Buying life insurance can be viewed as a noble act since the person buying it will never directly benefit from it. But whether you consider the purchase of a life insurance policy a shining example of goodness and selflessness or not, the fact remains that it still makes good sense to compare low cost life insurance policies in order to get the best policy at the lowest price.
Fortunately there are a few simple things you can do which will help to keep the cost of your life insurance policy low, but before we look at those it would be a good idea to quickly review the two primary types of life insurance so you can better decide which one is right for you.
Before you can buy a life insurance policy you’ll be asked to choose between a whole life policy or a term policy.
On the surface a term policy might look like the better choice because the initial monthly premium on it will be lower that the premium of a same-size whole life policy. But initial cost isn’t everything.
A term life policy expires every few years. And each time it does you’ll need to buy a new policy if you want to continue being covered by life insurance. The catch is, each time you need to renew a term policy, the price for your monthly premium goes higher and higher. And the price will be its highest when you’re old and may not have the resources to continue paying for it.
A whole life policy is initially more expensive to purchase, but since a whole life policy is good for your whole life, the premium you start out paying is the exact same premium that you will continue paying for your whole life.
And unlike a term policy, a whole life policy actually builds a cash value over time and, if you choose, you can borrow against this built-up value at very little cost to you.
But whether you settle upon whole life or term life there are still a few simple things you can do to help keep your monthly premium cost under control.
One simple thing you can do is to keep your credit rating good. Many people are unaware of the fact that your credit rating affects how much you pay for your life insurance.
Don’t smoke. If you do smoke, quit – and mean it. You can’t tell your insurance company that you do not smoke and then die of smoking-related causes. If you do your policy may not be honored, or at least not fully honored.
In part your premium will be based on your Body Mass Index, or BMI. From a practical standpoint this is a measure of your weight. The more overweight you are the more you’ll pay for your life insurance. Losing even a little weight could drop you down into a lower BMI rating and that could save you money month after month, year after year.
Don’t routinely participate in dangerous or extreme sports – and don’t lie about it because if you die during an extreme sporting event the truth will come out and your policy will not provide your loved ones with the cash you hoped it would. Driving a sports car or having a dangerous occupation will also increase the cost of your life insurance.
Finally, get online and find several of the websites which allow you to make head-to-head comparisons between life insurance policies and prices. Don’t think, though, that you only have to fill out the form on one site, because no site compares all the insurance companies writing life policies in Arkansas.
You will need to take the time to fill out the form on at least 3 different websites before you can feel confident that you have compared and found the lowest cost life insurance available in Arkansas.
