Should You Pay Your Life Insurance Premiums Annually, Quarterly, Or Monthly?

When it comes to purchasing life insurance, you’ll have a lot of decisions to make, including how much coverage you need, who your beneficiary will be, and which carrier to buy a policy from. But you will also have to consider how you are going to pay for it: depending on the life insurance policy, you will have the option to pay your premiums annually, quarterly, or monthly. Each method of payment has its own advantages, and you’ll need to consider the following  factors  when deciding how frequently to pay your premiums.

Paying Life Insurance Premiums Annually

discount symbol in gold with a character in front of it with a calculator
One of the benefits of paying your premiums annually is that you can get a discount from your insurer of up to 8% of your total premium.

When deciding on how often to pay for your life insurance premiums, you will need to take into consideration your individual circumstances, including your budget and income. If you choose to pay your premiums annually, you will have to pay one lump sum every year, which can seem like a lot of money at once. But this method can be more convenient, since it eliminates the worry of having to pay your premium on time every month, and will free you from having to budget for your premium each month. 

While paying a whole year’s worth of premiums in one lump sum is not in everyone’s budget, if you are considering this option and are unsure whether it makes sense for you financially, you should know that you can get a discount from your insurer of up to 8% of your total premium when you pay annually. These discounts can add up, and you could end up saving a lot of money, especially if you plan on keeping your policy for a long time.

If paying your premiums annually sounds like a good option for you, make sure you shop around and compare multiple life insurance policies, since different companies will offer different discount rates for paying annually. 

Paying Life Insurance Premiums Quarterly

Some policies will also give you the option of paying semi-annually or quarterly, but this is less common, and is usually not ideal for most people, since you’ll have to make a large payment but will not receive the benefit of a discount like you would if you paid annually. But if you’re worried about missing monthly payments and can’t  make one large lump-sum annual payment, a quarterly or semi-annual payment might be worth it. 

Paying Life Insurance Premiums Monthly

hand holding a cell phone with the other pressing a button with a bank on the screen and money next to it
Setting up autopay, or electronic fund transfer, from your savings or checking account will help you not miss a monthly payment.

Paying your premiums monthly is the most common payment option for life insurance premiums. Depending on your income, it might be easier to fit smaller monthly premiums into your budget than it is to come up with one large annual lump sum. If you’re worried about missing a payment, you can use an autopay option, or electronic fund transfer, from your savings or checking account – in fact, many insurance companies will require that you do this. 

When it comes to deciding how to pay your life insurance premiums, you have to take into consideration your income and monthly budget. If it is possible to pay your premium annually, this is your best option; however, if that’s not possible, monthly payments are your best option. In the end, the most  important thing is that you never miss a payment, so you can prevent your life insurance policy from lapsing. And if you choose to make your payments annually and find out that you cannot keep up with it, you can always contact your insurance company and request a change to your payment schedule. 

If you are looking for the best way to save money on your life insurance policy, work with a trained agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. 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.

Getting Life Insurance & Preparing For A Medical Exam

If you’re shopping for a life insurance policy, you are most likely searching for a great rate. But in order to determine your premium price, some insurance companies will require you to undergo a medical exam before you buy. They do this in order to figure out how much of a risk it is to insure you; the healthier you are, the cheaper your insurance premiums will be. There is no need to be nervous about this medical exam, even if you have pre-existing conditions. Before undergoing your medical exam, there are ways that you can prepare, so you can get the best possible rate.

What To Expect

a man sitting down getting his blood pressure checked by a doctor
During a life insurance medical exam, a medical professional will go over your health history and check your blood pressure.

Life insurance companies usually require a physical in order to get a full view of your health history, family history and lifestyle habits. In most cases, a medical professional will come to your home and ask questions and collect samples. First, you will be given a verbal questionnaire which will include questions like: Are you a smoker? Do you have any chronic conditions? How often do you exercise? Then they will measure and weigh you and take blood and urine samples. After they collect this information, they will use it to help them determine your rates for coverage.

The whole process takes about 20 minutes. It is important to be as truthful as possible when answering any questions the medical professional asks you. For example, if you omit the fact that you are a smoker, and the insurance company later finds out that you smoke, they will cancel your policy. 

How To Prepare

One Week Before The Exam:

  • Eat as healthy as possible and avoid processed foods that are high in sugar, fat, and sodium. Instead, eat vegetables, leafy greens, and whole grains. This will help lower your cholesterol.
  • Increase your water intake and avoid alcohol. Alcohol is dehydrating and will affect your liver enzymes in blood tests, which can be a red flag for insurance companies. Instead, drink plenty of water to flush out toxins.

