Checklist for Life: Things to Do before You Have a Baby

  

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Having a baby is a huge, but rewarding, step for a couple. There is so much to prepare for that it is sometimes difficult to keep everything straight. The list is almost endless. You must prepare your home, line up childcare, take maternity leave, purchase a seemingly endless list of supplies, and so much more. It is important that you do not let the financial preparations of having a child fall through the cracks.

A Financial Checklist for Your Baby’s Birth

1. Open Savings Accounts

   

   You can never start saving for college too soon. Contributing to a college savings account early and often will help secure money for schooling or to start a professional career. Many parents also open a separate flexible savings account for the child. Use this account to set aside any money that is not going toward college savings.

2. Add your Child to Your Will

   Add your child as a beneficiary of your will. If you don’t have a will, this is the perfect time to have one drawn up. Also, add your child as a beneficiary of your life insurance. Of course, if you don’t have life insurance...

3. Quote Life Insurance

   A life insurance policy helps guarantee the financial security of your family in the event of your passing. Most experts recommend a term life insurance policy that will at least cover the time period necessary for your child to reach adulthood.

4. Update Your Health Insurance

   Babies require specialized and regular medical attention. Make sure they’re covered. If you or your spouse currently has health insurance, add your child to the policy. For assistance, talk to your insurance provider or your HR representative if your policy is provided through work. They will help you understand what is needed and the additional costs associated. If you don’t have coverage or can’t add your child to your existing plan, start shopping for health insurance for the baby.

There are other things you will have to prepare for. For instance, you should also update your tax documents and create a budget for your family expenses.

Your life is about to change forever. You are now responsible for another human life. Enjoy watching your child grow into adulthood with the confidence that he or she is protected in every way.

How have you prepared for your children? Let us know in the comments.

Life Insurance 101: Types of Permanent Life Insurance

  

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What Is Permanent Life Insurance

Whole Life Insurance

Variable Life Insurance

Universal Life Insurance

Variable Universal Life Insurance

As the name suggests, variable universal life insurance combines variable and universal features. These are the most flexible policies. You have the option to have some control over your payments, while also utilizing an investment portfolio. Since you have the options of paying higher premiums, you can grow your investments faster. You can also skip the occasional payment when times are tight.

Thank you for your attention. That was a lot to get through in one class. There are many other types of permanent life insurance policies. Going through all of them would take the entire semester. Any questions?

Yes. We will be going back to term life insurance. Make sure to do the reading on term life options in your text to prepare for next week.

Class is dismissed.

Checklist for Life: Things to do before you’re 30

  

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As you enter your 30s you should be seeking stability in your life: personally, professionally, and financially.

You are moving away from the more care-free exploration of your 20s. You may be thinking about marriage or already married or in stable long term relationships. A family is on the horizon. It may already be a reality. You are likely interested in owning your first home. You have developed long-term professional and financial goals. There are many things you should do to keep you on track to achieve your goals.

Decrease Your Debt

You should make an effort to decrease the debts you’ve accumulated through your 20s. If you’re student loans have not been paid off, try to divert extra money to speed up the process. Increase your credit card payments to cut into that debt. As you prepare to buy a home or prepare for a family, you will appreciate eliminating or decreasing this debt.

Get Serious about your Career

You may have spent your 20s moving from job to job, trying to find the right fit for you. This is fine, but as you enter your 30s you will want to settle into a career path. Make serious career goals that you will find fulfilling. Do whatever is necessary to achieve them. This will also stabilize your income, which is essential for building savings.

Buy Life Insurance

Maybe you considered life insurance before, but didn’t deem it necessary. Maybe you have never considered it before. Now you will have more family and financial responsibilities. Now is the time to give life insurance serious consideration. A life insurance policy will provide financial security for you and your family if you die. It can also help pay off debts. This is a necessary tool to help protect the people who are closest to you.

Get Serious about Savings

Now is the time to seriously begin preparing for your retirement. Hopefully you have been saving through your 20s. It is time to turn savings into investments. Talk to a financial planner to create your plan. Diversify your investments to provide a stable bedrock of financial security. Participate in your company’s 401(k). Max out the 401(k), particularly if your employer offers a match.

