7 Smart Tips To Help You Save Money On Life Insurance
This post may contain affiliate links which might earn us money. Please read my Disclosure and Privacy policies hereLife insurance is something that you probably see commercials for and briefly consider it. But have you ever really sat down and considered your need for a policy?
Whether you have children or not, life insurance is something you need to consider for a variety of reasons.
Looking for tips to help you save money on life insurance? We got seven tips to help you out, let’s begin.
Securing your life during tough times isn’t just a smart move, it’s a necessity. Life is unpredictable, and the least you can do is prepare yourself and your loved ones for such times.
This preparation is both emotional and logical, and the logical part involves finances in many aspects.
Right from the time we’re born to the time we retire; financial security makes so much of a difference to our standard of life and quality of living.
There’s no shortcut here; it’s all about careful planning and smart choices that will benefit us in the long run.
This is where the importance of life insurance plays a significant role. Insurance isn’t just something you should get because someone told you to or because everyone else your age is getting it.
Opting to purchase a life insurance policy involves a lot of deliberation and planning because it is an investment that will shield your life at the most unexpected times.
Whether it’s a major expense, college tuition or even just a safety net for your loved ones if something were to happen to you, insurance is that back-up plan that you can rely on.
To help you understand how important is having life insurance we are going to break it down by answering some questions you might have.
How much life insurance do I need?
There are two methods that financial experts recommend for calculating your need. First, if you have dependents, you need to consider their financial needs should you pass away.
How much money will they need to cover the cost of living?
You will also need to consider the cost of a funeral and the expenses that go along with it, plus any debt you’re carrying.
Another way to determine need is to multiply your average salary by six to ten years. For example, if you make $60,000 per year, you would need a policy of $360,000 to $600,000.
What are the different types of life insurance?
There is whole life insurance and term life insurance. Short-term plans are great for those that are going through a life transition, need more time to think and plan for the long-term, etc.
On the other hand, long-term life insurance plans are for those that are considering the care of their family should something happen to them. Term policies cover a set number of years.
Bestow offers both short-term and long-term life insurance plans and 2, 10, and 20-year policies.
How do life insurance policies work?
The way life insurance policies work is that you pay an amount on a regular basis for your policy and, should something happen to you, the life insurance company will pay out an agreed-upon sum of money.
It is vital that you read and understand a policy so that you know exactly what you’re getting.
Term life insurance is straight forward. Once your death certificate is submitted to the company, the amount is paid.
With whole life insurance, the amount that goes toward death benefits reduces over time while the cash value increases. This will be further explained in the next section.
Which is better whole life or term insurance?
Whole life insurance is exactly what is sounds like. The policy is good for your entire life.
As long you’re paying the premiums, you’re covered. You don’t have to worry about the policy ending or your health preventing coverage.
The money in your policy is split between death benefits and cash value. As you get older, more of the benefits are changed to cash value.
With this cash value, you can take out a loan, use it during retirement, or even fund the policy.
Term life insurance is much different. You are covered for a set number of years and will need to renew your policy.
However, most financial gurus recommend term life insurance. One of the largest benefits is that term life insurance is inexpensive.
Most people, no matter their budget, can afford a policy. If you plan to need money to cover your funeral, debt, etc. upon your death, term life insurance is a great option.
7 Smart Tips To Help You Save Money On Life Insurance
Here, our objective is to list out some smart tips you must follow while purchasing life insurance so that you can save money and not spend more than you’re supposed to!
1. Work out a plan
Even before you approach an insurance provider, you need to be fully sure of what your requirement is. How much coverage do you require?
How much does life insurance cost and what is the maximum amount of monthly premium you can comfortably pay? Who is going to be the benefactor of your policy? How long do you want to take out a policy for?
Once you’ve figured out the answers to these vital questions, you’ll be in a much better place to make a smart decision.
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2. Pick the right type
You may or may not know about the two types of life insurance – Term and Permanent. Permanent insurance is the type that can be encashed by the benefactor in case of death.
Term insurance, on the other hand, can be taken for a shorter period of time and also withdrawn at any given point.
Most young professionals prefer to go for term insurance because it can be useful when there are sudden major expenses.
The premium for term insurance is also cheaper, and withdrawal policies are less stringent.
