While life insurance is often considered a luxury, with many people believing they will never use it in their lifetime unexpected and unwanted events can occur at any time of the day. So, it’s essential to be prepared for the unexpected and protect your loved ones with life insurance.
What is your take on life insurance? Do you consider it essential, or is it just another expense for you?
The first thing you must do is understand that buying a life insurance policy is a necessity. However, if purchased with the help of a professional, you can get affordable life insurance in Phoenix, AZ.
This article discusses some tips to save money on life insurance policies.
How to Save Money on Life Insurance Policy?
Life insurance in Phoenix, AZ, is affordable if you follow these money-saving tips.
Buy Insurance Now
As you age, the likelihood of developing a chronic disease increase, making it important to have a life insurance policy in place. The younger you are, the healthier you tend to be, which means that purchasing life insurance in your 20s can provide affordable premiums, typically ranging from $30 to $45 per month.
Even if your life expectancy is between 60 to 65 years, paying the same amount for decades can result in a six-figure death benefit, making it a wise investment. So, if you want to avoid paying higher premiums as you age, it’s recommended to buy life insurance when you’re young.
Work With a Life Insurance Agency/Broker
Never make the mistake of buying the first life insurance policy you come across. Unfortunately, some policy buyers see an ad and purchase a policy without. fully understanding its terms and conditions, only to regret it later.
Instead, it’s recommended to hire a licensed professional life insurance broker. An insurance broker can help find the best terms for you, as they are aware of the prevailing rates and the best deals. They do not represent a specific insurance company, so they can provide unbiased advice and help you make an informed decision.
Buy Term Life Insurance
There are three life insurance policies: term, whole life insurance, and Universal life insurance.
Term life insurance is only for a specific term, say 20 years. Your beneficiaries receive the death benefit if an unwanted event happens during this term.
Compared to whole life insurance and universal life insurance, you pay a lower premium for term life insurance policies.
But term life insurance offers a cushion for only a specific period and can come in handy if you have young children and want to secure their future after you.
It is advised to consult your life insurance agent. Learn which life insurance policy is suitable for you and your family’s needs and goals.
Buy Only the Required Coverage
When buying life insurance, it’s important to only purchase the coverage that you need. While a six-figure death benefit may sound appealing, it may not be necessary for your unique situation. Consider your age, family members, dependents, and their financial needs when deciding on the type of coverage you need.
Based on your unique situation, your agent will guide you on what’s best. It’s not wise to purchase a high death benefit coverage and struggle to pay the premiums. So, it’s important to purchase the coverage you need based on your financial situation and future needs.
Keep Yourself Healthy
Life insurance policies ensure a death benefit in case of an unwanted event.
Taking unnecessary risks with your life, such as smoking, drinking, and engaging in activities that increase the possibility of early death, is wrong. If you have any habits that negatively affect your health or develop any medical conditions, your life insurance premium will rise eventually. To keep your premium low, it’s important to take care of your health by maintaining a healthy diet, regularly exercising, and avoiding risky behavior.
Pay Premium Annually
There are two ways you can pay premiums, annually and monthly. While monthly premium payment sounds convenient, it involves extra fees, which increases the premium amount. However, you pay the premiums upfront once a year. Then, are not required to bother about the premiums for an entire year. In addition, you also get a 2%-8% discount if you pay annual premiums.
Shop A Bundle for Discounts
If you have multiple insurance policies to buy, bundle them, and you may qualify for a discount. For instance, if you have car insurance, home insurance, renter’s insurance, and life insurance all with the same insurer, you may qualify for a bundle discount. Your insurance agent can advise you on whether bundling your policies is the right choice for you.
Get Medical Check-up
Many insurance companies require a medical check-up before selling a life insurance policy. Therefore, it is advised that you get tested and discuss your health issues upfront. If you are clean, you are required to pay a lower premium.
Conclusion
Careful consideration, proper guidance, and putting in the effort can pay off when it comes to buying life insurance in Phoenix, AZ. A life insurance policy can be a life-saver for your family in your absence, and it is not an expense if you consider the above tips while buying the policy. Hire an insurance agent now and learn the type of life insurance policy you need for the best coverage.
