Life Insurance: What Everyone Should Know
insurance. Chances are you know you need it, but you have concerns about whether you
can afford it. The price you pay for life insurance depends on your age, health, and
lifestyle, but there are ways to lower your insurance premiums, even if you fall into a
Following are some simple suggestions from Insurance.com, an
affiliate of Fidelity Investments:
1. Check out the rates. Premiums can vary greatly based on
the term length and the amount of coverage you need. Avoiding the hassle of contacting
each insurance company separately, Insurance.com makes it easy to shop for life insurance.
The site allows you to receive free
competitive quotes from leading carriers across the country. The process involves a
few basic questions and takes only a couple of minutes.
2. Round up. Often, you'll actually pay less for a little
more insurance as you approach multiples of $250,000 in coverage. For example, $240,000 of
coverage might cost $275 per year, while $250,000 in coverage might cost only $260 per
year. Find out the rate per $1,000 of coverage, which often drops once you pass a certain
level of coverage. This figure will help you determine how to get the most insurance for
the least money.
3. Consider quitting. Everyone knows that you'll save money
on your insurance premiums if you
quit smoking, start exercising and lose weight. However, you might be surprised to find
out just how much you can save. Many companies charge smokers double the non-smoker rate
4. Forget the riders. While riders may add value to your life insurance policy in certain
situations, many-such as accidental death and child coverage-may simply be unnecessary
expenses, depending on your personal circumstances. Paying lots of extra money to cover an
event, if it's almost guaranteed not to happen to you, just doesn't make sense when you're
trying to cut costs. Additionally, many riders simply provide duplicate coverage once your
overall insurance needs are met.
5. Find out about hidden fees. You may not realize it, but
your insurance could end up
costing you more if you choose to make "convenient monthly payments" rather than
paying the entire premium up front. Before you choose a payment plan, compare the single
payment price to the total cost of the monthly payments. Do the math, and decide whether
the convenience is worthwhile.
For more information, visit www.insurance.com
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