Draw up a Will

Creating a will ensures that your wishes are carried out in the event of your passing. Make sure you include your spouse, children, siblings, or anyone else you want as beneficiaries. Make sure to add children to your will as they are born.

By following this checklist you will have a sound financial base entering your 30s.

How are you preparing for your future? Please share in the comments.

Checklist for Life: Things to Do before You Get Married

  

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As your wedding approaches it is easy to get carried away with the emotions associated with marriage. You are also preoccupied with planning the ceremony and reception. Don’t lose sight of other important decisions to be made.

Financial concerns may not carry the same sentimental attachments of the wedding planning, but it is of vital long-term importance. You must take time to prepare for your new life as a couple. This means understanding and preparing your finances. The checklist below will help you prepare for your married life.

Discuss your Finances

Before you are married you should have an open, honest discussion about your individual finances. Let your partner know about any outstanding debts you have. Share the details of your retirement and personal savings. You should work together to come up with a budget that will work for both people. Create a plan for dealing with substantial debts.

Decide between Joint and Separate Accounts

There are advantages to each. A joint account often makes budgeting easier and keeps each person accountable for individual spending. Separate accounts may be beneficial in cases where one spouse is receiving tuition reimbursements or child support. If you use separate accounts, decide early which spouse will be responsible for which bills on regular basis.

Quote Life Insurance

There is a good chance that neither newlywed’s life is insured. Life insurance helps guarantee the financial safety of your spouse in the event of your death. You don’t want your spouse and family to be stuck paying all of your combined debt without the aid of your income. Purchasing life insurance can help ease this burden.

Get your Credit Reports

Get copies of your individual credit reports. Knowing your credit will help you plan for the future. You will be prepared to take out loans for buying a home or a new car. Both credit scores should be over 750. If one or both are not, take credit building steps. Make sure you have separate credit card accounts, which are used and paid off regularly. This will help build credit for the future.

Plan a Realistic Wedding

Your dream wedding may call for champagne fountains and a solid gold Rolls-Royce, but that might not fit your financial reality. Plan for a wedding you can afford. Don’t think of it as sacrificing your dreams. Use it as a way to focus on what is really important: the love you share with your future spouse. You may discover that it is the simple things you remember the most anyway.

Checklist for Life: Things to do before you’re 25

  

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Your early 20s may turn out to be among the best years of your life. You are still young and in good health. You are completing college and entering the workforce or graduate school. You have all the freedoms of adulthood with few or none of the responsibilities. This is a great time to discover who you really are. Take the time to explore your interests and the world around you. As you get older, financial and family responsibilities may make it difficult to enjoy this type of freedom again.

Even though this is a time of limited responsibilities, there are some decisions you should make and habits you should get into that will help make your life easier as you age.

Start Paying off Those Student Loans

While it is tempting to defer paying on your student loans as long as possible, it may not be wise. Start making payments on your school loans as soon as you are financially able. You will not want to be dealing with student loans well into your thirties when you will be in position to buy a home or start a family.

Start Saving

Ideally, you will start a retirement account sometime after college. This is not always feasible. You may find yourself making less money than you would like or pursuing a post-graduate degree, which provides no income. Still, you should start some sort of savings. Even a simple savings account is step in the right direction. Make it separate from your checking account and don’t take money out of it. You can start small, even $50 or less. Put away whatever extra money you have whenever you can. You’ll be glad you did later.

Consider Life Insurance

Most young adults have not given any thought to life insurance. While buying life insurance before 25 is not for everyone, there are some benefits. It is worth consideration. If you have sizable debt that would pass on to parents or other loved ones when you die, you should consider life insurance. Life insurance is also often less expensive and easier to attain while young and in good health.

Create and Stick to a Budget

Budgeting is a great habit to get into. It’s never too early to start. Take an inventory of your expenses and income. Are you making enough money? Are there expenses that can be cut out? Make sure to include money you would like to set aside for savings.

Now, find a reasonable budget that works for you and your lifestyle. You can even go high tech with your budgeting. There are a number of apps for mobile devices that will help you set and keep a budget.

Don’t Get Married without Life Insurance

  

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You already have something old, something new, something borrowed, and something blue. But do you have something to protect your future spouse financially if you die?

A wedding is a time to look forward to a shared future with someone you love and rely upon. It is the perfect opportunity to plan for the future and make sure that your loved one is always taken care of. It is time to shop for life insurance.

