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RMC Insurance Services
Life
Insurance
We
all recognize the importance of life insurance. After
all, we want to make sure that our loved ones are taken
care of when we die. But before you run out and
purchase a policy, do some research ahead of time. That
way, you'll be sure to get the best possible coverage
at the right price. Here are some helpful tips to get
you started:
1. Shop around
2. Never buy more coverage than you need
3. The healthier you are, the better the rates
4. Buy sooner rather than later
5. Realize the importance of periodically
reviewing your coverage
6. You don't necessarily have to pay a commission
7. You may be paying more for monthly premium
payments
8. Don't rely solely on the life insurance offered
by your employer
9. Tell the whole truth and nothing but the truth
10. Buying more is sometimes cheaper
Shop around
When it comes to life insurance, it pays to shop around
because premiums can vary widely. And thanks to the
Internet, it's now easier than ever. Try out one of the
many insurance websites that can provide you with
instant quotes. Make sure the website you shop from
takes into consideration the factors in your medical
history that can affect the premiums.
Never buy more coverage than you need
The key to purchasing the right amount of life
insurance is to have just enough coverage to meet your
needs. If you have more life insurance than you need,
you'll be paying unnecessarily for higher premiums. On
the other hand, it's important not to have too little
coverage, resulting in you being underinsured.
The healthier you are, the better the rates
It's true – healthy people get better rates on life
insurance. You will be asked to pay a higher rate for
anything that shortens your life expectancy (e.g., if
you smoke, take medications regularly, are overweight,
have a bad driving record).
Buy sooner rather than later
If you've been putting off purchasing life insurance
because you don't want to pay the premiums, you may be
doing yourself a disservice in the long run. The
younger you are when you purchase life insurance, the
lower your premiums will be.
Realize the importance of periodically reviewing
your coverage
Any life change signals the need for a review of your
overall financial plan. When it comes to life insurance
coverage, you'll want to make sure that this major life
event (e.g., birth of a child, children are grown)
won't leave you underinsured or over insured.
You don't necessarily have to pay a commission
One of the reasons for higher premiums is that most
life insurance policies pay commissions to the
agent/broker. However, you may be able to purchase a
no-load policy through an insurer that sells no-load
policies directly to consumers.
You may be paying more for monthly premium
payments
You may not realize it, but you may be paying more for
your life insurance if you pay your premium in monthly
installments. Many insurance companies charge extra
fees if you make monthly premium payments instead of
paying the annual premium.
Don't rely solely on the life insurance offered
by your employer
Many employers offer their employees some sort of group
life insurance. But this amount of coverage is usually
not enough to adequately meet your life insurance
needs. In addition, group life insurance policies are
not portable, meaning that if you leave your job, you
can't take your life insurance coverage with you.
Tell the whole truth and nothing but the truth
If you're thinking about lying on your insurance
application, think again. If your insurance company
finds out that you lied about a health-related
condition or your lifestyle (e.g., smoking habit), they
may be able to terminate your coverage.
Buying more is sometimes cheaper
Life insurance usually costs less per thousand dollars
once you get into higher coverage amounts (e.g.,
$250,000). If the numbers work out, you may be able to
pay a lower premium while increasing your coverage.
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