Life Insurance Tips

Life Insurance Basics

There are two main types of life insurance: term life insurance and whole life insurance. Whole life insurance pays out an agreed sum when you die and is generally more expensive. The main type of life insurance is term life, which provides a cash lump sum in the event of your death. Term insurance usually requires you to undergo a medical examination and it is renewed each year with your insurer.

The cost of your insurance will depend on several factors, such as the amount of cover you want and the length of the term. The premiums are also determined by other factors such as your life expectancy, your habits, your gender and your occupation etc.

Life Insurance Tips

Life insurance is a long-term product. It is important to consider your needs carefully and to shop around for cover that meets your needs and gives you long-term value for money.The following are tips on how to cut your life insurance expense.

Tip 1: If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.

Tip2:  If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs.

Tip3:  Check the National Association of Insurance Commissioners  or your local library for information on the financial soundness of insurance companies.