It is important to remember that life insurance is about the living. It’s about knowing the person you love the most in the world will be safe and provided for even if you pass away. It is a gift you give to your spouse and to yourself.

Why Newlyweds Need Life Insurance

A wedding symbolizes the joining of two lives. From this point forward you and your spouse are bound together. You will share your life, experiences, responsibilities, and finances. You will come to rely on the income of your spouse, and your spouse will rely on your income. Together you will take on shared debt and financial responsibilities. These can include mortgages, auto loans, utility bills, credit card debt, and the costs of raising children.

If you die, will your spouse be able to handle all of this without your additional income?

The answer for many people is no. That is why life insurance should be essential for all married couples. The death benefit from a life insurance policy will help provide for your family until they can adjust to life without you.

It is also helpful to get life insurance while you and your significant other are still young. While you are younger and healthier you may find it easier to be approved and premiums will often be lower. As you get older, you will discover that life insurance becomes more expensive and often more difficult to attain.

What Kind of Life Insurance Should Newlyweds Buy?

There is no right or wrong answer to this question.

Whole life insurance will be there for your entire life. It also features investment capabilities so that the policy gains cash value as it ages. However, it is relatively expensive. Many people also do not feel the need for life insurance as they age and become more financially stable.

Term life insurance on the other hand, will last through the agreed upon term. It is much less expensive than whole life insurance. Many prefer term life insurance because it will cover the time of greatest financial need. This could be the time it takes to pay off a mortgage or send a child through college. Also, it is common for people to use the savings from the lower term life premiums to invest independently.

No matter what kind of insurance you choose it is important to consider life insurance before walking down the aisle.

6 Ways to Protect Yourself against Life Insurance Fraud

  

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Instances of life insurance fraud have been in the news recently. For example, last month a former insurance agent was sentenced to 10 years in prison in Hawaii for stealing over $360,000 from clients.

It is understandable that consumers worry about purchasing life insurance. It is a big decisions and news like this raises the defenses of many people. Don’t let fear keep you from purchasing life insurance. You can protect yourself against life insurance fraud by following these precautions.

1. Carefully select your life insurance agent

Most instances of life insurance fraud involve dishonest agents trying to bilk money from consumers. Take the time to check an agent’s references. You can often find reviews and testimonials online.

2. Get a second opinion

Find an impartial third-party that you trust. It could be someone who has experience in the life insurance or financial industry. Someone who understands the policy you are looking for will be able to see inconsistencies and potential dangers that you may not.

3. Review your insurance statements

Make sure you are getting what you pay for. Also, you should be receiving statements directly from the insurance company not from the agent or the agent’s firm. Dishonest agents will often take pains to make sure that you only see what they want you to see.

4. Only make checks payable to the insurance company

Don’t agree to make payments to an agent or agency. There is no guarantee the money will go toward the policy and not into their pockets.

5. Obtain and review a copy of the policy

Always get everything in writing and read everything. Pay particular attention to the fine print. Make sure you are getting exactly what you agreed to. Cancel or refuse any policy that does not meet your expectations.

6. Never sign a form that has not been completely filled out

Don’t sign if you see any blank spaces. Agents may assure you that they are formalities. In reality, they are an opportunity for someone to add details that you have not agreed to after the fact.

How do you protect yourself? Let us know in the comments below.

5 Things to Do If You Are Declined for Life Insurance

  

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If you are declined for life insurance, don’t just sit at home wondering why. There are several steps you can take to move toward approval.

1. Find out why

Contact the life insurance company to request the reason you were denied. They are legally obligated to provide this information. Determining the factors that caused a denial can help you take steps necessary to improve your chances for approval if you reapply.

You may have been denied because there was a red flag in your medical exam. If this is the case, you should schedule an appointment with your personal physician to go over the results.

2. Get retested and check your medical records

Have your personal physician re-run the test you failed. It is possible that the life insurance exam uncovered a previously undetected health issue. It is also helpful to go over your medical records to make sure they are factual and match the information provided by the insurance company.

All life insurance medical test results are compiled in a database by the MIB Group. All updated information must be reported to make sure insurance companies can make an informed decision.

