Saving on Life Insurance: Scoring the Best Deal

Most people know they need life insurance but are afraid they'll have to spend an arm and a leg to pay for it. Truthfully, there are multiple ways to score affordable life insurance and they're much easier than you might have thought. Getting Started Knowing what kind of life insurance appeals to you will help ease you into the shopping process. Generally speaking, there are two types of life insurance: term life insurance and permanent life insurance. Term Life Insurance Term life insurance covers you for a "term" or certain period of time. This means a death benefit will only be paid out if you die during that term. Terms range from five to 30 years; 20-year term policies are most common, according to the Insurance Information Institute (I.I.I.). Most policies can be renewed after they expire, although the premium may increase as you age and insurers typically won't renew a term policy after you reach your 80th birthday. Permanent Life Insurance Permanent life insurance comes in four forms: Whole, Variable, Universal and Variable-Universal, and all of them will pay out a death benefit whether you die right after you sign the policy or decades from now. Each form of permanent life insurance has different characteristics, although most permanent life insurance includes an added cash value that grows over the years. Because of these and other benefits, permanent policies tend to be more costly that term policies. A Time to Shop Once you've researched the different policy types and found one that appeals to you, it's time to start looking. Start by inquiring about employer-sponsored life insurance. Group life insurance tends to be less expensive because some employers subsidize the cost of premiums for their employees. Another large benefit to employer-sponsored life insurance is that you're less likely to have to pass a physical exam. However, the I.I.I. points out that you should still compare group rates with individual life insurance to make sure you're getting the best deal. Once you've discovered what your employer offers in terms of life insurance, it's time to look into individual rates. The Internet has made this easier than ever, and independent referral services like InsureMe can provide you with multiple quotes from insurers to compare free of charge. In addition to seeing which company can give you the best deal, you should also investigate the following before choosing an insurer: Financial stability. The cheapest policy in the state won't do your family any good if the company can't pay the claim or becomes insolvent. Rating companies like A.M. Best can give you this information free of charge. Customer service. Few people know the value of good customer service until they've had a bad experience. Prevent bad experiences from the outset and check customer satisfaction ratings with A.M. Best. Make sure term policies carry a renewal guarantee. A renewal clause will ensure that you'll be able to renew your policy after your term expires. While you may pay more to renew your policy (due to your increase in age), chances are that you won't have to undergo a medical exam to renew--which will be of major benefit if your health has deteriorated since you first purchased the policy. More Tips for the Road You can ensure the lowest possible life insurance premium and: Get healthy. If you smoke or are overweight, you'll almost certainly pay more for life insurance--especially on an individual policy. So put down the smokes and develop an exercise regimen to see your life insurance premiums fall. Inquire about discounts. The I.I.I. reports that many insurers grant discounts for specified amounts. For example, you may actually pay more for a $200,000 policy than you would for a $250,000. Ask about these discounts before you sign a policy and see a reduction in your premium. Buy young. While younger adults tend to let life insurance fall by the wayside, purchasing a policy while you're young and free of most age-related ailments will help you secure an affordable life insurance policy for years to come. Start Planning for the Future Today While life insurance may seem like just another bill to pay, remember that it's an important part of taking care of your loved ones. But, it doesn't have to eat up your paycheck--use these tips to find affordable life insurance today. _________________________________________________________________ _____ About InsureMe InsureMe links agents nationwide with consumers shopping for insurance. Specializing in health, auto, home, long-term care and life insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.