Life Insurance Premiums Don’t Have to Break Your Bank

by Michele Postler, Tuesday, December 18, 2012

Life insurance shouldn’t be looked at as planning for your death but for planning for any unforeseen event that may affect the livelihood of your loved ones. Shopping around for life insurance is not on the top of your list for enjoyable things to do in your free time but it sure will help out if something were to ever happen to you.


Many households make so many excuses not to get life insurance, like it is too expensive or you can’t get coverage. What they don’t know is that most people can get coverage and if you are a pretty healthy individual you will pay less the earlier in life you get the coverage. It is not wise to wait until you feel the pressures of old age to get life insurance.


Some tips to avoid paying a large premium for life insurance are listed below and should serve as a guide when comparing life insurance quotes.


Term is the cheapest life insurance and provides you with level payments for a specified period. After that period is over the payment amount increases, this may come at a time when you are older in age and possibly not as healthy. So it’s important to consider these facts when shopping around for cheap term life insurance quotes.


Permanent life insurance is a little more expensive but is still a fairly affordable life insurance option. The payments stay level for life, or as long as you hold the policy. There is also a savings portion in the policy that you can build up and use later. Once you have undergone the medical exams and are approved for the policy it can not be cancelled as long as you make the payments. Even if your health declines the policy doesn’t change.


Buying life insurance when you are relatively young will help you keep those premium payments low. Since the insurance companies don’t see you as a high risk to die soon they offer pretty low premium payments. This is the best time to get the insurance as the price can possibly stay low for the life of your policy.


Group policies are not always the best option as they don’t require a medical exam and group all the employees together. This often ensures a higher premium payment. Also, if you leave the company the policy may not go with you. Meaning that if you are laid off or find another job with a different company you will not have that insurance anymore. If you have a separate individual policy outside of the company, it doesn’t matter what the situation is, the policy will still be active as long as you are paying the premium.


Paying your premium annually, quarterly or semi annually will reduce the amount you pay because some insurance companies often offer a discount when paying annually, as opposed to monthly. When paying monthly premiums some companies will charge a fee to process those monthly payments.


Shopping around for life insurance is now a lot easier as there are many different companies that offer affordable life insurance quotes online. Once you find the best rates you will have to jump through some hoops to get the coverage, like filling out an application and getting a medical done but once this is done, you are set up for life. It’s just another one of those things that comes with family planning and making sure you and your family are covered in case of any unforeseen events.