If you have someone depending upon your income, it is very important that you have life insurance to protect your loved ones financially in the event of your untimely death. Of course, with so many expenses, it is also important to make sure that you are not paying more for life insurance than you need to. To get the most for your money when it comes to buying life insurance, here are five tips for getting competitive quotes for life insurance.
1) Give up unhealthy habits
Your prices for life insurance are based, in large part, on the risk of you dying soon. If you engage in activities or hobbies that are more likely to hasten your health, your life insurance is going to be much more expensive. This means that if you are smoking or spend your weekends skydiving, you’ll be paying a lot more for life insurance.
2) Shop around and seek quotes from your insurer or an independent insurance agent
Almost everyone has a family member or a friend-of-a-friend that sells life insurance. While you might think that it’s a good idea to just go to this person for your insurance quotes, you could be limiting yourself or getting a product that is far more expensive than you ought to be getting. Insurance agents work on commission and mixing business with family relationships or friendships sets up a conflict of interest that is a recipe for disaster. Instead, find an independent insurance agent who can get you quotes from several different companies, or reach out on your own and get quotes directly from several life insurers.
3) Understand what you are buying
There are very different prices on whole life versus term life insurance and often term life insurance is the better choice for most people since whole life has an investment component that you may not need and that may not provide the best return for your money. Be sure to understand any life insurance product you are buying so you will get a policy that actually makes sense for you.
4) Compare apples-to-apples
When comparing insurance quotes among different companies, be sure to make sure that the policies you are comparing are substantially similar. This means finding out not only whether you are comparing term or whole life policies, but also finding out what the death benefit is and what the limitations are for each policy.
5) Re-evaluate regularly
As your health and insurance needs change, don’t be afraid to get new insurance quotes from different insurers.
Be following these five steps, you can get the best deal on life insurance and rest assured you have the protection you need without wasting money that could be put to use for other goals.
This article was first published on http://moneyprime.com.