Among the different types of life insurance, you now understand the huge drawbacks when it comes to buying life insurance / permanent life insurance. Instead, take out term life insurance to protect you and your family.
Learn the difference between types of life insurance: term life insurance versus whole life insurance.
Tip #1 on finding cheap term life insurance
It is important to know the correct amount of coverage/death benefit you really need before actually going to an online life insurance comparison site to get quotes. You want to have more coverage than you actually need instead of being underinsured. Since term rates are the much cheaper of the life forms, you don’t have to worry about overprotection as much as you would with a lifetime policy (permanent life). When comparing the monthly premium cost for term versus whole life with the same amount of coverage, cheap term life insurance wins 100% of the time over expensive whole life/variable life/universal life.
Expenses to Calculate Before Purchasing Life Insurance:
Daily living costs (food/clothing) Education costs for the children (school) Costs for child care Mortgage payments / housing payments
Be sure to calculate those costs and consider future costs that may arise. This will give you a good idea of the coverage you’ll need each month for 30 years or how many years you’ll need coverage.
Tip #2 on finding cheap term life insurance
Once you have your life insurance quote(s) online, you can narrow it down to 3 companies and the quotes you feel comfortable with, then view the company’s financial rating:
Highest rating / financial strength of the company:
Standard and Poor’s: A++ (Secure/Superior) AM Best: AAA (Extremely strong) Moody’s: A aa (Exceptional) Fitch: AAA (Secure/Highest)
Again, if you are looking for a good life insurance policy, make sure you check the insurance credit or financial rating of the company. That is an important part of what makes a solid policy. If you buy a life insurance product from a company with a terrible financial rating, your policy will be worthless. Why? If you die, the company may not pay your death benefit on your policy. You can certainly find a very good, cheap life insurance policy from a company with an extremely high or the highest financial rating.
Tip #3 on finding cheap term life insurance
Set not only the right term life insurance amount, but also the right duration of your coverage.
Knowing that you don’t have to have permanent insurance for the rest of your life, you only cover the years when your children grow up. Why is this the case? The reasoning behind this is that your children depend on your income, so you need to insure your income until they become independent, which is normally after they get a job after graduating from college. When they can create their own income, you will no longer have dependents who need your income and therefore no longer need insurance coverage.
Term is normally quoted in the terms below: 30 year term, 25 year term, 20 year term, 15 year term, etc. (5 year increments). It is very cheap and is only needed for a limited time. Understanding that insurance gets much more expensive as you get older, you’ll only want to get it when you need it. Buying insurance is not a way to get rich. There are other ways to achieve financial freedom for you and your family beyond this type of insurance. Even at night you don’t have to keep an eye open!
Another great benefit of term-ins is that you can cancel your policy at any time without worrying about losing the “cash value” of the investment, as owners of lifetime policies do.
