To save money on life insurance requires thinking about the big picture. Take a peek at the movie of your life as a sum of years with those towards the end as the bottom line. What are the issues that are likely to take place in your movie and how many years will key issues be your responsibility?
Picture a happy ending in your mind’s eye and consider that a combination of insurance options will provide a successful solution to the insurance needs for you and your family.
Also, understand that the purchase you are making is one that is all about value. It’s not so much what you pay but what you will get in return for the minimum outlay of dollars for the premium. That return will be different in the middle of the movie than at the end.
For the busy middle years, ask about term insurance. It gives a bigger policy for a smaller premium. Term insurance means time you are actually renting insurance protection for a specific period of time. While you will not receive the cash value that whole life insurance offers, it provides affordable protection for the prime years of your life while raising a family and pursuing a career.
The caution with term insurance is that at the end of the term you will need a new policy with your current age and health condition, which will mean a higher premium. Nevertheless, term insurance has both great value and less expensive premiums.
Save money on life insurance by buying it early in life. This locks in the premium when you are in the best of health and affords a long-standing relationship with the insurance company.
To save the most money and gain the most value, purchase a combination of both types of policies. Choose a whole life insurance policy while you are young with a term rider and your later years in mind.
The whole life policy will provide for the senior years when your immediate family needs are less. You get adequate protection from it during your primary productive earning years until the children reach the age of 18 or leave home to live on their own while the term policy gives extra protection. Then, when the term policy “ends” you have a reduced premium expense.
Good health is a given for better premiums, as well as age. Women are statistically known to live longer than men and, with today’s pursuit of lifelong careers, they need an equal-sized policy.
It’s a bit of a mind twister to have to think so far into the future. Many of us are not that good at it, but gain peace of mind and money to spare by choosing wisely for this most important movie of your life.