Life insurance is designed to protect your family from the financial problems that arise due to an untimely passing. It assures their financial security in one of the most difficult moments they will face so they can focus on more important matters. Life insurance is essential for the protection of families with sole income earners, families with multiple kids, fixed income, and many other common family arrangements.
Life insurance also provides a safety net during tough economic times like this. When job security is low, life insurance becomes even more critical. When one or more spouses is out of work, the family is the most financially vulnerable. Knowing that there is a life insurance policy there for protection in case anything were to happen, can be a wonderful peace of mind.
Helpful Tips to Save Money on Life Insurance
Life insurance companies are starting to raise rates for the first time nationally in quite a while. This means if you want to lock in a low rate, now is the time to be shopping around.
* Which policy is right? Understanding the differences between term and permanent life insurance is important. Term life insurance policies are cheaper because they are setup as a set rate for a set period of time (term) and they have a fixed payout that does not change. Whole life policies are best for people with a higher income who can afford the higher premium and want coverage for their entire lifetime. Because of the differences term policies are usually sold to younger people who have little risk of passing away during the term period.
* Shop Around – Its important to compare as many quotes as you can. Life insurance companies compete very heavily with each other and you can find a much lower rate by comparing them against one another using many of the online insurance quote comparison websites out there like InsuranceAgents.com.
* There is Always Room to Negotiate – Don’t be afraid to play hardball with the life insurance company when they give you their first quote. If you can show you are in good health you may be able to negotiate your rate down lower and save yourself hundreds of dollars a year or more.
* Stay Healthy – This may seem obvious, but as far as life insurance goes, the healthy you stay the less you will pay. If you want to keep your life insurance costs low, exercise and eating well are the two most effective ways of doing so.
* Don’t Get Scammed – A common practice among unscrupulous life insurance agents is called “churning”. Whole life insurance policies build value over time and in many cases tens of thousands or more dollars can build up inside the policy. Churning involves convincing someone who own a whole life policy to use the cash saved in the policy to buy a “new and improved” policy. The catch ends up being the new policy eats up all the cash value of the old, therefore bringing the policyholder back down to practically nothing in cash value and wiping out everything they had saved up. Typically the old policy was completely fine and suitable to the customer, but the agent intentionally misleads them in order to secure a big commission for themselves.
The Right Agent is Easy to Find if You Know Where to Look
There are hundreds of life insurance companies in the US and over 100,000 agents serving these companies. This means its very easy to find a local agent to work with, if you know the right places to look. Using online life insurance quote comparison websites like InsuranceAgents.com can help you find up to five local agents and compare their rates against each other all from the convenience of your computer.
About the Author
InsuranceAgents.com allows consumers to compare life insurance rates from up to five local agents.