off a home mortgage or finance a kid’s college tuition. Don’t wait to search for a cheap term life insurance policy that might define their future. It’s a small price to pay to help you sleep at night and a worthy legacy for you to leave.
3. Get in the Gym and Stay in the Slow Lane.
There is a reason people with healthy, low risk lifestyles pay lower life insurance premiums. Insurance companies want to keep you around for a long time and poor health and poor choices can shorten that life. If you don’t take care of yourself— are overweight, smoke cigarettes, have skyrocketing cholesterol levels and jump out of airplanes— they will make you pay higher premiums to insure your higher risk of dying prematurely. That is, if they insure you at all with those risk factors. Word of advice: ditch the French fries, flush the cigarettes, get on the treadmill to burn off those 20 pounds, and unstrap the parachute. It’s much cheaper to sit safely in the passenger seat of the plane.
4. Honesty is a Virtue.
Lying on your insurance application can be the worst idea you will ever have. Not just because it’s dishonest. Providing fraudulent information to an insurance company will nullify your insurance coverage and leave your beneficiaries with nothing. If the company proves you lied about your health or hobbies, the beneficiaries will not be entitled to the death benefit. That would not be the life legacy you had in mind. Be truthful; don’t withhold important medical information or risky hobbies. These insurance companies have plenty of resources to uncover the truth and if they discover something you failed to disclose, you could have a lot to lose.
5. Figure Out Your Needs.
Do you know how much money it would take to cover your surviving spouse’s expenses until retirement, and/or your children’s expenses until they finish college and become adults? According to a study by industry group LIMRA, 30% of Americans have no life insurance at all. “Trends in Life Insurance Ownership also showed that among those who already own some life insurance, 40 percent believe they don’t have enough. Crunch the numbers and see how much you need.
Using an online insurance calculator is a nifty tool http://www.lifequote.com/Utility/life-insurance-calculator.html to help you figure out your financial needs.