How to Get Cheap Life Insurance

how to get cheap life insurance - shieldwise
by shieldwise

Life insurance is an agreement between a person and their insurance company. An insurance company makes a contract with a policyholder that states the insurer will pay an amount of money to the policyholder and their beneficiaries in exchange for a premium monthly payment.

When you grow older, get married and have children, you’ll realize then that life insurance is a basic need to protect your family financially even after your death. You usually have two categories of life insurance which are term life insurance and whole life insurance.

Between these two, term life insurance is the cheaper one.

Term life insurance

Term life insurance is like auto insurance. For instance with car insurance, you have to pay a premium every month for the time duration you wish to insure your car. This type of insurance is always cheaper.

The reason is because the coverage is provided only for a fixed amount of time. There is a possibility that the company may never have to pay out as the insurer in most cases outlives the term and policy expires.

Now, let’s talk about how a person can get cheap life insurance.

There are different policies which help you to find the most affordable life insurance. Such as:

Mortgage term insurance

This type of insurance covers your mortgage if you happen to die within a set period. The plus point of this insurance is as you know your mortgage amount reduces over time, so the amount the insurance pays also decreases. That is why it is sometimes called as decreasing term insurance.

Whole life insurance

This type of insurance is used to minimize inheritance tax upon one’s death. In other words, the insurance will cover your inheritance tax bill upon death.

Life insurance investment

This type of insurance is more of an investment. This includes endowments and is mostly used in investment zones.

Get Cheap Life Insurance Tips

  • As we have said before, the term insurance policy is the cheapest and most affordable option in general for people. So, get term insurance if you want cheap life insurance.
  • You can get manageable premiums when you are younger and healthier.
  • Plan out your expenses to determine how much coverage you need.
  • Research and compare between multiple insurers to save money.
  • Take note that if you die within the specific period mentioned in a term policy the company will payout.
  • Many policies may grant level premiums.
  • Others offer increasing or reducing coverage over time.
  • There is also an option to switch from term insurance to permanent insurance.

Are term insurance plans cheap life insurance?

If you are going to get term insurance, you should consider the following features:

Sum assured

This is the amount of money that is paid after your demise.

Entry age

The age limit for entry age is usually 18-65 years.

Maturity age

The policy expires at its maturity age. For most companies, the maturity age is 75 years. Though it could be up to 80 years in some cases.

Tenure

This is the duration of your life coverage. It may vary from 10-40 years depending on the age you purchase the plan at or the type of plan. You should try to get the highest possible tenure.

Claim settlement ratio

You should select a company based on its claim settlement ratio. This is the percentage of claims that are honoured verses how many claims are filed.

Riders

This is the additional coverage provided by the company to make your plan better.

Health checks

The company may want you to do health checks depending on your age or if you are applying for a high insurance coverage amount. For instance, if you are over the age of 50 you are exposed to higher health risks and therefore you may have to go through necessary health tests.

How to buy a term life insurance policy

You can buy a term plan directly from the online site of an insurance company or through an insurance forum. If you buy through an insurance forum or aggregator, they will let you make comparisons of various products with their available offers.

This will help you out when buying a term plan as they take into account your expectations and preferences.

On the other hand, through offline, you can go to your nearest insurance offices with your documents and can easily get a term plan.

So, this blog will help you a lot if you’re looking for affordable cheap life insurance.

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Categories: Life Insurance
Tags: How To