Key Tips When Purchasing Term Life Insurance
Purchasing a term life insurance policy does not have to break the bank and most people realize that term life insurance is the least expensive type of life insurance. What many do not realize, however, is that it is possible to take the low term life insurance rates and make them even lower. If you follow a few general guidelines, you may be able to lower your life insurance cost.
Be Careful of Term Life Insurance Policy Add-Ons
It’s not uncommon for some term life insurance companies to have a plethora of extras and options that you can add cost to your plan. Many of these extras are hit or miss; some make you pay hundreds per year for a type of coverage that is probably very unlikely. These additional features can offer extra money or extra benefits in case a certain situation happens. Gambling on the way that the life insurance will need to be paid out is almost worse than saving that money separately for something else.
Remove Your Bad Habits
There are multiple “bad habits” that some people have that can negatively affect their health. Smoking and Alcohol are horrible habits that can cost people hundreds (or thousands, depending on the situation) because of higher rates. Insurance companies realize that these applicants who consume alcohol above the norm and or smoke are expected to have a shorter life expectancy. Since these statistics are generally accurate insurance companies charge higher term life insurance rates to reduce their risk of insuring someone who has statistics against them in terms of longevity of life. Being able to prove that you’ve quit smoking or drinking can help you get your rates lowered or even get you a lower rate on a new life insurance policy.
Many individuals do not realize that weight can raise your life insurance rates, too. If you are at least 30 pounds a “healthy” weight, you may experience higher rates than if you were not overweight. This is due to the fact that obesity is a bit health issue concern; doctors everywhere are letting people know that their weight is causing an issue with several aspects of your life. Some insurance companies offer incentives for lost weight. If you have lost a substantial amount of weight, you may want to reassess your life insurance policy to get the best rate possible.
Don’t Get Caught Up in the Euphemisms
There’s no beating around the bush, “term life insurance” brings up everything but a positive connotation. People do not like to think of the fact that they’re planning to pass away some day. Many will refer to it as something dealing with “savings” or “planning.” It’s life insurance, and that’s what it is. Become familiar with the different types of life insurance but it’s likely you’ll recognize term life insurance as your best option.
Watch for Hidden Fees
If you want to make monthly payments, you may be paying more. There are plenty of convenient options that hide hidden costs. While some of these things may be convenient enough to be worth the cost, it is important to attempt to fully understand the extra cost of all of these options. Knowing the cost can help you avoid spending extra on things you may not need to.
Term life insurance is something that many find confusing and therefore, don’t take the time to educate themselves. Be aware of hidden costs and benefits that can help you get the most out of your life insurance plan and possibly red