Tips To Get The Most Out Of Your Life Insurance Policy

Life insurance as a concept is pretty simple: you pay a premium each month so that your family will receive a lump sum, or death benefit, when you are gone. But in practice, it’s not always that easy; there are many different twists and turns to navigate, and a lot of different kinds of life insurance policies to choose from. With so many options, insurance companies, rates, rules, and more, finding the right policy – and getting the most out of it once you have it – can seem confusing. Fortunately, there are some simple steps you can take to make sure your policy is right for you, and that you’re getting the most out of it.

Make Sure You Have Enough Coverage

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Go over your plan and coverage and make sure it suits your needs, because situations may change.

Review Your Current Life Insurance

If you already have life insurance, take the time to review your policy and make sure it truly suits your needs. If anything in your life has changed, your life insurance policy should reflect those changes. The whole point of your policy is to make sure your family is taken care of after your passing, and if you aren’t periodically reviewing your coverage, they might not benefit as much as they should. You’re paying for life insurance, so make sure your family will receive at least as much as they need! 

Do You Need More Coverage?

After reviewing your current life insurance policy, does it suit your needs? If not, it’s time to begin shopping around to find a plan that offers more coverage at a better price. The best way to do this is by comparing plans from different companies, as each company offers different coverage options. 

Consider Converting Your Term Into Permanent

If you have a term life insurance policy, it will eventually expire. Term life policies are great for protecting your family for major expenses, like paying off a 30 year mortgage. But what about future expenses that will occur after that term has expired? To protect your family in the long run, and save more money, consider converting your term life insurance policy into a permanent life insurance policy. There are different permanent life policies to choose from, including whole life, universal life, and more. Speak to different insurance companies to see which ones they offer and to determine which works best for you and your family. 

Get The Most Savings From Your Life Insurance Policy

Pay Your Insurance Annually

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If you pay quarterly or annually, then your payments will be cheaper.

If you can afford to pay your life insurance premium as an annual lump sum, do so: this is one of the best ways to save money. Insurance companies charge fees on each of your  monthly payments, so the fewer payments you have to make each year, the more money you will save. If it is not possible for you to pay annually, consider paying quarterly, or ask your insurance company if they will charge you less if you pay via direct debit. 

Improve Your Health

The better your health, the lower your premiums. Most companies  require you to undergo a medical exam and have blood work done so they know how healthy you are, or how risky it would be to cover you. If you have health conditions such as diabetes or heart disease, your insurance company might charge you higher rates for life insurance. However, if you manage your health conditions, exercise, and eat healthier, your insurance company will take note of your good health. In addition, smokers pay 2-5 times higher premiums for life insurance than do non-smokers, so you could lower your rates by quitting smoking. 

Low-Load Policies

Have you ever heard of low-load policies? These policies, also called no-load policies, have fewer expenses like fees or commissions. This means that a larger percentage of your premium dollars go towards your death benefit. 

Get It Before You Need It

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Don’t wait because the younger and healthier you are, then the cheaper your premiums will be.

As we mentioned earlier, the healthier you are, the cheaper your life insurance policy will be. It’s best to try and get life insurance when you are healthy, so you can enjoy lower premiums, which will save you more throughout the life of your policy. Consider life insurance when you are young and healthy so you can get more coverage at a lower rate. 

More than 40% of Americans do not have life insurance, which could end up leaving their family in a bind. The majority who don’t have it think they don’t need it or that it’s expensive, when in fact, the average cost of premiums is only about $30 a month. Life insurance is necessary: we all have debts, and we all want to protect our family in case the unexpected happens. Life insurance can help with your family’s expenses for many years and will prevent them from struggling in your absence. The right policy for you is out there! Consider using online tools, or speaking with an agent. We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

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