Life insurance, is often a lot less expensive than most people think. Here are some life insurance savings plan that can save your money. And that coverage is essential, especially if you have a home and a family you provide for — sometimes, even if you don’t.There are hundreds of insurance companies offering a wide variety of plans and prices. Comparison shopping can save you big bucks.
Life Insurance Savings Plan
Here are some life insurance savings plan you need it:
1. Choose a Suitable Policy
The two main types of life insurance are ‘term’ insurance and ‘whole of life’ assurance.Term insurance is typically cheaper than whole of life cover as it pays out only if you die within the policy term. Whole of life cover lasts until you die, whenever that might be, and so is guaranteed to pay out.You can also arrange for the policy to pay a monthly income rather than a lump sum – this can work out cheaper than other forms of cover.You might also be able to save money if you are happy with decreasing term insurance, where the pay-out gets gradually smaller the longer you live.
2. Buy Life Insurance When You Are Young
An advantage to buying life insurance as soon as possible is that your premiums are lower. As you age, it gets more expensive. Many term policies give you the option to renew your coverage at the end of the term without undergoing another medical exam.
3. Stop Smoking
Once your body has been free of tobacco products or nicotine replacement products for 12 months, the cost of term insurance drops dramatically. Lets see, a 35-year-old female smoker wanting £200,000 level term insurance over 25 years would pay £23.08 a month to best-buy provider Norwich Union. The cost of the same cover for her non-smoking equivalent would be almost half at £12.52 a month. Of course, if you’ve stopped smoking since buying term insurance, you should definitely shop around for a cheaper deal.
4. Take Life Insurance Medical Exam
Many companies offer life insurance policies, which promise to provide coverage without a medical exam. That may sound convenient, but those policies cost far more than an “underwritten” policy if you’re healthy or even have some medical issues. Filling out the tedious life insurance application and taking a life insurance medical exam will most likely pay off in lower premiums.
5. Pay Bills Annually
Once you’ve found the best insurance policy for your needs, find out if you can save money by paying annually. Some insurers charge fees for monthly billing.
In general, the fewer payments you make over the course of the year (known as fractional premiums), the less you’ll pay overall. Also, some insurers charge less if they can transfer the premium payments directly from your checking account.