3. Utilize a Life Insurance Brokerage

Different companies have different standards. You can try to apply to the same company again, but for a different type of life insurance. Or, you may choose to apply with a different insurance company that may be able to offer you more competitive coverage. This is where a life insurance brokerage comes in. They can compare coverage options from multiple companies to see where you have the best chance of getting coverage.

4. Let an agent help you

Good life insurance agents understand their clients and the marketplace. They are well versed in which companies offer insurance to what types of individuals. Trusting a professional to help sort through the tangle of life insurance policies will save you untold hours of fruitless work and headaches.

5. Don’t panic

This is important. When many people are declined, they will purchase any policy they can get. Make sure you take the time to find the best life insurance policy for you. Take the extra time to carefully compare life insurance quotes. Talk to a professional to help you understand your options.

Life Insurance 101: Permanent vs. Term Life Insurance

  

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Class, please put down your pencils and turn in your papers. Stop your grousing. I warned you at the end of our last session that there might be a quiz on the reading. Do I have everyone’s paper? Good. Now let’s go over the answers.

The reading was on the differences between term and permanent life insurance. Let’s see who passed, shall we?

Term Life Insurance

The first question was to define term life insurance. Here’s one student who got it correct. It looks like it is Mr. Jenkins. Term life Insurance covers the policy holder for a specific period of time. This period of time is what is referred to as the term. The policy holder’s beneficiary only receives a death benefit if the policy holder dies within the term.

That is all correct. Term life insurance is popular because it offers lower premiums. It is temporary, but it is often purchased by people who only need coverage for a specified time. For instance, it is often bought to cover the time until children reach adulthood, or the time it takes to pay off a mortgage.

Permanent Life Insurance

The next question was to define permanent life insurance. It looks like Mr. Jenkins answered this question correctly as well. Please, don’t give Mr. Jenkins a hard time just because he bothered to do the reading.

Permanent life insurance offers lifelong protection. As long as the premiums are paid, the policy holder will not lose coverage. Permanent life insurance usually has higher premiums compared to term life insurance.

Permanent life insurance policies are also designed to accumulate a cash value over time and often include investment options depending on the type of policy selected.

Are there any questions? Yes, in the back.

Which Type of Life Insurance Is Better?

Actually, one type of life insurance is not considered “better” than another. Both permanent and term insurances have benefits and drawbacks. Which life insurance you choose, depends on your particular circumstances. When you buy life insurance, talk to an expert to help make your decision easier.

Class is dismissed for this week. Remember to prepare for next week’s class when we discuss the different types of permanent life insurance.

Life Insurance 101: What Is Life Insurance and Do You Need It?

  

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Students, please be seated. Put away all cell phones and other devices, and direct your full attention to the chalkboard. Class is now in session.

This is life insurance 101. If you take a look at your syllabus you will see that we will be covering all of the basics of life insurance over the course of the semester. For those of you who have done the assigned summer reading, much of this will be review. Those of you who have failed to keep up with your reading list – you know who you are – should pay particular attention.

What Is Life Insurance?

Life insurance in its simplest form is a way to financially protect your loved ones and dependents in the unfortunate event of your death. If you have purchased life insurance and die within the parameters of your agreement, your beneficiary or beneficiaries will receive money, called the death benefit. This money is used to pay for your final expenses and help provide for loved ones while they seek to become financially stable without you.

Did I see a hand? Mr. Jenkins, do you have a question?

That’s an excellent question? Everybody can learn a thing or two from Mr. Jenkins.

Do You Need Life Insurance?

As you can see if you turn to page 17 of your textbooks, there are many people who should purchase life insurance.

Newlyweds or people in a committed long-term relationship should purchase life insurance. Spouses often rely on each other to maintain their lifestyles. They often have a hard time making ends meet after the death of a partner. They’re often unable to keep up with rent, mortgages, utility bills, credit card debt, car loans, and other expenses. By purchasing life insurance, you are ensuring that the person closest to you will be able to continue without you.

Can anyone in class think of other people who need life insurance?

That’s right, parents. This is a big one. Children are dependent on their parents emotionally, physically, and financially. They have no income of their own. When you die, will your children be able to survive? Will they still be able to attend college? It is strongly recommended that new parents take out a life insurance policy to help protect their children.

What was that? Please, raise your hand if you have a comment. You’re single without children? Do you still need life insurance?

