Cheap Life Insurance Policy - We All Want To Save Money, Here's How
We all want to save money and we all want to be safe. But how can you do that? Here's how: by investing in life insurance policies. Cheap life insurance policy helps you save money by reimbursing your family members for your funeral expenses up to a certain amount set in the policy. Insurers usually charge a premium of $1,000, which is far less expensive than having your own funeral arrangements, which can cost on average around $10,000, according to Forbes . A cheap life insurance policy may seem like too good of an offer at first glance but it may not always be that way after examination when years pass. If you decide to take advantage of this policy, then you should make sure that the insurer is offering the cheapest possible rates. For example, in 2011 "life insurance prices" were a mere $6.99 per $1,000 of coverage , while a cheap life insurance policy can pay as much as $8.58 per thousand dollars of coverage to your heirs. If you were to take such an "asset-backed" life insurance policy instead of what we saw above, the premium would be more than double and would rise to around $264 annually. Another advantage that financial planners like me like is that they do not have to report your death as it will automatically be reported by the company who issued it. This means that it will not affect your financial status with other agencies, which is a very important factor when you wish to keep your affairs private.
Whether you take out a cheap life insurance policy or decide to invest in other policies, make sure to do your homework on the best insurance companies, such as Direct General Insurance , if you need some assistance and direction on how to acquire affordable life insurance. Here are some tips on making sure you get the most for your money:
1. Make sure that the policy is whole life because it is cheaper than term plans . You can read more about whole life vs. term life here . 2. Make sure that the policy is one that can be paid to you directly . Term plans are not ideal because they must be funded through a lump-sum payment, which could cause a lot of problems for your family. For example, if you have assets and the policy cannot be paid directly, then you are required to sell them or use them as collateral for an advance. But the fact is that selling off your assets does not allow your loved ones to get something in return - they receive nothing but a check from the insurance company. While term plans are cheaper, term cash value funds are no longer available and with no collateral they can become worthless fast. 3. Make sure that the insurer is not charging a "margin" on the policy. This means that if you are buying a $100,000 policy, you may have to pay an additional fee of $5,000 or more for the insurance company taking out an additional $95,000 investment. The reason why this happens is because they are trying to make up for their losses. If your thought process was correct when you took out the policy and you do not need it because your assets exceed the collateral on the policy, then there is no reason why they would need to add this fee. On the other hand, by comparison, if you are investing in other alternatives such as stocks, real estate or private equity, you may have to pay a slight fee of less than 1% and could go as low as 0.5% for some funds. So it is far more beneficial to invest in a cheap life insurance policy. 4. Be careful who you buy it from. If the insurance company is too close to where you live or work, then they have an unfair advantage over the others since they can easily make deals with relatives or your friends and family members who know more about your needs or wants than you do yourself. There is also a risk for fraud if you don't do the proper background check and research. 5. Do your research on the insurance company. Make sure that the company has been in business for a while and has a good reputation, which means they have satisfied customers and is not in financial trouble. 6. Try to make sure that you are getting the lowest price possible because life insurance companies have different ways of calculating their policies as opposed to stocks, bonds and mutual funds. You can read more about this here . 7. If you have any questions, be sure that the company is willing to answer them or refer you to another company who has the same product. 8. Use an advisor like a financial planner if you need any help or advice. They will not only direct you in what investments to make, but they will also advise on what type of policies would be best for your needs and at what price as well as when to purchase them. 9. Make sure that the policy does not have a "cliff" or gap where your coverage may start if you die prematurely - read more here .
10. Make sure that you get a death benefit rider on the policy if you are older than 55. This will bring up your premium, but it is worth it as it allows your beneficiaries to receive a lump sum payment instead of monthly payments after you die.
If you need anything else, please do not hesitate to contact us and we will try our best to help you make a sound decision with your life insurance policy, no matter how old or young or healthy or unhealthy you are because even the healthiest people can die prematurely from an accident.
For more information about our company visit: http://www.charlessauerpowerseminars.com/life-insurance-policy.html
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For more information or questions regarding policies or life insurance policy, please visit: http://www.charlessauerpowerseminars.com/whole-life-insurance-policy.html This is a very comprehensive website that can tell you everything you need to know about life insurance in general, whether it is whole life or universal life and much more! This blog entry was updated by Life Insurance Blog Webmaster on January 26, 2013.
Conclusion: how to buy the best life insurance for you
Life insurance is one of those things. Where people will buy it and think they got a good deal until they realize that the cost was far higher than what they could afforded but now it's too late because 30 days have passed.
Life insurance is like fire insurance, you only need it if you own a home or if you have a business that has inventory or something of value that would be hard to replace in the event of a disaster or theft. You also need life insurance if you have family dependent upon your income.
Are there exceptions? Of course there are exceptions to every rule.