You may wonder why you need life insurance – after all, with the rising cost of living, who needs to pay another bill? While no one likes to consider death, life insurance is an inevitable expense associated with living and having dependents. Consider the following questions before you determine you really don’t need life insurance:
- Will your family be able to pay the mortgage and bills in the event of your unexpected death, illness, redundancy, disability or unemployment?
- Do you have dependent children that still need to attend university; will they be able to pay for their education if you die?
- If you die, will your spouse have to hire a caregiver to take care of the children?
- If you die, can your family easily replace your salary to maintain their current standard of living without your income?
- Will your business partner be prepared to maintain the business in the event of your death?
When you review your answers, it is clear to see why life insurance is a necessary expenditure. In the event of your unforeseen death, your loved ones could lose the family home you worked so hard to find and your valued business partner could lose the company you worked so hard to build. A life insurance policy ensures that your dependents will be taken care of in the event of your death and can enjoy the same standard of living.
There are many affordable life insurance options online, where you can easily review policies and request a quote any time of the day or night. In just a few hours, you can compare premiums and choose coverage that is the best option for your dependents at a budget-conscious price.
Don’t leave your family or business associates in the lurch if you die – make sure you have life insurance to take care of their basic needs if the worst should occur.
How to Save on Life Insurance Premium?
Now that you realize life insurance is a necessity, how can you save money on this essential expenditure? Consider these top 5 life insurance savings tips to get the most coverage for the least price.
- Purchase life insurance when you are young. Because life insurance premiums are based on the risk of whether you will cash the policy, the older you get the higher it costs to purchase cover. Locking in life insurance rates when you are younger ensures you will be able to afford to maintain cover as you get older.
- Only purchase the cover you need. Purchase only the life insurance you need for the period of time you will need it. Minimizing the term and sum assured to meet your basic needs can significantly reduce your premiums.
- Consider your billing and payment options because many insurers offer you a break on premium costs when you pay annually as opposed to monthly or if you pay by electronic funds transfer.
- Take proper care of your health. Have regular checkups to ensure you are in the best health and avoid smoking or excessive use of alcohol, which can boost your life insurance premiums. Your current health, your medical history and whether you smoke or drink all have a major impact on how much you will pay for life insurance so take good care of yourself.5. Carefully consider your occupation and hobbies. Working in a high risk occupation or engaging in dangerous hobbies can cost you quite a bit when it comes to insurance premiums. High risk occupations include soldier, deep-sea fisherperson, oil riggers, demolition expert. Hobbies such as piloting and diving or extreme sports can also raise your life insurance premiums.
By carefully considering basic everyday aspects of your lifestyle, you can minimize the price you pay for life insurance.