Save on Life Insurance

Do I Need Life Insurance?

Before you start comparison shopping for the best deals on life insurance, it’s a good idea to determine if coverage is even necessary. Generally, people purchase life insurance for one or more of the following reasons:

• To pay for final funeral expenses
• To provide financial support for minor children after a parent’s death
• To provide financial support for a stay at home spouse
• To ensure that the business they own has enough cash to stay afloat in the event of their death

Obviously, the amount of life insurance you need depends on the reason you are interested in purchasing coverage. A self-employed business owner who is the sole breadwinner for a family of six needs much more life insurance than an unmarried man who is simply looking for a way to make sure his funeral expenses will be paid after his death.

Sometimes, people purchase whole life insurance, universal life insurance, or other forms of permanent life insurance as an investment vehicle. However, most financial planning experts caution against this practice. There are other ways to invest your savings that produce a much greater return.

Getting Online Insurance Quotes

The Internet has made it easier than ever to save on life insurance. Instead of contacting every company individually, you can use an online service to quickly obtain multiple policy quotes. For example:

• Intelliquote offers quotes from companies like Prudential Financial and AIG.
• Insurance.com provides an easy way to obtain quotes for all of your insurance needs.
• Accuquote has a convenient online system to let you compare the price, features, and financial strength of multiple term life insurance policies.

How to Save on Life Insurance

As you’re choosing a policy, remember the following tips:

• Don’t automatically assume the life insurance your employer offers is the best deal. Most experts recommend using an employer-provided policy as a supplement to your own private insurance coverage, especially if you’re not certain you’ll be able to keep the insurance after leaving the company.
• Develop a healthier lifestyle. The easiest way to save on life insurance often involves taking steps to improve your health. Losing weight or quitting smoking, in addition to offering numerous other benefits, can cut your life insurance premiums by as much as 50 percent.
• Negotiate for a better rate, but don’t lie in order to save money. Although it’s perfectly acceptable to negotiate with the company providing your life insurance, you do need to be honest. For example, claiming you don’t smoke when you’ve been smoking a pack a day since high school is a very bad idea. If you die of a smoking-related illness, the company is legally allowed to refuse to pay your death benefits.
• Don’t bother with expensive riders. Insurance companies have created a number of ways to inflate your premiums, but most provide minimal benefits to you as a consumer. For example, purchasing an accidental death rider that promises to pay a double benefit if you die in an accident is simply foolish. It’s a better idea to have enough coverage to protect your interests regardless of your cause of death.
• Look for a specialist. If you suffer from diabetes or a similar chronic illness, look for a company that has underwriters who can specifically analyze the extent of your problem. For example, Manhattan Life Insurance offers discounted rates to diabetics who take their medication regularly and have their illness under control.
• Read the fine print carefully to make sure no hidden fees have snuck into your policy. For example, many companies charge a hefty surcharge for customers who opt for the convenience of having monthly payments automatically deducted from their checking accounts.

Additional information

To learn more about how to purchase life insurance, check out the helpful articles at LoveToKnow Insurance.