One Day Before The Exam:

caucasian woman sleeping in a bed
Be sure to get a good night’s rest before your medical exam.
  • Consider fasting for at least 8 hours before your exam. Eating before your blood work will increase your cholesterol and glucose levels
  • Do not stress out or exercise too much the day before your exam. This will only increase your pulse and blood pressure. 
  • Get a good night’s rest so your vital signs are at their best the next day. 

The Morning Of The Exam:

  • Avoid coffee because it will affect your blood pressure.
  • Drink water.
  • Do not wear heavy clothing so the medical professional gets the right reading on your weight. 
  • Have your primary care physician’s info ready, as well as a list of any medications you take regularly. 

Getting The Best Ratesmoney falling from the sky

Life insurance physical exams will determine how much you will end up paying for your policy. You can get the best possible rates by making some changes to your lifestyle and using the tips above. But you can also find great rates by comparing multiple insurance companies and the policies they offer. To get more helpful information about different types of life insurance policies, and how you can get coverage that fits your budget, take a look below. We have provided information for top-rated insurance companies that specialize in life insurance, so check their rates today and see just how simple and affordable it is to protect your family. Always check multiple sites to make sure you have bargaining power and to know the advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

9 Factors That Affect Life Insurance Costs

Are you looking to protect your loved ones financially? Life insurance is the best way to make sure your family is taken care of at the end of your life. It is also a great investment! As you are searching for a policy, though, you might be confused about the multiple quotes you are receiving. How do insurance companies determine your premiums? In order to find the policy that offers the most coverage for the lowest price, you should have an understanding of the different factors that go into premium pricing. Some factors you can control, while others you cannot. 

1. Age

illustration of a woman holding her hand out with money over it
The younger that you are when you buy life insurance, the cheaper it will be.

Age is one of the primary factors in determining how much your life insurance policy will cost. The older you are, the more expensive a plan will be for you, simply because younger people have a longer life expectancy than older people. In addition, the older you get, the higher the risk of developing a health condition. Studies show that approximately 40% of people who have life insurance wished they had purchased their policies at a younger age, so don’t put off looking for your policy!

2. Gender

Gender is another primary factor in determining price. Statistically, women live longer than men, and because of this, life insurance premium rates are higher for men than for women. 

3. Coverage Amount

The amount of coverage you choose will determine how much your premiums will be. The higher the coverage, the higher your premiums will be. For example, if you want $50,000 in death benefits, you will pay less for that policy than for one with a death benefit of $1,000,000. The duration of your policy will also help determine pricing; a term life insurance policy will be cheaper because it covers you for a certain amount of time, unlike whole life insurance, which covers you for your entire life. 

4. Family History

Even if you have no current health issues, life insurance companies will look at your family history and take it into consideration when determining your premiums. If your family has a history of hereditary disease, you can expect to pay slightly more. 

5. Tobacco Use

caucasian woman with her hood up smoking a cigarette
If you smoke, then you can expect to pay more for a life insurance policy.

Smokers have a lower life expectancy than non-smokers because they are more likely to develop  health issues such as cancer. Smoking will increase your premiums, but if you quit smoking for 6 months or more after purchasing your plan, you can get your rate lowered!

6. Hobbies/Lifestyle

Do you go skydiving a lot? Are you into extreme sports? Well, your hobbies can impact your life insurance premium prices. The more risky hobbies you have, the higher your risk of death, which will raise a red flag for insurance companies. 

7. Occupation

The same goes for your occupation: the higher the risk of you getting hurt and killed in your job,  the higher your premiums will be. Pilots, roofers, and people who deal with toxic chemicals, for example, will have higher life insurance premiums. 

8. Health

Some insurance companies might require a medical exam before issuing a policy. If you have a history of health conditions, including high blood pressure, high cholesterol, heart disease, or are overweight, then your premiums will be higher. If you lower your blood pressure or cholesterol, your insurance company might lower your premiums. The healthier you are and the better your  habits, the less you will pay for coverage. 

9. Driving Record

close up picture of a car's front bumper that is smashed up.
Your driving record may be looked at by some life insurance companies to determine premium prices.

Many people are unaware that your driving record plays a role in determining how much your life insurance premiums will be. Because accidental death is something that underwriters consider when making their decisions on premiums, insurance companies will take into account things like DUIs or at-fault collisions. However, as long as your last infraction was over 3 years ago, your driving record will probably not have an impact on pricing. 

