| Life insurance, specifically Term Life, is arguably one of | | | | many people can actually pay less money for more |
| the best values in the entire financial services arena. | | | | coverage. Check how much or little your prices |
| Where else can you go and get hundreds of | | | | increase when you increase coverage to |
| thousands of pounds in protection for literally pennies | | | | £250,000, £500,000, or £1,000,000. |
| per day? Rates for Term Life insurance remain at | | | | Buy the right amount of coverage. Many agents may |
| all-time lows, and now is the time to lock in the best | | | | try to sell you more coverage than you need. The |
| prices. Here are some ways to help you save money | | | | purpose of life insurance is to "indemnify" (replace |
| when purchasing life insurance. | | | | financial loss), and what most people should be looking |
| Buy when you're young. Although your financial needs | | | | for is income replacement for their beneficiaries. |
| may be lower at a younger age, the rates are also | | | | Independent financial planners recommend the |
| substantially cheaper when you're young. Remember, | | | | following rule of thumb: purchase an amount of |
| the goal is to cover your primary assets (like your | | | | coverage equal to 6-10 times your annual gross |
| salary and house) so that if something were to happen | | | | income. |
| to you, your beneficiaries would be able to persevere | | | | The right hobby with the wrong company could cost |
| financially. The best advice is to lock in as much | | | | you. People who participate in high-risk sports or |
| protection at a young age while your health and prices | | | | activities (such as hang-gliding, skydiving, mountain |
| are still good. | | | | climbing, scuba diving, and racing), or even those who |
| Your "half" birthday could be costly. While some | | | | like to have an occasional cigar could very well pay |
| companies raise their prices based on your actual age, | | | | more money if they don't pick the right company. |
| most companies increase the price of their policies six | | | | Every company looks at risk factors differently and |
| months before your birthday. It's a term called "Age | | | | some are more liberal in certain areas than others. |
| Nearest" in the industry, and that half-year price | | | | Make sure you work with an insurance company that |
| increase could really add up over a 20-year term | | | | has properly matched your personal profile with their |
| policy. | | | | underwriting criteria. |
| Buy before any major health issues arise. Healthy | | | | Work policies aren't always the best deal. . Work |
| people have the best mortality risks and thus are | | | | policies are often based on a composite profile of the |
| much cheaper for companies to insure. This translates | | | | employees you work with, many of whom may be |
| into lower rates for the "Super Preferred" customer | | | | less healthy than you, or have other underwriting |
| than someone with higher risk factors such as a heart | | | | factors that might drive up rates. |
| condition, cancer or diabetes. Conversely, if you were | | | | These type of policies also expire if/when you leave |
| unhealthy when you acquired your policy, and your | | | | the company. Inexpensive term life insurance polices |
| health has now improved, it might be time to shop for | | | | that cover your dependents until they can live |
| a new policy, as your rates are likely to be lower. | | | | comfortably on their own are often a better |
| Select the right length of coverage. Everyone has | | | | alternative. |
| different needs, and not one size fits all when it comes | | | | Check out your payment options. Many life insurance |
| to term life insurance. While it may make sense for | | | | companies offer discounts to consumers who pay |
| people in their 30s and 40s to secure a 20-year term | | | | their premiums annually. |
| length, a 10-year term might be more appropriate for | | | | Review your policy often. Do a review of your life |
| someone nearing retirement. | | | | insurance policy a minimum of every three years, if not |
| People who are trying to quit smoking, for example, | | | | more often. Rates may be lower, and your |
| might be best suited purchasing a shorter term (and | | | | circumstances may have changed, necessitating more |
| then replacing it with a longer term policy when they | | | | or less protection. If you are replacing a policy, make |
| qualify for non-tobacco prices). Lastly, individuals who | | | | sure you allow enough time to get your new policy in |
| have 30-year mortgages might want to consider a | | | | place so coverages won't overlap or lapse. |
| 30-year term to ensure that the house is protected | | | | Don't overspend on protection. Term life insurance is |
| throughout the period of the loan. | | | | the most affordable and cost-effective pure protection |
| Check for price breaks. Companies often offer "price | | | | available, and it is typically much less expensive than a |
| breaks" at certain coverage amounts (i.e. | | | | comparable whole life policy. The old axiom still rings |
| £250,000 vs. £225,000). The truth is that | | | | true: "Buy Term and invest the difference. |