4-Step Guide to Getting Cheap Life Insurance
Reader’s Question:
How do I find affordable life insurance? I’m looking for something that I won’t have to keep forever as well. Any tips?
Chad
Houston, TX
Now more than ever, with the uncertain economy and all, is life insurance such an important financial asset. The right kind of policy can save you a lot of money as well. Here are some tips to get you started:
Step 1: Find the Right Coverage Type
First, you have to know what type of policy fits you. Since you mentioned you don’t want to keep coverage forever, then a term life insurance plan is good for you. It’s relatively cheap considering the huge amount of face value or coverage it can give. Depending on the insurers, you can choose 5, 10, 15, 20, even 30-year terms. This is great for people who wish to get coverage while raising a family or paying-off mortgage.
Step 2: Determine the Right Amount of Coverage
Next, you should find out how much face value or coverage your policy should have. Do consider the following: Projected living expenses of your dependents for the next several years (at least), amount of annual income to be replaced, funeral costs, amount of money needed to settle debt and other financial obligations, and supplementing non-monetary assets like health insurance.
Step 3: Compare Your Options
Now that you know the type of policy and coverage suiting you, it’s now time to shop for the best policy. Online life insurance comparison websites (like this one) allows you to run free quote checks and compare rates coming from a wide-selection of life insurers. Doing this will save time, effort and maximize your chances of finding cheap life insurance online.
Step 4: Understand Your Policy
Before signing the agreement, please do read and understand the fine print carefully. Yes, it can be a drag but it will be an even bigger drag if your insurer decides to increase your rates, or not cover certain clauses in your policy in the future.