6 Tips for Finding Life Insurance that Fits One’s Budget

Life insurance can be a worthwhile investment, offering financial protection to loved ones and helping to leave a larger legacy.

However, life insurance can also be a significant commitment. Policyholders pay ongoing premiums for many years or even their lifetime in exchange for coverage. Finding the best possible rate is key to getting the most out of a life insurance policy.

This article covers six tips for applying for a life insurance policy that offers the coverage people need without breaking their budgets.

1. Know Coverage Needs

Life insurance applicants should seek a large enough death benefit to adequately provide for their loved ones without overpaying by getting too much coverage.

A good starting point is to multiply annual income by 10. For example, someone earning $70,000 per year may want a $700,000 death benefit.

The death benefit alone isn’t the only coverage consideration. Many forms of life insurance exist, leading people to ask things like “How long does this policy last?” and “What is permanent life insurance?”

There are two broad life insurance plan types, each suiting different needs:

• Term life insurance: Offers coverage for a fixed period of 10 to 30 years for reasonable premiums. Coverage can expire, necessitating a renewal or a new policy. However, these policies may offer the most coverage per dollar.
• Permanent life insurance: Offers lifelong coverage and a cash value component that can grow with each premium payment and earns tax-deferred interest. Policyholders can access it via borrowing and withdrawals when it’s large enough. These features can make permanent life insurance more expensive, suiting it to those with larger budgets.

2. Maintain a Healthy Lifestyle

Health can be a main factor that insurance agencies use to analyze an applicant’s risk. The healthier one is, the more options they may have, and the better their rates can be.

Here are some ways to maintain a healthy lifestyle:

• Eat a balanced diet
• Get regular exercise
• Sleep 7-8 hours per night
• Visit medical providers regularly
• Avoid smoking and minimize alcohol consumption

Pre-existing conditions or similar situations may pose a challenge, but a healthy lifestyle helps. Following the tips above and demonstrating vigilant management of the condition can help make the insurer more lenient.

One can do this by taking prescribed medications as their doctor instructs and demonstrating improvements in health over time when the insurer accesses medical records.

3. Consider an Independent Agent

Independent agents can help prospective policyholders understand and shop for life insurance policies. They don’t work for any insurer, allowing them to prioritize their clients’ interests regarding coverage.

Prospective policyholders usually do not have to pay the agent. Instead, the agent may receive a commission from the insurer from whom the prospective policyholder buys the policy.

4. Explore Group Term Life Insurance

Some employers offer group-term life insurance in workplace benefits packages for employees. Keep in mind that most employers limit coverage for tax reasons, and this may not be enough for some policyholders.

However, this means the policyholder can get a smaller plan outside their workplace to make up the gap. This could result in overall savings.

5. Shop For Multiple Quotes

Insurers can calculate risk differently and compete for each applicant’s business. Therefore, shopping for multiple quotes and comparing them can help find the best rates.

People can get quotes individually from insurers, but a faster way might be to use an online quote aggregation service. These ask for a few simple pieces of information, then gather quotes from several insurers. This helps save time on finding individual quotes and holds all the quotes in one place for easier comparison.

6. Find A Policy ASAP

Premiums increase with age. However, once someone gets a policy, they can lock in their premiums for the policy duration. Prospective policyholders should balance the preparation involved in getting a policy, such as shopping for multiple quotes, with the fact that premiums may rise if they wait.

Finding the Right Life Insurance

Life insurance can be a powerful way to help protect loved ones, but it can be a big financial commitment. Understanding one’s coverage needs, improving health and lifestyle, and exploring group-term life insurance are the first steps to finding affordable coverage. From there, prospective policyholders should consider working with an agent and shop for multiple quotes. The sooner one gets a policy, the more reasonable their premiums may be.

Following these tips can help people find the best rates on the coverage they need to help protect their family and accomplish other financial goals.

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.

Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.

Aflac life plans – B61000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.

Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.

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Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211

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Contact: Angie Blackmar, 706-392-2097 or [email protected]