How to Get Cheaper Universal Life Insurance
Reader’s Question:
I currently own a 2-year old life insurance policy but I’m not satisfied with the premiums I’m paying. Can I do something to get cheaper life insurance rates?
Baron
Lafayette, IN
Yes, the good news is that there are still some effective ways to get savings on your life insurance coverage. Here are a few tips that could prove quite useful to you:
1. Make Sure You Have the Right Policy
Paying for the wrong kind of policy is an utter waste of money, but you’ll be surprised at how often this happens. If you just need coverage for a certain period of time, such as while raising a family or paying your mortgage, then go with a term life insurance plan. Want to accumulate substantial amount of money and have permanent coverage? Then a whole life insurance plan is recommended.
2. Take Advantage of “Price Breaks”
With most life insurers today, choosing a higher coverage amount (a.k.a. death benefit or face value) can actually give you lower rates. So if choosing between a $350,000 policy and a $450,000, going with the latter can actually save you money.
3. Live a Healthier Lifestyle
Taking care of your health and quitting smoking can do real wonders in keeping your rates affordable. There is no better time to start this than now.
4. Go with Annual Payment Plans
If your life insurer offers this, consider paying your coverage a year in advance. This entitles you to get discounts or lowered premiums.
5. Look for Discounts
Discounts abound, and you want to make sure to ask your insurer about those you might be eligible for. This is an almost effortless to get savings out of your life insurance bills.
6. It Wouldn’t Hurt to Shop Around
There are hundreds of life insurance companies out there and it would be a good idea to run a free quote check from insurance comparison portals (like this website) to know what is being offered. There are times when the only way to get cheaper life insurance is to switch carriers.
Universal Life Insurance Quotes Online
Reader’s Question:
I’ve heard of universal life insurance but am not sure what it is. It was just mentioned to me in passing the other night. I was intrigued since I only knew whole life insurance. What is universal life insurance and is it available in Fresno California ?
Landon
Fresno, CA
I am so glad Landon, that your interest was tickled enough for you to ask me this question. Who knows Landon, it may turn out to be one of the best information you’ll appreciate over time.
Universal life insurance is quite new, so you are correct in saying that there was only whole life insurance before. But universal life insurance still follow the same guiding principles of life insurance. You still get to deposit a certain amount of money, and your named beneficiary will get the death benefits after your demise.
Another similarity that universal life insurance has to whole life insurance is that it generates tax-deferred cash value but at the same time, this is where they have their distinction. Cash value and dividends made from universal life insurance are unpredictable but can be pleasantly so. Universal life cash value and dividends vary over time, and can be very high or low, depending on the performance of the stock the funds are invested on.
If you feel this is your cup of tea and if it appeals to your sense of adventure, than by all means start searching for your universal life insurance by entering your zip code on the space provided at the top of this page.
After answering the questions, you will get free quotes from universal life insurance companies and you can start evaluating them. I would also recommend visiting some insurance offices just so you can ask all the questions that you may have on your mind.
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