Cheap Term Insurance
Tips to Help You find the a policy
Term insurance is the best way to make sure that your family is taken care of after you no longer can take care of them. Additionally, term insurance is a means to help pay for some major expenses, such as paying off a house or sending a child to college. If you are planning to buy term insurance, there are some basic things to keep in mind to get the best bargain for your money.
The first thing to understand about term insurance is that the age at which you buy your policy influences the cost of your premiums. Your payments will be far lower if you buy term insurance at 21 than if you buy at 50. Since you know you need it, purchasing insurance at the earliest possible time is the smartest decision you can make. The sooner you buy, the better.
You should look at your current yearly income and buy about 10 times that amount of term insurance. So, if you make $50,000 a year, buy at least $500,000. If you have more than one child to educate, you may want to increase this amount.
Timing Is All
Consider at what age you plan to retire and subtract your age at the time of purchase to decide the number of years of term insurance you should buy. For instance, a 40 year old who plans to retire at 60 should purchase a 20 year term insurance policy.
Stick with the Basics
Some term insurance policies come with various riders–for accidental death, for instance. This usually means that the policy is more expensive. Your best bet is to stick to the basics and buy the most insurance for the least money. You can buy the riders separately whenever you wish.
Honesty Is the Best Policy
When you fill out a form asking for information about you, try to answer as candidly as possible. While you might think a little stretch of the truth might lower your premium, it is always best to tell the insurance company everything about your situation.
Reassess Your Situation From Time to Time
Life brings changes–a marriage, another child, a different salary–and these changes require that you reassess your insurance needs. Make sure to review your insurance needs and see if you should make some changes.