That depends. For single people there are still many situations where it would be beneficial to have life insurance. For instance, small business owners often have life insurance to help protect their business if they die. Also, any debt that exists at the time of your death will still have to be paid. This includes student loans and mortgages. This debt often transfers to loved ones such as parents. A life insurance policy will ensure that they are not stuck with your debt.

Also, it can be beneficial to purchase life insurance when you are younger and healthier. You will find it easier to get approved and rates are often much more favorable.

That’s the bell. Class, next week we’ll talk about permanent versus term life insurance. Be sure to do your reading. There may be a quiz.

Have you reviewed your Term Life Insurance coverage lately?

  

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3 Tips to Choosing an Online Life Insurance Brokerage

  

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Why Buying Life Insurance When You're Healthy Can Save You Money

  

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Life Insurance Coverage: Why It Should Be Part of Your Financial Plan

  

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When you imagine your future, do you picture a beautiful house, a growing family, two cars in the garage and a happy retirement?  Financial planning helps you obtain those objectives through goal setting, formulating savings strategies, and learning how to protect your growing assets and obligations. Life insurance coverage is a powerful tool to add to your financial planning arsenal.  

Most people will spend more than 40 hours a week out of the house working. The goal of this hard work and time away from loved ones is to accumulate wealth and assets and to provide satisfying lives for ourselves and our families. Part of your role as a provider is to ensure that the lifestyle you have worked so hard to build for your family is protected if something happens to you.

Should your life end without adequate life insurance coverage in place, the assets you have worked so hard to grow can be lost rapidly. Not only must your family deal with the emotional loss of you as a family member, but there are also major financial losses to be considered. Funeral costs can be thousands of dollars, in addition to medical expenses owed for your final care. With the loss of a valuable income earner, monthly financial obligations may be impossible to meet. What happens to the debt you've left behind, including your final expenses? Will the mortgage go unpaid and your family be forced out of their home? Will your spouse and children have enough food, clothing, and shelter? What about normal living expenses such as utilities and taxes? Will your children lose their other parent to working multiple jobs to provide the bare necessities? Is a college education now an impossible dream for your children?    

These are frightening possibilities to consider, but are very real possibilities if you have not planned appropriately for the future with life insurance coverage. Incorporating life insurance into your financial plan makes good sense and strengthens your financial foundation. When you are setting financial goals, it is a logical transition to discuss how much life insurance coverage is necessary to keep those dreams on track should the unthinkable happen. Having adequate coverage means that final expenses are incorporated, the mortgage would be paid in full, any debt would be completely eliminated, your children's college tuition would be a certainty, and your family would have sufficient income replacement for a reasonable period of time. These are just a few of the items you would want to consider when calculating your minimum life insurance coverage.

In addition to having enough life insurance, it is also critical that you maintain that coverage for a sufficient time period.  For example, if you have a 30-year mortgage, you may want to apply for a 30 year term.

Life insurance is one of the easiest and most critical ways for you to protect your family and the assets you worked so hard to build.  By providing the right level of life insurance coverage, your family has a solid chance to live the kind of future you imagined. For more information, please contact us or request a free quote. Efinancial makes life insurance easy and convenient.

Why So Many Are Choosing to Buy Life Insurance Through an Online Brokerage

  

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When it comes to buying life insurance, it is important to understand where to start your search. Deciding which type of policy to go with, what agent to use and what you hope your life insurance will cover in the future are all important steps in the process, and it is important to consider everything carefully from the beginning.  

Today, more than ever, technology is playing a major role in how business runs and how effectively companies are moving into the future.  The life insurance industry is no exception and this is great news for those in the market for life insurance coverage.  Many people are now choosing to begin their search for life insurance through an online brokerages and the benefits are astounding.

The ability to browse plans and options for yourself
One of the premier benefits of starting your insurance search online is the ability to browse options and quotes from the comfort of your own home. When you are ready to speak with a licensed agent, it's as easy as picking up the phone or requesting additional information online.

The freedom to take your time
One of the biggest benefits to shopping for life insurance online is the ability to take your time. Life insurance is a huge decision that will protect your family in the event of the loss of a loved one. The decision of what type of coverage is best for your individual needs is one that merits careful consideration, and since the Internet is always just a click away, it allows you to weight your options at your own pace.