When it comes to life insurance premiums, some factors are out of your control, such as your family’s health history, but there are some things that are in your control, such as your driving and lifestyle habits. If you quit smoking, are a safe driver, and engage in safe hobbies, you can get a lower-priced life insurance policy. Just remember: when applying for your policy, make sure to answer all questions honestly, because if you lie, it will be considered fraud and you will lose your policy and possibly face criminal charges. 

The best way to find the most affordable policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a company with good rates, and give you ideas for how to cut down on costs. We have listed some companies to work with that will be able to find you the most coverage for less. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

8 Life Insurance Myths Debunked!

Life insurance is necessary: it will keep your family protected, and give you peace of mind knowing that you can keep on providing for your family even after you’re gone. But many people choose not to purchase a life insurance policy because they think they do not need it or that it will be too expensive. In fact, there are many common life insurance myths that are simply not true and cause unnecessary confusion and hesitation. You can find an affordable insurance plan even if you’re on a tight budget! 

Common Life Insurance Myths

Myth 1: Life insurance is expensive

hands opening an empty wallet
A common myth is that life insurance is expensive, but for less than $30 a month, you can get affordable life insurance.

Truth: Cost plays a big role in why people choose not to buy life insurance. People often overestimate how much it will cost them, but the truth is, the average cost of a life insurance policy is only about $26 a month. Your life insurance rates depend on various factors such as your age and health, but more often than not, you will find that it is more affordable than you thought it would be.

Myth 2: Only the breadwinner of the family needs life insurance.

Truth: This is one of the biggest misconceptions about life insurance. Just because you are a stay-at-home parent does not mean that you don’t need a life insurance policy. Your partner would have to find a way to take care of your children and keep the household running without you in the event of your death, and that would be challenging and expensive. They would have to pay for childcare, keep up with the household chores, and deal with meal preparation and more, all while continuing to work. Life insurance can help provide benefits to cover some of these expenses. 

Myth 3: You have health issues so you won’t qualify.

Truth: It is true that the healthier you are, the less you will pay for life insurance. But this does not mean that you won’t qualify at all for life insurance if you have health conditions. Different insurance companies will rate conditions differently than others will, which is why it is important to compare multiple companies’ policies and rates. 

Myth 4: You’re single with no children, so you don’t need it.caucasian woman with red hair smilingwith an orange scarf on her head.

Truth: Single people need just as much life insurance as people who are married or have children. Do you have a private student loan? A mortgage? Car loan? Any of these loans, especially if you have a cosigner, will get passed on to your cosigners. They do not just go away when you pass. In addition, you should have life insurance to cover the $10,000-$20,000 needed to cover your funeral expenses, so that your family will not have to struggle to come up with that amount. Consider a final life expense life insurance policy for your future, and the future of your family.

Myth 5: Life insurance through your employer is good enough.

Truth: Did you know that you should have life insurance coverage that is worth 10-12 times your annual salary? Your employer’s life insurance policy is helpful, because it is probably free or very low-cost, but it will not provide this amount. In addition, the moment you are let go or leave your job, you will lose your employer-based life insurance policy. It is more cost effective to buy your own individual plan. 

Myth 6: You’re better off investing your money instead of buying life insurance.

Truth: Sure, it would be nice to be able to consistently invest money over your lifetime in case of  the unexpected, but oftentimes it just doesn’t work out how you planned. Things come up and you will often need to use the money that you have saved up. Having a life insurance policy will mean that, even if your savings and assets are depleted when you pass, your family will still be financially secure.

Myth 7: You’re young and don’t need life insurance.

roll of money bills
The younger you are, the more you will save on life insurance.

Truth: When you are young, the annual premiums for a life insurance policy are less expensive than they are when you are older. Insurance companies base their rate partially on age, because generally the younger you are, the healthier you are. The longer you wait, the greater your chances of developing a health condition – which would make it more expensive and challenging to get coverage. 

Myth 8: If you get term life insurance, you can’t convert it to become a permanent policy.

Truth: Term life insurance is great because you get to choose how long you will need coverage for depending on your financial situation. But let’s say you choose a 20-year term life plan because you have a 20-year mortgage. Once the 20 years is up, you will forfeit all of that money, unless you convert your policy. It is a popular misconception that you cannot convert your term life plan, but you can easily choose to convert it into a permanent or whole life insurance policy.

These are just a few of the myths about life insurance that prevent people from looking into a policy. Don’t let these misconceptions stop you from comparing plans and finding out what your options are. To get more helpful information about different types of life insurance policies, and how you can get covered within your budget, take a look below. We have provided information for top-rated insurance companies that specialize in life insurance, so check out rates today and see just how simple and affordable it is to protect your family. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.