If you are in the process of shopping around for a life insurance policy to suit you and your loved ones, you may be wondering where to begin your search. It can be a difficult, stressful, and time-consuming process from start to finish but by doing your research ahead of time and proceeding with a basic knowledge and understanding of what life insurance is and how it can benefit you and your family, you can be confident that you have made the right decision for years to come. If you are on the hunt for life insurance that not only suits you and your loved ones but is also affordable regardless of what your individual financial circumstances may be, continue reading to find out everything you need to know.
- Purchase sooner rather than later
If you are only in your early 20s and have no dependents, organizing life insurance probably doesn’t rank highly on your list of priorities but it should. If you are looking to save a considerable amount of money on your life insurance policy, purchasing sooner rather than later can have a dramatic impact on your monthly payments with your age and health status, the factors life insurance providers are likely to assess first during the process of determining your rate. It can differ from provider to provider but it usually means that the younger and healthier you are, the less you will be asked to pay on a monthly basis for coverage. It can also be locked in for the entire duration of your policy so the total amount you pay every month is unlikely to ever increase with or without your prior knowledge. It is a common mistake to wait until you have taken steps to improve your overall health and wellness or until you have greater monthly incomes but by waiting until you are older, you may have no choice but to pay double, or even triple, than would you would currently be quoted.
- Choose a term life policy
If you want to make life insurance affordable, choosing a term life policy as opposed to a permanent policy is a great place to start. This means, in the very simplest of terms, that you will be covered for a specified period of time, such as 10, 20, or 30 years although some companies do offer 40 years, instead of throughout your entire life. It can provide much-needed, and affordable, coverage during a time in your life when you may need it the most such as when you are preparing to become a first-time homeowner or while your children are in college or university. It may also be possible for you to eventually transfer from a term life policy to a permanent policy down the line if your overall health and wellness was to suddenly decline or if you were looking for something a little more stable as you age as there are many types of life insurance available to suit your individual needs and wants at various different stages throughout your life.
- Do your research
It may sound like an obvious point but in order to ensure you are making life insurance affordable for your individual financial circumstances, you must do your research ahead of time and shop around until you are happy with the decision you have made. It may also benefit you to know, if you don’t already, that asking for a life insurance quote is not only quick and simple but, in the vast majority of cases, completely free of charge so you can compare and contrast quotes from a number of life insurance providers before coming to an informed decision. This can allow you to assess your options and, perhaps most importantly, prevent you from settling for the first quote you receive which may end up being the most expensive. In addition, you must also remember that life insurance quotes advertised online are often only applicable to the lowest available rate which only a select few applicants tend to meet the criteria for so it is always worth requesting a quote as opposed to simply assuming what your monthly coverage will cost.
- Avoid unnecessary features
If you are unfamiliar with the process of shopping around for life insurance, it may benefit you to know that you will, more than likely, be asked if you would be happy to pay for a number of additional features or riders. It may sound like a great deal at the time or you may have been convinced that you need them but by avoiding unnecessary features, you can save yourself a considerable amount of time and money from the very onset. It may also be possible to add riders at a later date if you change your mind or would be happy to pay for additional features down the line when your current financial circumstances improve. This can include the option to waive payments if you were to suddenly become paralysed or disabled, add additional coverage for your closest family members, and have steady cash flow paid to your loved ones in the event of your sudden death. If you feel as if you could benefit from any of the most common riders at the present time, however, it may not seem like such an unnecessary expense to you as it perhaps would to others.
If you are in the process of shopping around for a life insurance policy to suit you and your loved ones, you may be wondering whether or not it is possible to do so whilst on a budget. It may, however, benefit you to know that there are a number of steps you can take throughout the entire process to save yourself a considerable amount of time and money. This includes purchasing sooner rather than later, choosing a term life policy as opposed to a permanent policy, doing your research ahead of time, and avoiding unnecessary features that you are unlikely to benefit from any time soon.
Finally, if you’re looking for some humor, consider checking out The Killer Punch New’s article on health insurance memes, it’s got some funny memes about insurance – which is hard to do because insurance is inherently an unfunny topic.
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.