Life insurance is something that you probably seecommercials for and briefly consider it. But have you ever really sat down andconsidered your need for a policy?
Whether you have children or not, life insurance issomething 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 weretire; financial security makes so much of a difference to our standard oflife and quality of living.
There’s no shortcut here; it’s all aboutcareful 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 orbecause everyone else your age is getting it.
Opting to purchase a life insurance policyinvolves a lot of deliberation and planning because it is an investment thatwill 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 forcalculating your need. First, if you have dependents, you need to considertheir 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 theexpenses that go along with it, plus any debt you’re carrying.
Another way to determine need is to multiply your averagesalary by six to ten years. For example, if you make $60,000 per year, youwould 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-termplans are great for those that are going through a life transition, need moretime to think and plan for the long-term, etc.
On the other hand, long-term life insurance plans are forthose that are considering the care of their family should something happen tothem. 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 anamount 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 youknow exactly what you’re getting.
Term life insurance is straight forward. Once your deathcertificate is submitted to the company, the amount is paid.
With whole life insurance, the amount that goes toward deathbenefits reduces over time while the cash value increases. This will be furtherexplained in the next section.
Which is better whole life or term insurance?
Whole life insurance is exactly what is sounds like. Thepolicy is good for your entire life.
As long you’re paying the premiums, you’re covered. You don’thave to worry about the policy ending or your health preventing coverage.
The money in your policy is split between death benefits andcash 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 duringretirement, or even fund the policy.
Term life insurance is much different. You are covered for aset 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. Ifyou plan to need money to cover your funeral, debt, etc. upon your death, termlife insurance is a great option.
7 Smart Tips ToHelp You Save Money On Life Insurance
Here,our objective is to list out some smart tips you must follow while purchasinglife insurance so that you can save money and not spend more than you’resupposed to!
1. Workout a plan
Even before you approach an insuranceprovider, you need to be fully sure of what your requirement is. How muchcoverage do you require?
How much does life insurance cost and what is the maximum amount of monthly premium you can comfortablypay? Who is going to be the benefactor of your policy? How long do you want totake 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.
Related posts:
- 6 Annual Expenses You Need To Save For This Year
- The Worst Could Happen: Common Home Insurance Claims to Know
- 10 Signs That Shows Your Financial Stability
2. Pickthe right type
You may or may not know about the two types oflife insurance – Term and Permanent. Permanent insurance is the type that canbe 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. Knowyour options
It might be tempting to take up the firstpolicy that’s shown to you and seems to have attractive rates, but you shouldbe 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 canmake a smarter, more informed decision.
4. Agematters
The longer you wait to make this decision, themore 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 andcommitments increase, and so does the rate of premiums and interest oninsurance.
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 planningfor the future earlier on in life, so that the latter part is comfortable andtension-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 orasking a broker is finding out more information from people who have existingpolicies.
Whether it’s friends or family, they can giveyou a real-time account of their experience with the policy so far and evengive you advice on what to do and what not to do.
Agents might not always tell you about hiddencauses or loopholes, but a well-wisher will be able to give you a morerealistic 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 amountwhen you’re nearing retirementand 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.
Whenyou come of age and financial position to start making investments, a lifeinsurance policy should definitely be on the cards.
Start making inquiries, ask around, do yourresearch and ensure that you only choose a policy that best suits your needs.
Also, it’s important to have a word with yourfamily and possible benefactors, so that you can keep yours and everyone else’sneeds 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 timeand deal with the stress of applying for term life insurance, you need to checkout Bestow.
What makes them stand out?
Bestow stands out from other companies in their fast andaffordable approach to coverage. Imagine spending literally minutes to getapproved for term life insurance and spending less per month than you spend ona 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 thatthe company wants to make things easy and wants people to be covered iswonderful.
They seem less like a mega-conglomerate that just wants yourmoney and more like a small-town company that actually cares about its clients.
The company genuinely seems to care that people and theirfamilies are covered for the unexpected. They don’t care about what your bloodwork 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 andaffordability, but it’s a wonderful company for those that don’t have a firmunderstanding of life insurance.
The company does an amazing job of putting things into alanguage everyone can understand. If you’re intimidated by jargon, Bestow isthe 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 BestowMember Portal.
Bestow Life Insurance is something that should definitely beconsidered. If you want to go ahead and jump on board, consider the short-termplan.
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 couldpave the way to a secure and stable future tomorrow!