Take these 3 tips for finding cheap term life insurance to heart. Once you’ve bought your policy, you can rest easy knowing that if something happens to the income provider, the rest of the family is well protected for the long haul
Recommended
- Family Life Insurance Company - Quick Overview Secure the future of your family with good insurance?If your answer is yes, read on to learn about important factors to look for in your chosen company and policy!Purchasing a family life insurance policy is one of the most practical ways to deal with unexpected events such as a death…
- Tips for buying life insurance You've probably heard it before: death is one of the two things you can count on in life. (Tax is the other.) Death is something we all need to prepare for, and this is where life insurance comes into play.You need to get a life insurance policy with the best…
- Long term health insurance and why you should buy it Most people have a love-hate relationship with insurance, but especially long-term care insurance. If you love your family, you want to protect them with life insurance, homeowners insurance, auto and health insurance. There is a 1 in 1,200 chance that your house will burn down, a 1 in 240 chance…
- What is a joint term life insurance policy There are so many terms, phrases and policies in the life insurance market and it is very common for you to get confused especially if you are not very familiar with them. Anyway, as you learn, you will find that there are different types such as life insurance and term…
- What is Lead Generation for Life Insurance? Life insurance lead generation is one way you can get a list of possible people who are interested in buying life insurance. This type of method is used by many insurance agents or brokers. Long outweigh the process of calling and asking if anyone is interested in meeting them to…
- Mortgage Life Insurance - The Best Approach Insurance is risk management. So you need to identify the risk to be covered for each type and the best way to do it. Mortgage life insurance, like other types of insurance, can be expensive, so you should understand that the inherent risk is the same as with a normal…
- Life Insurance - Get it right Life insurance is sought after by people for various reasons. You can feel that because you are moving forward in life and feel that life insurance can give you the assurance that your family will be taken care of after your death. Another popular reason is that you are buying…
- The importance of term life insurance Researching the internet for term life insurance information and quotes is often the best way to get this valuable protection. There are different types of life insurance coverage and you must first decide which one is right for your circumstances.One of the most common policies when taking out life insurance…
- Something you would like to know about your life insurance… Life insurance is designed to make life easier for your family members in the event of your death. When you pass away, your children, grandchildren and other members of your family receive a financial benefit that helps them get on with life, even when you are not around.Types of life…
- Things to consider when buying life insurance Life insurance is the insurance of protected life in financial terms. This generally requires you to pay a premium on a monthly or annual basis for a specified term, depending on the policy you choose. It can be for a period of time or for a lifetime. Life insurance policies…
- Information on Colonial Penn Life Insurance Company and… Colonial Penn Life insurance company was founded in 1960 in South Carolina by the Conseco Group, a Fortune 500 company. The company was founded with the goal of providing life insurance and investment products to people across the country.Colonial Penn offers the many common types of insurance, but they are…
- Quickly find cheap home insurance online You cannot deny that most people dreamed of a cheap insurance home with good coverage. Well, you can find out if you are determined and patient enough to shop online or shop on it over the internet.The internet is the easy way to search as you decide the time and…
- What you need to know about life insurance before you buy Whole life, also known as straight life or permanent life insurance, provides lifelong protection for a specified amount. Whole life is in fact term life insurance with the addition of an investment component. Life insurance has many advantages over term life insurance.AdvantagesLifetime policies are generally a bit more expensive, but…
- Who should have life insurance and why? Anyone who has a desire or need for instant, tax-free cash should have life insurance. It creates an estate or protects an estate. Does this mean that if someone buys a life insurance policy, they will automatically and immediately have access to tax-free cash? It is possible but unlikely. If…
- Term Life Insurance - Everything you need to know to get the… If you have a spouse, children or both and their current and future standard of living depends on the money you take home each month, term life insurance is the best financial purchase you will ever make! For just a few cents a day, you can guarantee that if something…
- Compare competitive term life insurance policies to protect… Thanks to the internet, comparing term life insurance policies has become a lot easier. No more manually calling insurance companies for policy rates; instead, you can find online sites that offer term life insurance quotes without all the heavy lifting.While the internet has made this process easier with so much…
- Know about different life insurance plans Today, almost everyone has life insurance. It could be for various reasons such as investment purposes or tax benefits, but the main point is that it offers complete peace of mind. With insurance plans, one does not have to worry about the future safety of their family during their absence.…
- Term life insurance vs. whole life insurance - which is… It's not easy to find the type of life insurance policy that's right for you, but knowing the differences between term life insurance and whole life insurance will make the decision easier and may save you money in the long run.Term life insurance:Benefits:- Having coverage for a limited period of…
- How to find cheap life insurance rates, term or whole life Your choices when it comes to cheap life insurance, term or whole life, are not limited as long as you know what you are buying. What your lifelong financial pictures look like and how they work in them will be part of your decision making process. Last, but certainly not…
- What are the features of a life insurance policy? What are the features of a life insurance policy? First you need to understand what life insurance is. This type of insurance provides coverage for the named person from the time someone opens the policy until the death of the insured. The premiums paid on the policy help to build…