A life insurance is an often a discarded topic but a very important part of life especially if you want to retire with financial stability. With a life insurance, you should be able to support yourself after retirement and would have additional support for the extended members of your family.

But not all life insurance policies are the same. You should discern hard and well before agreeing to the offer by an insurance sales agent. Although you should be able to transfer to different life insurance companies, the time, effort and resources you spent on a wrong life insurance is just too much.

  1. Start as soon as possible – The earlier, the better. The only way to save on life insurance is to start at a very young age. Starting life insurance only when you’re 45 years old is still possible but your contributions will be a lot higher compared to an insurance that started at an earlier age. 
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  2. Compared online offers – There are a good number of offers online and offline. But the best way to ensure to get the best rate possible is to go online and compare offers. Don’t stop at two companies – compare at least four or even five companies before deciding which one has the best offer.
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  3. Avoid vices – Smoking is the number one reason your premium could increase. It’s just logical since placing your life at risk could increase company expenses. Drinking is tolerable but just make sure that your drinking will not have any dangerous health implications.
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  4. Consider your company’s life insurance as a short term alternative – If you are working, there might be a chance that you will not last long there. The life insurance provided by the company should be good for you but not necessarily good after you leave the company. 
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  5. Know how you can get paid – Before you even sign up, know how you can avail of their services once you have completed your payments. It might take time for the insurance agent to explain this process but it is worth it. This process may not be practiced for decades yet but you don’t know when you need it. 
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  6. Know your needed coverage – Do not sign up for anything unless you know what you want to get covered. Consider covering your relatives, better half and how much you need once you retire. 
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  7. Term instead of whole life – Term life insurance is the simplest and the most effective life insurance plan. Whole life insurance plan will use your money to an actual investment which means it could go down or go up. Term life is like a savings account but with a better interest rate. 
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  8. Company reputation – Although there are many insurance companies that are declaring bankruptcy, there are still a good number of insurance companies that could withstood the challenges of recession. Research a little bit on their history not only in their website but also from other sites or you could ask your friends on what they think about the insurance provider.
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  9. Read the terms and conditions – This should never be ignored. The loophole of life insurance which causes frustration is written on the terms and conditions. Do not sign anything before readying and understanding everything. Your insurance agent should be ready to answer any question. 
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  10. Prepare for a medical exam – A medical exam is a requirement for approval in life insurance. Prepare for that date by eating healthy at least a week or two before the examination. Constant exercise while avoiding alcoholic drinks and nicotine will also help. A healthy body will not only gain fast approval but also a lower payment.