| When purchasing life insurance, you should look for the best policy for your needs at the most competitive price. Here are ways to maximize your life insurance dollars:
- Shop around for the best price
There are thousands of companies selling life insurance. Get the names of several reputable insurers with solid financial ratings. Then compare price and coverage. Get a least three quotes on comparable policies.
- Buy the right amount of insurance
Work with a knowledgeable life insurance agent to determine the amount and type of insurance you actually need to provide for your loved ones.
- Look for guaranteed renewal policies, if you buy term insurance
That way, you won’t have to shop for a new policy (with higher premiums) when you are older.
- Buy a policy while you are in good health
The best time to get a good price is when you are in good health. Don’t wait until you develop medical problems to consider purchasing life insurance.
- Take care of yourself
Don’t smoke. Maintain a healthy weight and exercise regularly.
- Look into group insurance
Consider participating in your employer-sponsored life insurance program, even if you have to contribute to it financially. Known as group insurance, this can be less expensive than comparable plans offered outside of work. You may be able to obtain coverage up to a certain level without providing evidence of good health, a key advantage for many people. Additionally, many plans are administered through payroll deduction, which can be an added service - if you are not good at bill paying. Lastly, many plans allow you to continue your coverage after you leave your employer by continuing to pay premiums or converting the coverage to an individual policy.
Source: Insurance Information Institute, Inc. www.iii.org
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