Comparison counts
Online brokerages provide virtual tools for comparing quotes and options to make your online search as effortless as possible. Comparing quotes online allows you to quickly and easily compare rates from multiple carries. When comparing quotes look closely at coverage amounts, term lengths and rates.

Positive online options
Knowing you have life insurance in place is important.  Knowing that your coverage is tailored to your specific life needs and is the best option out there is priceless.  Buying insurance online has become a great way for you to:

To compare quotes from the most trusted names in the life insurance industry, request a free quote now!

Have you reviewed your Term Life Insurance coverage lately?

  

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Your life is constantly changing, evolving, and progressing. Why shouldn’t your life insurance coverage change with it then? Many make the responsible choice to seek out life insurance coverage and find term life insurance most ideally fits their needs. They purchase, keep up with their premiums, and then they entirely forget about it until the term runs out. However, there are several situations where you may want to review your term life insurance coverage to ensure it continues to meets your needs.

What life events should prompt a review of your term life insurance policy?

• Family status changes. If you’ve married, divorced, or had children, chances are your coverage needs may have changed. The simple question is, if you died today would your current insurance cover your debts, final expenses, and leave your family with money to cover daily living expenses? You may find the answer to that question leads you to feel you need less insurance or more. Remember to think long-term and consider large expenses that might come due such as college tuition, retirement, or mortgage payments. 
• Lifestyle changes. Things such as promotions, job loss, retirement, or career changes can significantly alter your lifestyle, income, and the budget you and your loved ones require to maintain that new lifestyle. It’s a good idea to evaluate the true cost of your style of living and factor that into the type and amount of your life insurance coverage. 
• Birthdays. While the last thing most of us getting older want to face is that the possibility of death is increasing, insurance companies are happy to remind us. As you become older it’s wise to review your term life policy. Also keep in mind that policy rates often increase as you age. So don't wait too long to review your coverage. 
• Positive changes to health.  If you’ve made health improvements such as significant weight loss or giving up cigarettes for at least a year, these are factors that can affect your rate after a certain amount of time. Speak with a life insurance agent to see what options may be available to you if your health or health habits have dramatically improved. 

When it comes down to it, you should review your term life insurance policy any time any significant change occurs in your life. Many life insurance experts also recommend reviewing your coverage annually. For questions about life insurance or to see what options may be available to you contact an Efinancial licensed agent today.

Building Cash Value with Whole Life Insurance

  

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Whole life insurance is one of many different types of life insurance policies available today. As with all types of life insurance policies, whole life insurance provides a death benefit to the insured's beneficiaries, providing for their living expenses, debts, education, or anything else they need. One way whole life insurance differs from many other types of policies, however, is that is builds cash value over time.

Term life insurance simply expires if the insured doesn't die before the end of the insurance term. You don't get anything back for all of those payments you made over the life of the policy. With a whole life policy, however, the cash value will grow over time.

How does it work? Every time you make a payment toward your life insurance, a portion of that payment goes toward the cash value of your account. Your cash value rises each time you make a payment, and it grows tax-deferred over time. In essence, it's a savings account built into your life insurance policy, ready for you to use when the time is right.

Building cash value

It takes time to build a solid cash value with a whole life insurance policy, so this option may not be for you if you're not looking long term. The cash value you build in an insurance policy should be considered off-limits as far as liquidity is concerned. Most life insurance policies don't start to build substantial cash values until the policies are between 12 and 15 years old.

Accessing your cash value

What good does your cash value do if it just sits there in an account? As previously mentioned, your cash value grows tax-deferred over time. Once you have enough cash in your account, you can decide to stop making payments on your whole life insurance if you wish, and your cash value will cover your premiums payments. Therefore, you can still enjoy the benefits of a life insurance policy without having to make any more payments.

You can also borrow from your cash value if you find that you need access to that money. Essentially, you're taking out a loan from your insurance policy. You pay it back at an interest rate that's usually lower than your bank would charge for a personal loan. If you choose, you don't have to pay the money back, but the loaned amount will be subtracted from your death benefit when you pass away.

