This post is to support the Life Insurance Movement.
No one really wants to buy life insurance. Why would they?
You can spend your money on other stuff that you really enjoy. Plus, with life insurance, you always think about the “worse case” scenarios. How pessimistic!
The only time really start thinking about life insurance is when certain life events occur. Whether it’s the birth of new child or you lose someone close, it’s these type of events that get the wheels turning.
Just as many people between the ages of 30 and 50 lack a will, many also lack life insurance. A March 2011 survey from Genworth Financial and the University of Virginia’s Darden School of Business found that almost 70% of single parents and 45% of married parents were living without any coverage.
Why Do So Few People Actually Buy Life Insurance?
Shopping for life insurance may seem confusing, boring, or unnecessary. Yet when you have kids, get married, buy a house or live a lifestyle funded by significant salaries, the need arises. The main reasons people buy life insurance are because they feel a need to provide financial security for the future of their family, and it also provides a peace of mind knowing your family will be taken care of if you die. Here are a few reason to buy life insurance
- Provide for your final expenses
- Money for your family’s living expenses
- To replace your income
- Pay off your home loan
One of the most common reasons that people don’t buy life insurance is because they assume that it’s going to be too expensive to fit in their budget. In most cases, that couldn’t be further from the truth. There are several options for life insurance protection. Regardless of your health or any pre-existing condition, it’s important that your family has life insurance protection.
It Doesn’t Have To Be Hard to Find
There are two basic types of life insurance: term and cash value. Cash value (or “permanent”) life insurance policies offer death benefits and some of the characteristics of an investment – a percentage of the money you spend to fund the policy goes into a savings program. Cash value policies have correspondingly higher premiums than term policies, which give you death benefits only and have terms of 10 years or longer.
Term is a great choice for many young adults because it is relatively inexpensive. There is an economic downside to term life coverage: if you outlive the term of the policy, you and/or your loved ones get nothing back. Term life policies can be renewed (though many are not) and some can be converted to permanent coverage.
How Long Do You Have a Policy For?
If you don’t want to pay premiums on an insurance policy for more than 10 years, then term life stands out as the most attractive option. If you are just looking for a short-term hedge against calamity, that’s the whole reason behind term life insurance. If you’re getting into estate planning, then permanent life insurance may prove a better choice.
Life Insurance is NOT expensive
Premiums on 10-year level guaranteed term policies are some of the cheapest life insurance you can buy and all of the best life insurance companies carry them. Just to give you a ballpark example, a 40-year-old woman could potentially line up $250,000 in coverage through one major insurer for a premium of $16 a month in August 2011. The cost and availability of life insurance depends on such factors as
- current health
- type and amount of insurance purchased
Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insured by having the policy approved. There are also expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.
Not sure what life insurance is best for you? Don’t go at it alone. Consult a professional, but first get a free quote here to make sure you’re getting the best price.
Working with an Independent Insurance Agent to Get Life Insurance Coverage
The best way to get a quality life insurance policy is to work with an independent insurance broker. Unlike a traditional insurance agent that you would typically work with, independent brokers work with dozens of highly rated companies across the nation. We can bring dozens of quotes to you, instead of just one quote from a specific company.
Every insurance company is different, and all of them have different medical underwriting and rating system, which means that you could get drastically varying rates depending on which company that you get the quote from. If you want to ensure that you’re getting the most affordable insurance policy, it’s important that you get dozens of quotes before deciding which one is going to work best for you. Instead of wasting hours and hours on the phone calling different agents, let one of our experienced independent brokers do all of the work for you.
We get a lot of questions about how much it costs to use an independent agent, or the benefits of these independent agents. They are free to use, and they will save you both time and money on your life insurance search. Don’t make the process any more difficult than it has to be.
How to Get Affordable Life Insurance
Aside from working with an independent agent, there are several things that you can do to keep more money in your pockets. Making a few simple changes could help you save thousands of dollars on your insurance plan.
The first thing that you should do is cut out smoking. If you’re listed as a smoker when you apply for life insurance, then you can expect to pay much higher premiums for your coverage. In fact, smokers are going to pay at least twice as much for life insurance versus what a non-smoker would pay for the same sized plan. If you want to save money, then you’ll need to cut that bad habit. If you’re looking for additional motivation to finally quit the cigarettes, just think about the thousands of dollars that it can save you.
The next thing that you should do is improve your overall health. Before the insurance company accepts your application, they’re going to require that you take a medical exam (unless you buy a no medical exam plan) and the results of that medical exam is going to play a major part in how much you pay every month. If you want to save money, you’ll need to improve your health.
Two of the main ways that you can do that are by getting regular exercise and sticking to a healthy diet. Both of these can help you lose weight, lower your blood pressure, and reduce your risk of being diagnosed with severe health complications, like diabetes or cardiovascular problems. If you’re overweight, you can buy around 50% or more for your life insurance. If you want to save hundreds of dollars every year, it’s time to start hitting the gym.
Another simple way that you can save money on your life insurance plan is to slow down on your way to work. Most applicants don’t realize that your driving record is going to play a role in how much you pay in premiums for your coverage. If you have several speeding tickets or accidents within the last year, then you could end up paying a lot more for your life insurance.
Don’t Wait to Buy Life Insurance
If there is only one thing that you get out of this article, it’s that you shouldn’t wait any longer to get life insurance. If something tragic were to happen to you, your family would be responsible for a massive amount of debt and other expenses. Your life insurance plan will ensure that your family will have the protection that they need, regardless of what happens to you.
We know that nobody wants to think about his or her death, but not planning for the inevitable is one of the worst mistakes that you could make for your loved ones. If you have any questions about life insurance or the different options available to you, please contact one of our agents today. We would be happy to answer those questions and connect you with the best plan possible.
You can’t predict the future, which means that you never know what life is going to throw at you. Contact one of our agents today and we can get the insurance process started.