Getting The Most For Your Money

Your life insurance premium depends on quite a few variables, some of which you can control and some of which you can't. You can't change your age or your health history, for example, but you have power over whether you smoke, carry a lot of extra weight on your body or engage in high-risk activities like scuba diving or rock climbing.

There are several areas where you have the ability to influence your policy and its premium. The underlying message is this: Know what you're entitled to. Here are a few guidelines.

Assess your needs

The purpose of life insurance is to ensure that when you die, your debts are paid, your family can continue to live in their current lifestyle, and if you have children that their education, medical care and other major expenses.

How much life insurance you need, exactly, depends on factors such as the size of the family, the age of your children, how much you owe on your home and whether other relatives are responsible for any of your relatives.

Term life insurance policies can serve as a concrete demands of your family. Say you owe $ 200,000 on your home. You can make a $ 250000 term life (with many companies, price breaks occur every quarter, one million dollars), which is 25 years or whatever the length of your mortgage. This means that your house is fully paid off, even if something happened.

Similarly, you can buy term life when your children are born, with the aim of turning them until they are 18 or until they finish college. Instead of just picking a coverage amount, sit down with your spouse and a financial adviser and calculate what you need if each other were not there. If you know exactly how much you need, you can sign up for the company and policy that all these requirements are met, and you are not vulnerable to any agents sell you more than you need.

It is true that the purchase of more coverage may mean that your payment less per unit ( "bulk purchasing" principle also applies here), but if you do not need it, it's still not the best use of your money. You can always buy more coverage later, but the premiums increase as you get older, and changes in your health can affect your insurability. Another possibility is the duration of life insurance to buy, then convert it into a whole life (which affects you, as long as you live, rather than for a set number of years) if he wins.

Buy only what you need,

Watch out for hidden costs or redundant. For example, some companies tack on fees for the monthly payment plans. Be on the lookout, so you can make informed decision - if there is a difference of 15 percent of the annual cost, you can pay your premium annually or every six months. Another option is of questionable value "is a premium waiver, the costs amount to a fair adding. This exemption, your premium payments if you become disabled. But you have probably already covered this point with the existing disability insurance.

Reduce the premium by kicking high cost habits such as smoking. It may not be easy, but it pays off - many insurance free smoking twice as much as non-smokers for the same amount of coverage.

Note, however, that honesty is always the best policy. If you understand your smoking habits, then die-smoking cause, your insurance company can legally refuse to pay your death benefit (although it still must pay your beneficiary the amount you pay in each premiums plus interest).

Lose weight if you are more than 20 pounds over recommended weight for your height, you can also save a bundle. If you fall into this category, look at the savings as an incentive, in the form, then do it for yourself and your family.

Make trade-offs

The cheapest is not necessarily the best. Your monthly premium should go to a company that has the financial strength to pay your beneficiaries if you die. Independent companies like A.M. Best and Standard & Poor's rate companies on their financial strength and its statutory health insurance commissioner's office can find out whether a particular company has a reputation for paying its debts.

Finally, if you have a health condition or circumstance that, as it seems, will have a negative effect on your premiums-shop for businesses in and around "specialization" in your particular situation. Some companies are familiar with some diseases, the risks or lifestyles than others, which can mean significant savings for you.