Tags: best | deals | on | life | insurance | best | deal

5 Ways to Get the Best Deal on Life Insurance

Friday, 18 Feb 2011 10:07 AM

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
Life insurance benefits can be invaluable especially in the event of the death of the family breadwinner. Life is uncertain and unpredictable, which is why everyone should have life insurance in order to support loved ones in case of death.

Several life insurance companies offer a variety of life insurance policies at varied premiums, different benefits patterns, and for different term periods. Understanding which type of life insurance is best and getting the best deals on life insurance can be a challenge.

Here are five ways to get the best deals on life insurance.

1. Determine your needs
Determine the policy proceeds that you need and the time period after which you need the proceeds. The insurance amount should ideally be ten to twelve times your annual income. Insuring for too little would not suffice the need and insuring for a very high amount will exponentially increase the premium.

2. Determine your liability in case of death
Liability can be determined by taking into account the mortgage payments, credit card bills, car payments, or other outstanding loans, children's annual education cost, how much money would your family need in case of your death, and other sources of income that can pay for some or all of your liabilities. This ensures you get a good deal on life insurance policy.

3. Do not obtain insurance for investment
Keep investment and insurance separate. Although many companies offer life insurance policies with additional investment objective and benefits, the benefits are far less compared to instruments meant for investment alone. Combining investment motive with insurance will increase your premium and the returns are not proportional to the high premium. In this way you can negotiate a best deal on life insurance.

4. Get insurance while healthy; regular source of income gets you the best deals on life insurance
When your medical exam reports show you are in good health, the insurance companies offer a lower premium as their risk is considerably reduced. Even if you have a medical condition that you are under treated for, tell the truth, do not lie about it. Although the premium may increase slightly due to your medical condition, this ensures coverage. If you lie about it and the condition turns out to be a cause of death, the companies may investigate and chances are that your family will lose the insurance proceeds.

5. Compare insurance quotes on the internet or among insurance agents
Insurance companies have their own methods of assessing the risk and cost of a policy. Policy premiums differ from one company to another. There may be some hidden terms that you need to clarify. Comparing insurance quotes ensures that you get the best deal on your life insurance or a good deal on online life insurance.

© Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink

PLEASE NOTE: All information presented on Newsmax.com is for informational purposes only. It is not specific medical advice for any individual. All answers to reader questions are provided for informational purposes only. All information presented on our websites should not be construed as medical consultation or instruction. You should take no action solely on the basis of this publication’s contents. Readers are advised to consult a health professional about any issue regarding their health and well-being. While the information found on our websites is believed to be sensible and accurate based on the author’s best judgment, readers who fail to seek counsel from appropriate health professionals assume risk of any potential ill effects. The opinions expressed in Newsmaxhealth.com and Newsmax.com do not necessarily reflect those of Newsmax Media. Please note that this advice is generic and not specific to any individual. You should consult with your doctor before undertaking any medical or nutritional course of action.

Keeping you up to speed on Lifestyle, health, and money-saving tips
 
 
Get me on Fast Features
Keeping you up to speed on Lifestyle, health, and money-saving tips
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved