Why should you buy term life insurance
There are countless reasons to buy life insurance. In this post we are going to highlight 5 core reasons to buy term life insurance. But it is also important to remember that these are not the only reasons. We can all think of buying life insurance, but remember, thinking and investigating is not actually buying. Term life insurance is not in effect until you have been accepted for a policy and it is enforce.
1 – Affordability
Many people will provide the standard excuse that life insurance is too expensive to take out. Historically when there was only the option of whole life insurance then this may well have been the case and it was deemed that something that only the affluent could afford. Now with the advent of term life insurance it has never been more affordable to obtain high levels of cover for the minimum outlay. With Term Life Insurance, the policy is only in effect for a limited period of time – the term. With this the insurance companies risk is reduced as they now the limit of their risk at the premium and cover in place. This provides cheap life insurance and is used by both young and old alike. Indeed this type of policy is often used for senior life insurance.
2 – Online Term Life Insurance
With the global increase of web sites and blogs, competition for Life Insurance has never been higher. Competition brings lower prices as different insurers fight to increase their client portfolio and try to increase their bank of insured to mitigate risk across sectors. As the consumer, you should make use of price comparison sites to see first hand how much you can save.
3- Shop around for cheap quotes
To find the new customers, the insurance companies have to compete to attract these customers. They do this by offering competitive quotes. By using sites that compare prices, you the consumer can compare up-to 10 quotes based on your zip code. Compare the different prices and be amazed at how high your savings could be, just by looking at different providers. It is important to shop around to see how much you can save. Remember any savings you make now are going to apply for each year your policy is in force.
4 – Pay Annually
To further increase the amount you can save on your premiums, enquire about paying your policy annually. By doing this the insurance companies tend to offer a discounted rate as they receive the premium up front for the year ahead, plus they save on the monthly processing. Again these savings are available each year you have the policy. Just make sure that you have the money available each year to pay the annual premium.
5 – Protect your family
It is important not to forget the primary reason for taking out life insurance, to protect your family and loved ones. You may wish to provide for your loved ones in the event of your death, to pay for your funeral expenses or for your grandchildren’s education. What ever the reason, you cannot achieve it if you don’t actually take out a policy. Finally, always remember that life goes on for those that you leave behind, They have bills to pay, outstanding loans or mortgages to settle and those end of life expenses to cover.
There is never a good time to think about this, but acting upon it is the one of the best decisions you can make.