Insurance 101

The 5 Ultimate Money-Saving Tips When Buying Life Insurance

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If you’ve just stepped into the adult world and are new to life insurance or simply aren’t familiar with the basics, you may have found it to be a costly investment. And while that’s true, there are a number of ways you can save money when you purchase life insurance.

There is no excuse for skipping on life insurance, but there are many ways to get the best out of your investment. Check out the following money saving tips when buying life insurance.

1. Always Set the Right Term

When you sit down to plan out your life insurance, always think about the term. You may want the policy specifically for your children or may only require it until you pay off your mortgage.

Depending on your needs and your future life plans, the term you set on your life insurance will vary too. If the needs are long-term, it should reflect in the insurance policy.

2. Buy It When You’re Young

The cost of your life insurance will rise as you age. Hence, if you decide to save money when you’re young, then you will have to pay less. This is because insurers believe that young people are less likely to make a claim.

Although there are other factors like lifestyle, medical history, and occupation that influence the cost of insurance, age can also make a huge difference.

3. Don’t Buy Too Much Cover at Once

Investing all your life money in the insurance can be a rash decision and extremely costly. Don’t try to sign up for a $600,000 insurance if your loved ones can comfortably live with a life insurance of $400,000.

Additionally, also check if your employer offers “death in service”. You’d be surprised to know that this benefit can pay off four times the amount of your salary.

4. Go Smoke-free

Smoking is considered to be a bad lifestyle habit. Therefore, chain smokers have to pay more than non-smokers do for life insurance. If you cut out this habit completely, you can save a considerable amount of money

5. Opt for Joint Life Cover

Consider joint life coverage instead of two separate life plans. Both you and your partner will have to pay less and get good benefits. In case one of you passes away, the joint life benefit will provide adequate coverage.

If you follow these tips, you can definitely get an affordable life insurance policy.

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