Life insurance is becoming increasingly popular in the United States, but a third of families remain uninsured. Many would like to insure their lives, but not everyone can be available, or rather they think so. In fact, you can get affordable life insurance rates if you know how to do it.
If you want to know about it, read on this article that we prepared especially for you.
Factors that affect the cost of life insurance
Different conditions of your life will affect the insurance rate for you. Depending on your gender, age, profession, medical history, credit history, driving history, bad habits and even a hobby, your insurance rate will vary. Some of these factors are a given, such as age or a history of the disease, while others are in your ability to control.
How to influence these factors
Our life is built using our habits. Lifestyle determines the risks to your health and life. All this is taken into account by insurance companies in determining the cost and therefore the availability of life insurance for you. For example, by improving the condition of your credit, you will receive not only more financial opportunities for obtaining loans, but also a lower rate for all types of insurance.
Smoking increases your insurance rates, as you become more susceptible to various diseases, including fatal ones. Five years without smoking in most cases will reduce the insurance rate for you, so it’s worth getting rid of this bad habit. This will help you not only reduce the harm to health, but also save your money that you spent on cigarettes, as well as reduce the rate of life insurance.
Types of policies for affordable life insurance rates
To get the affordable rates you should know which insurance policies initially offer lower life insurance rates.
Insurance policy of final expenses
This is one type of insurance that can provide your beneficiary with a payment to cover the cost of the funeral in the event of your death for a small insurance premium. The amount of compensation is often fixed and will vary on average from 5 to 25 thousand dollars, depending on the circs of your life. Your beneficiaries will be able to receive this money for use in their discretion, not just to pay for the funeral.
This type of affordable life insurance rates are most often bought for older people, but anyone can help their loved ones in this way if something happens to him and he dies. The main thing is to pay attention to all the conditions of the insurance policy so that you clearly understand what you are buying and what your beneficiaries will receive. Different companies may offer different conditions in the insurance policy of final costs.
Term Life Insurance Policy
By purchasing a Term Life Insurance policy, for a certain fixed period of time, you allow your beneficiary to receive amends of the costs in the event you suddenly dead. To get insurance benefits, the person to whom you are addressing the compensation will have to file a claim.
On the example of a young healthy man of thirty years, insurance for 500 thousand dollars will cost $ 400 per year when establishing the period of validity of the policy Term life insurance for 20 years. These are quite the affordable life insurance rates, even with a low income level.
Choosing a Term life insurance policy you lose the opportunity to borrow money, unlike other types of insurance. You can insure in this way in the amount of 50 thousand dollars to a million dollars for a period of 1 to 35 years. This type of life insurance has its drawbacks, but at the same time it is one of the most affordable options.
What else you need to know
To get more affordable life insurance rates, it is not enough just to choose one of the policies described above. You should consider a few more nuances that will help you save more money on life insurance.
Research offers from different insurers
Do not grab the first offer that an insurance agent made. Find out what life insurance offers have from other agents from different companies. Of course, it will take a little longer, but in the end it may be more profitable for you.
Find out how financially stable the insurer
When you have found the most interesting life insurance offer, find out how reliable and stable the insurer is. You can use the information of rating agencies that track insurance companies and have the most up-to-date information about them.
Buying insurance from an unreliable insurer It is not worth risk, even if it offers a very cheap policy. The financially unstable insurer will then simply not be able to pay you insurance compensation.
You can find information about insurer on the Internet. Also read reviews about the company from customers, both positive and negative.
If possible, combine your insurance packages
If you have a car or house that you are going to insure, then you can combine these types of insurance with life insurance policy. In such cases, companies are most often willing to offer a discount when you purchase package insurance.
In addition, you can select another insurer, which can offer you more favorable terms with less constraints. When you go from one to another, by purchasing full insurance, you become a welcome customer and you can get a discount, which will make the affordable life insurance rates.
Buy insurance as soon as possible
When you are young, then life insurance rates will be lower for you. The younger a person is, the less health problems he usually has, which means less risk. While you feel good, take advantage of this state, because we never know how and when our health can change.
Insurance may not be so expensive that you cannot afford it, even with a low income level. Using a few simple tips, you can not only find the affordable life insurance rates for yourself, but also save money on the purchase of an insurance policy.