Life insurance is the one policy that you should happily pay even though you hope that the policy never pays off. Having good quality life insurance will make sure that your family and loved ones aren’t in a dire financial situation in the event that you pass away. It may cost a little bit of money, but the peace of mind knowing that your family is taken care of in the event of your death is well worth it. You can now have that peace of mind for half of what you could have a decade ago.
Allentown Morning Call recently performed a study on the cost of term life insurance and found that the average price of a term life insurance policy has dropped by 50% of what you would have paid 10 years ago for the same amount of coverage. This means that if you purchased a level-term life insurance policy a decade ago, chances are you can find a new life insurance policy that will provide the same amount of coverage and you’ll be writing much smaller checks each month.
The reason for this dramatic decrease in prices is two-fold. The first is that the internet has made it much easier for consumers to find the lowest prices and allowed companies to create policies and sell them with a lot lower overhead. The second reason that prices are decreasing is that people are living longer and out-living the term of their policies, meaning that insurance companies are paying out less meaning that they can pass those savings on to their customers.
In order to re-shop your policy, the best place to look is online. A simple Google search will reveal a number of different tools which will compare life insurance companies. It’s okay to go with the cheapest, but make sure it’s on the up and up. A company called AM Best rates insurance policies and other financial institutions and informs consumers as to which companies offer the best deals and are the most financially sound. You’ll want to make sure the company that you are considering is rated A+ or A++ by AM best.
When searching for insurance, make sure that you get level-term insurance over a period of 20 or 30 years. If someone offers you universal life, whole life, or variable life insurance and provides you a pitch about how your policy will be an investment and build you a cash value, just say no. These policies are much more expensive than traditional term insurance and you will end up paying a very-high fee to invest your money inside of your life insurance policy. In addition, if you were to die, your loved ones would lose all of the cash value inside of the policy and only be paid the face amount. You can also consider buying yourself short term life insurance policies as well. You can get more details about these short term life insurance policies from your insurance advisors as well.