Life insurance is certainly one of the most important insurance you can ever purchase. Basically, it ensures your family is duly compensated financially, depending on your contract in your demise. However, life insurance has its intricacies and without the right information, you can end up spending way more than you could have. Therefore, in this article, we have put together 5 ways to get the cheapest life insurance for you.
Is life insurance expensive?
One of the major fallacies that fly around is the rumours that life insurance is very expensive and only for the rich. However, on the contrary, it isn’t, and most people that say that only do so because they don’t have a good grasp of its cost. Firstly, if you think this way, you should know that life insurance is very affordable, even to the poor. You can limit how much you spend on life insurance to the bare minimum if you take the right steps.
What are the 5 ways to get the cheapest life insurance?
Here are the key elements that are necessary for getting the cheapest life insurance for you:
Buy a term life insurance policy
You are faced with two options when it comes to purchasing life insurance. Basically, you can either opt for term life insurance or permanent life insurance. The difference is that term life insurance provides coverage for a certain duration, while permanent life insurance simply covers your whole life. Although permanent looks enticing, term life insurance is a better option as it allows you to tailor the coverage to when you need it the most. Therefore, you can purchase coverage for the term of your mortgage or till when your kids leave school and then switch to permanent insurance later on.
Purchase it as early as you can
Your age and health condition at the time of purchasing the insurance are two key factors taken into consideration in your premium. Therefore, the younger and healthier you are, the lesser you’d pay. This stands to reason that purchasing life insurance as soon as you can is certainly cheaper. Also, it allows you to lock in the cheap policy for the whole length of your contract.
Employ the laddering strategy to get more coverage for less
When it comes to life insurance, the larger the coverage, the higher your premium. This structure is good news, as it allows you to navigate the unnecessary expenses that may come with the policy. Basically, you can employ the laddering strategy that recommends you purchase smaller policies that expire ad varying times, rather than a single large policy that covers all. This way, you can tailor your coverage to only what you’d need, and also pay a lesser premium along the way. For example, instead of purchasing a 40-year term policy with N6 million benefit, rather go for a combination of 15-year, 25-year, 10-year, policies with N2 million in benefits each.
Stay away from unimportant riders
Riders are the extra features that you can opt for after purchasing a life insurance policy. For example, you can opt for a life insurance raider that allows you to waive off premium payments if you become disabled, or cover your children under certain conditions. However, they come at an extra cost and you should avoid them as much as you can.
Stay away from simplified issue life insurance
For typical life insurance, your insurer normally requires a medical test and full assessment before a policy, however, simplified insurance skips all of that. More so, although this may seem ideal and a much easier route, a simplified policy can cost twice as much especially if you’re healthy. Also, the policy premium costs more because the insurer takes more risk because they don’t know your health condition.
Purchasing life insurance today can take as little as a few minutes through online forms and you’re done. However, take the harder route by comparing policies, going through the little coverage details and don’t settle for less. You can’t go wrong after getting several quotes from different insurers.