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Looking for Affordable Life Insurance? How You Can Pare Down the Cost

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Most families need to secure affordable life insurance coverage. You do not want to spend your time working and making a living to provide for your family and not supply them with a financial cushion should you die unexpectedly. That is why it is imperative that you find an affordable life insurance plan.

 

Determining Coverage

While buying affordable life insurance is recommended coverage for single people as well, it is definitely a priority if you are a homeowner with a family. You need the kind of protection that will enable your family to keep on functioning as they did before your death. Therefore, the coverage should extend to your monthly living expenses and the money that will be needed to fund your children’s education. Make sure you make a careful calculation of your budget as buying too much insurance will increase your premium.

 

Term Life Insurance

Fortunately, you can obtain affordable life insurance without too much difficulty. Shopping online is the easiest way to compare the types of coverage that are available and find the insurance that best fits with your lifestyle. Usually, term life insurance is the most affordable life insurance coverage when you first purchase it. Anyone can afford term life insurance who has not yet acquired the coverage as it only pays out to the beneficiary upon the death of the insured.

 

Term Life Insurance

 

The Difference between a Whole Life Policy and Term Life Insurance

On the other hand, whole life policies feature a tax-sheltered cash account and living benefit that builds up over time. People who choose this insurance coverage do not have to pay any tax on the yearly gain. In addition, the money can be used in retirement as a supplement to a retirement portfolio. Term insurance does not carry these kinds of advantages and, again, only highlights the actual life insurance protection. There is nothing but a death benefit provided with an affordable life insurance term plan.

 

One of the Benefits of Whole Life Policies

Purchasers of whole life policies have more latitude in how they use the financial instruments as they can also include an accelerated benefits rider. In these instances, a policyholder with a terminal illness can access as much as 2/3 of their benefits while they are still living.

 

A Term Life Insurance Policy: One of the Drawbacks with Respect to Cost

Term life policies carry the same premium for a specific period but, after some time, the premium begins to rise each year – often to the point where either the policy is terminated or the life insurance becomes unaffordable. Therefore, term life insurance can be considered affordable life insurance coverage at first but it takes on an unwanted transformation in the terms of expense as the years pass.

 

What Is Your Age and How Do You Feel?

In order to obtain affordable life insurance and receive a plan that offers sufficient coverage, you need to meet certain criteria, namely with respect to your age, health, and lifestyle. If these major components meet with an insurer’s cost calculations, then you can obtain a reduced premium.

 

Exercise Regularly and Take Good Care of Yourself

To receive affordable life insurance—whether it is temporary term coverage or permanent whole life protection—you need to follow a healthy lifestyle. In other words, to obtain a lower premium, you need to eat balanced and nutritious meals, refrain from smoking and don’t drink to excess. Exercise regularly and take good care of yourself.

However, that being said, you don’t need to be perfectly “healthy” in order to apply for insurance as it is important, for your financial protection and that of your family’s, that you carry a policy. Once you sign up with a company, you can start taking the necessary steps to follow the right program to enhance your health. If you make the needed changes, you can reapply for the coverage. Doing so will enable you to obtain still affordable life insurance by reducing the payment.

 

A Guaranteed Issue Life Insurance Plan

If you currently have a chronic condition, then check out the insurance companies that do not require a physical exam or who offer a guaranteed issue life insurance plan. The policy, in this case, may be higher priced, but you still can take other measures to reduce your insurance payment. That means you should also make a practice of staying safe on the job and when you are participating in a sport or hobby.

For example, you may have a difficult time trying to buy affordable life insurance coverage if your avocational pursuit is skydiving, scuba diving or rock climbing. In fact, if you like to spend part of your time pursuing these kinds of hobbies, you may not be able to obtain insurance at all. If you want to save money in this respect, it is better to take up running, biking or knitting instead.

 

A Guaranteed Issue Life Insurance Plan

 

 

Adjusting Premium Costs

You will also cut down on life insurance costs if you don’t purchase too much insurance. While you may need a certain amount of life insurance now to cover the needs of your children and their future education that need will gradually go away.

 

Making Projections for Coverage

Also, refinancing a home may whittle down your insurance needs. Therefore, when looking for affordable life insurance, consider how much protection you need now and project how much insurance you believe you will need five years from now as well as ten years into the future.

Planning for your life insurance needs now as well as into the future can help you add the protection your need or eliminate the coverage you no longer require. As a result, you can save as much as 65% on the expense by using this approach.

In addition, a good agent can save you as much as 75% on your insurance coverage by a simple review of your financial and health needs and circumstances. Seek out an insurance agent who is independent and has a designation, such as a CFP (certified financial planner). That way you can get the lowest rate on your life insurance coverage whether it is permanent whole life insurance or a term insurance plan.