Life insurance is something that most people feel they should probably have, but far fewer people get it than they should. That’s largely because most people consider life insurance to be very expensive.
If you’ve got a steep quote that puts you off life insurance in general, don’t be dismayed (it happens to a lot of people), but be comforted by the fact that you can slash life insurance costs by thinking about 3 questions prior to finding the quote.
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When Should You Get It?
This is quite an important question and the answer isn’t too clear cut. As a rule, the earlier in life that you apply for a life insurance policy, the less expensive the premiums you have to pay will be. The lowest age you will be able to get life insurance is 18, but if you take out a policy before you need to, it might not be worth it in the long run. The reasons to take out life insurance are in the realm of taking care of your dependents, so only take it out if you need it. Many people choose to get it when they get a mortgage, as it would allow their loved ones to escape having to pay for it if the worst happens.
What Cover Should You Get?
Most life insurance companies allow you to apply for cover under a joint policy. These are cheaper than two policies and can save you money in that respect. However, the trade-off is that they only pay out after the first person dies. Some people find the small cost difference not worth this, but it depends on the situation that you are in. A joint policy is good if you’re getting life insurance for a specific reason, like the situation mentioned earlier about covering the mortgage if one of you dies. You should choose how much cover you get based on two considerations – your debts and your children (or other dependents that may need to cover college costs etc.). You should choose a policy that at least covers the debt from any borrowing you have (including a mortgage) in the event of your death. Once you have the amount you want for your cover, you should put it in a comparison site and scan the best life insurance companies for the cheapest price.
For What Length of Time Do You Need It?
When you know the amount of cover you need and have ran it through a comparison site, you’ll likely have found that you can have different prices based on different lengths of time. Have a think about your needs – if you’re doing it based on the mortgage then you could match the duration of your repayment, if you’re doing it to get your children through college or more then you can make it last until they reach a certain age.
Life insurance is a tough thing to wrap your head around – it’s horrible to think about but protecting your family is probably pretty high on your priorities. It’s nice to whittle the cost down so that you can at least sleep easy about making your life insurance payments.