Life insurance is a financial product that you get when you want to protect your family from money problems when you pass on. Life insurance can provide peace of mind, as well as financial security.
Unfortunately, it can sometimes feel as though you are spending too much money on life insurance. You want to protect your family’s future, but how can you do it without breaking the bank right now?
Consider Term Life Insurance
A term life insurance policy is one that you buy to cover you for a set time period. Policies are commonly available in five, 10, 20, and 30 year terms (and you can find additional terms as well). The downside to term life insurance is that if you live beyond the term, you have paid all of those premiums and you don’t see a payout.
However, this is also what makes term life insurance very affordable. You can pay a relatively small amount each month for a fairly large coverage amount. Get a term that will cover you until your youngest child is grown up, and you can ensure your family is protected for a reasonable rate.
Not everyone needs $1 million in life insurance coverage. Carefully assess your life insurance needs. Consider getting enough to replace your income while your kids are young, or consider coverage that will pay off your debts so your family has one less thing to think about. You can also take into account whether or not your life partner works.
If your family will be fine with a smaller benefit, you can get a smaller amount of coverage. That way, you’ll have a lower, more affordable premium.
Practice Good Health Habits
Your life insurance company sets premiums in part on how healthy you are right now. Are you likely to live beyond the term? If so, you’ll receive a lower insurance rate. If you are a non-smoker, have a healthy weight, and avoid drinking too much alcohol, you have a better chance of getting cheap life insurance.
Your age will also be taken into account. This means that you are likely to get a better rate if you are younger when you apply for your policy. Women can also expect to see lower premiums than men, since they have longer life expectancies.
Look at your family’s needs, and then consider what you can do to make yourself a more attractive customer. If you shop around for good life insurance rates, and if you are careful about the kind of policy and coverage you choose, it’s possible to be adequately covered for less.