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Life insurance is a powerful tool that offers protection to you and your family as well as your business in this constantly changing world. However, buying a life insurance policy can be a scary procedure, but that doesn’t mean that it will be very expensive. There are multiple ways to save money on a life insurance policy.
The following are some of the money saving tips for life insurance:
Buy Your Policy From An Independent Insurance Agent
The most significant thing to consider when deciding to purchase life insurance is to purchase it from an independent insurance agent. An independent insurance agent carries insurance policies from a wide range of insurance companies. It provides you with an opportunity to compare features and costs of policies from several insurance companies and to choose the most suitable one. Insurance agents are loyal towards customers, not to the insurance providers. If an insurance policy is not suited for your needs, the insurance agent won’t compel you to purchase that policy just for the commission. The agents strive to deliver the best policies that are a good fit for your family and budget.
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Buy Several Policies Instead of One For The Same Amount Of Coverage
Most people prefer buying a large policy to cover all their insurance needs such as income replacement, mortgage benefits, and children’s higher education. To meet these needs, some insurance advisors may suggest buying a large policy of $1 million dollars with a 30-year term period. But, you can save 10-15% by purchasing two policies instead of one for the same amount of coverage.
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Opt-In For Annuity Payments Over Lump Sum Death Benefits
The death benefits are the highlight of most insurance policies. However, insurance policies with annuity payment options will be the best option and it saves up to 15% of your insurance costs. An insurance policy with an annuity payment option will also save money on your insurance premiums. For example, if you have a policy with a $ 900,000 death benefit, you can opt-in to make the payment $60,000 over 15 years instead of a $ 900,000 lump sum death benefit.
Set The Right Term For The Policy
When you go for a short-term insurance policy, you can save more than opting for a long-term policy. You have to choose a suitable term that best fits your insurance needs. When you decide the term length of your insurance policy, you have to consider some factors. If you have a mortgage to be paid off in 10 years, you shouldn’t choose a long-term policy. You should go with a short-term insurance policy otherwise, it will be a greater burden for you to pay premiums. After completing that first term policy, you will hopefully be able to buy a long-term policy afterwards. |
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Consider Joint Life Coverage
Joint life insurance is another significant way to save money on life insurance. A joint life policy premium is a bit cheaper than paying for two single life insurances. However, you have to keep in mind that the insurance company pays out only upon the death of the first partner. This means that if and when the survivor passes, the family cannot file another claim.
About Alchemy Insurance Agency
Alchemy Insurance Agency is an independent insurance agency with over three decades of experience in providing insurance services to our customers. We maintain better relationships with top level insurance providers to offer you with the right insurance at right price. Alchemy Insurance Agency serves clients across Pennsylvania, Oklahoma and Texas. Our commitment to professionalism and transparency allow us to gain the trust and confidence of our clients.