If cost saving is an important factor, then Term Life Insurance is definitely the more suitable option for you.
3. Know your options
It might be tempting to take up the first policy that’s shown to you and seems to have attractive rates, but you should be smarter than that.
The safer route to take would be to gather multiple quotes from different insurance providers and weight out your options.
If you’re not sure of where to get these quotes from, you can always hire a broker/agent to get the best quotes for you.
With their expertise and guidance, you can make a smarter, more informed decision.
4. Age matters
The longer you wait to make this decision, the more expensive it’s going to be for you. Time is quite an important factor when it comes to taking any financial decision, and insurance is an important one on that list.
As you get older your responsibilities and commitments increase, and so does the rate of premiums and interest on insurance.
Younger people are given much better deals because their potential to pay a premium and also upgrade in the future is much higher.
It also means that there’s more time for your policy to mature and increase in value.
That being said, you need to start planning for the future earlier on in life, so that the latter part is comfortable and tension-free.
5. Staying loyal
If you already have a bank account with a certain financial provider or are availing any other monetary services, it’s a smart choice to contact them first for a suitable life insurance policy.
The reason for this being the customer loyalty that the company is likely to value, giving you preferential rates and schemes that a first-time customer may not be offered.
You can very well take advantage of this relationship you share with them and ask for discounted rates.
6. Asking around
Even better than just internet research or asking a broker is finding out more information from people who have existing policies.
Whether it’s friends or family, they can give you a real-time account of their experience with the policy so far and even give you advice on what to do and what not to do.
Agents might not always tell you about hidden causes or loopholes, but a well-wisher will be able to give you a more realistic review about a policy.
7. Health and happiness
This tip matters a lot, especially as you’re growing older. The better you maintain your vitality and health, the more
Yes, they’re back-ups, but if you have the chance to let your life insurance policy mature till its full term and then cash out a sizeable about, why not go for it?
After all, you’re more likely to require and use this cash amount when you’re nearing retirement and don’t have youth on your side to support your endeavors.
Then all you need to do is relax and enjoy the fruit of smart decisions taken at the right time.
When you come of age and financial position to start making investments, a life insurance policy should definitely be on the cards.
Start making inquiries, ask around, do your research and ensure that you only choose a policy that best suits your needs.
Also, it’s important to have a word with your family and possible benefactors, so that you can keep yours and everyone else’s needs in mind too.
Bestow Life Insurance
Who is Bestow?
Bestow is an amazing company because they are completely changing the way policies are provided.
Instead of needing to get blood tests and spend weeks getting approved, Bestow customers can get coverage in just a few minutes.
If you’ve always thought you were too busy to spend the time and deal with the stress of applying for term life insurance, you need to check out Bestow.
What makes them stand out?
Bestow stands out from other companies in their fast and affordable approach to coverage. Imagine spending literally minutes to get approved for term life insurance and spending less per month than you spend on a large pizza.
Think about that for a minute.
When has getting insurance ever been that easy and affordable?
Is Bestow Life Insurance good?
Bestow, in my opinion, is absolutely amazing. The fact that the company wants to make things easy and wants people to be covered is wonderful.
They seem less like a mega-conglomerate that just wants your money and more like a small-town company that actually cares about its clients.
The company genuinely seems to care that people and their families are covered for the unexpected. They don’t care about what your blood work has to say – they care about helping people. That’s awesome.
Why Should I Consider a Bestow Plan?
Bestow not only offers an easy application and affordability, but it’s a wonderful company for those that don’t have a firm understanding of life insurance.
The company does an amazing job of putting things into a language everyone can understand. If you’re intimidated by jargon, Bestow is the company for you.
Once Approved, How Do I Access My Policy?
You’ll be able to access everything about your policy, including billing, policy details, and contact information through the Bestow Member Portal.
Bestow Life Insurance is something that should definitely be considered. If you want to go ahead and jump on board, consider the short-term plan.
This gives you coverage while you plan for the long-term. Once you’re ready, and better understand your needs, you can then switch to a long-term plan.
In other words, if you want your family to be covered should something happen to you, stop waiting. Bestow makes it so easy and affordable to cover the future.
Conclusion to Save Money On Life Insurance
A smart financial decision made today could pave the way to a secure and stable future tomorrow!
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