There are several misconceptions about life insurance in regards on how to buy it and when to buy it. Many consumers believe that you have to be a specific age to purchase it and that it only lasts for a period of time. Some policies, term life insurance, are for a limited time. Policies don’t always have to be expensive either. There are several things that you can look into for better rates.
Obtain Insurance at a Younger Age
There is no wrong age to purchase life insurance at. Circumstances change quickly and sudden losses do occur. It is ideal to have an insurance plan in place before entering middle age status. Those in their 20s often do not even consider life insurance at their age. Most have the impression that there are age restrictions in place. This is only the case with some life insurance agencies and the fact is you can lock in better rates at a young age.
One Agency for All Policies
Some insurance agencies offer several types of policies including life, home, auto and rental insurance. It is ideal to bundle services with these agencies. Many offer discounts for holding multiple policies with them. This can save hundreds of dollars per year just in discounts alone.
These savings can be put into an account for retirement, vacations or emergencies. Always ask multiple policy providers beforehand if they offer the discount.
Get the Right Policy
Two main types of life insurance policies exist, term life and permanent or whole life policies. Don’t make a big mistake by getting the wrong policy. If you are purchasing at a younger age, it is ideal to purchase permanent life insurance. This covers you from that day until the day of your passing. With term life, you are purchasing insurance for a specific period of time. Most policies are for periods of 20 to 30 years only. Once that period passes, you are no longer covered and all of the funds paid into the policy are lost.
List Someone Else as the Owner
Any life insurance monies are liable to be taxed as part of the estate if you “own” the policy. A good broker will advise his or her client to put the policy in the beneficiary’s name. Another option here is to put the policy in the name of the executor or trustee of the estate. These funds then leave the policy untaxable and fully available for the family to use.
Get Multiple Quotes
Selecting a life insurance agency based upon television ads and word of mouth referrals is not always the best option. It is ideal to obtain quotes online for from at least four different agencies. Each agency has guidelines in place with each different insurance amount level. It is important to read every quote entirely and complete direct side-by-side comparisons.
Increase as Needed
If you purchase life insurance at a young age, there is no need to purchase a large policy. You can increase the amount of life insurance you have as you age. As the needs in your life change, your policy needs can change with it.
Work with the Right Broker
The broker that you choose provides specific options based upon your immediate and future needs. The broker will only bring policies to your attention that you can change and not receive penalties from doing so and those that are ideal for you lifestyle needs.
The key to finding affordable, budget-friendly life insurance is being thorough in your search for the right agency. Being diligent in your research and working with a trustworthy broker will help you find the right policy at the right price. Remember to only purchase what you need for the specific time period you are at in your life.