How To Get The Most Affordable Life Cover For Your Specific Needs

How To Get The Most Affordable Life Cover For Your Specific Needs

Insurance Buying Tips #1: Shop smart

When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.

Insurance Buying Tips #2: Look for discounts

Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.

Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

There are two main types of 'standard' life insurance policies and then there is 'needs-met' life insurance cover. Depending on your unique circumstances, you will be able to choose which one is best suited to your needs and affordability.

Term life insurance

• Term cover is taken out for a specified period or term, depending on the length of time you want to be covered. This may be based on the time you expect your family to be financially dependent on you or, for instance, the term of your bond.

Whole insurance

• Whole life insurance pays out a fixed, guaranteed amount when you pass away, without a specified term. A percentage of your premium is invested and its growth helps keep the insurance premiums low. Whole insurance is often part of inheritance tax planning.

Needs-met insurance

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young

Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.

Insurance Buying Tips #5: Talk to an independent agent

An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.

Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.

• Needs-met life cover is a new type of life insurance that meets the individual needs of the policy holder. It contains elements of whole life as well as term life insurance but needs-met cover can be tailor-made to suit your requirements. This type of cover follows your needs as they change throughout your life, giving you the most flexible and most affordable cover.

How to find the cheapest insurance policy

There are several factors that determine the cost of your lifetime insurance cover such as age, life circumstances, your occupation as well as the state of your health. The healthier and the younger you are (in other words, the less risk you are to the insurer), the greater your chances of finding the most affordable premiums. When taking out life cover, you will be subjected to some medical tests; it will become critical to stop smoking and follow a healthy diet. Needs-met life cover, when compared to the whole life and term life options, usually works out to be the most affordable as it is not a 'one-size-fits-all' policy, allowing you to save in various ways. Before you decide on any type of cover, however, make sure that you do proper research to compare packages and premiums.

In closing

There are various factors to take into consideration when deciding on a life insurance policy. The best choice would be a policy that is affordable and suits the needs of you and your dependents. Needs-met cover packages will offer a good starting point from which to begin your comparisons.

Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.

Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.

Insurance Buying Tips #9: Review your insurance needs on a yearly basis

As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.

Original article and pictures take insurance-buying-tips.com site