In addition to letting your cash value cover your payments and taking out a loan from your policy, you can also withdraw lump sums. Withdrawing money from your accumulated cash value will reduce your death benefit, just like an unpaid loan against your policy. For example, if you have a $100,000 whole life insurance policy and you withdraw $20,000, your remaining death benefit will be $80,000. Not all policies work on a dollar-for-dollar basis like this, but many of them do. Check on the details of specific policies before you decide if you want to withdraw lump sums.

Whole life insurance has many appealing benefits, including a permanent death benefit.  Not only can the death benefit help the insured's survivors after death, but the cash value can help the insured during his or her own lifetime. When making a decision about whole life insurance, talk with an experienced insurance agent as well as an adviser who can help you to see how your insurance will fit in with your overall financial plan.

Get Lower Life Insurance Premiums with Three Industry Secrets

  

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The roots of modern life insurance can be traced to the ancient Romans, who believed that an elaborate funeral was necessary in order for the spirit of the departed to rest in peace. Because only wealthy families could afford such ceremonies, however, common citizens formed dues-paying “burial clubs”. Using the pooled contributions, these clubs were able to send members to the afterlife in an appropriate style.   

Today, providing money for burial expenses is only one of the many reasons to purchase life insurance. If you die unexpectedly, life insurance can be a source of financial support for your family. It can also fund your children’s education or protect your surviving spouse’s retirement plans.

If you’re in the market for quality life insurance, you have more choices of insurers and policy features than ever before. Here are some simple tips on how to get quality coverage in the amount you need at a price you can afford.   

One: Do Your Homework and Shop Around

To choose an appropriate policy, you’ll need to consider your goals and life circumstances. If you have a local agent, ask him or her to explain different features and recommend amounts and types of coverage. For example, you’ll learn that a “whole life” policy, which accumulates a cash value, is usually significantly costlier that a “term” policy. You can also find objective advice online through organizations such as the American Council of Life Insurers.

Life insurance is an important purchase, and life insurance premiums for identical coverage can differ significantly. Just as you would do when shopping for a new car or major household appliance, once you’ve decided on the amount and type of coverage that’s right for you, get quotes from two or more companies.

Also, many companies offer optional coverage “riders”. Examples include a waiver of  future premiums if you become disabled and a partial benefit payable during your lifetime if you develop a fatal illness or otherwise require long term medical care. Depending upon your situation, some of these add-on features may be attractive. However, remember that each one you select will increase your total premium.   

Two: Your Lifestyle Counts

The primary factors most commonly involved in determining the premium you’ll pay are

• Your age
• Your family medical history
• Your lifestyle

Do you notice anything about these factors? That’s right – the only one within your control is your lifestyle. But it can be an important one. Continuing your positive habits or changing less desirable ones can significantly reduce your life insurance premiums.

• Don’t Smoke – If You Already Do, Quit

You already know that not smoking (or quitting) improves the odds of living to a ripe old age. So do life insurers. Smokers’ life insurance premiums can be as much as ay fifty percent higher than those of non-smokers of the same age with similar family medical histories.

• Lighten Up On Both Alcohol and The Accelerator

Moderate consumption of alcoholic beverages is usually okay, but remember that the insurer will be checking your medical and driving histories. If your drinking habits have caused problems that show up in these records, you’ll need to prepare to pay a higher premium.

As far as driving habits are concerned, it’s no news that speeding tickets can make your auto insurance premiums skyrocket. However, insurers generally believe that drivers with histories of moving violations or accidents are at greater risk of premature death and should pay higher life insurance premiums than do those  with clean records.   

• Maintain A Healthy Weight

Obesity is known to contribute to diabetes, high blood pressure and other potentially life-threatening medical conditions. If you’re at or near the ideal weight for your age, gender and height, your premium probably will be lower than that of a similar person who is significantly overweight.  

• Pay Your Bills On Time

That means all your bills, not just your policy premiums. While it’s a somewhat controversial practice, many insurers will check your credit. They believe that policyholders who watch their finances are probably more careful in other areas. A spotty credit history or a weak credit score may therefore affect what you pay for life insurance.  

Three: Consider An Annual Premium Payment Option

Like most businesses, insurers love to get cash up front. If it’s within your budget to do so, pay your life insurance premiums in a single lump sum each year. In addition to saving the convenience charges or similar fees that usually go along with an installment payment plan, your may find that the premium itself is lower if you pay in full.