Bills, unexpected car repairs, saving for college and retirement - some months it may seem that there's no way to stretch your budget to accommodate one more expense. For this reason, you may feel that the additional cost of a life insurance policy is out of the question. After all, life insurance can be very expensive, right?
The truth is, how much life insurance is going to cost you depends on many different factors, such as your age and health. It also depends on the type of policy you buy and the amount of the death benefit that you select. Unfortunately, too many people keep putting off buying life insurance because they overestimate the cost of a policy.
With September being Life Insurance Awareness Month, we want you to better understand some of the cost saving options for getting the coverage you need at an affordable life insurance.
Many life insurance policies contain additional features that will allow you to customize your coverage. Commonly referred to as policy riders and special endorsements, these features can be used to enhance the policy or to meet your specific needs. Some life insurance riders can even make getting future coverage more affordable.
The guaranteed insurability rider allows you to buy additional life insurance at a later date. For example, after calculating your life insurance needs, you may find that you need more coverage than you can afford at the present time. This rider allows you to purchase additional life insurance in the future (with no medical exam) at specified dates, or for certain life events such as marriage or the birth or adoption of a child. So as your life and budget change, you'll have a guarantee of being able to increase your coverage.
Another rider that can make getting more life insurance at an affordable rate is the term insurance rider. Added onto a permanent life insurance policy, a term rider provides you with an additional fixed amount of term insurance above your current policy's limits. It can be a good option if you have a temporary need for more coverage.
And if you're a parent looking to buy a life insurance policy on your children, a children's term rider allows you to add term life insurance coverage on all your children - natural, adopted, and stepchildren. Generally, to add this rider, you'll pay only a single premium regardless of how many children you have, making this an affordable way to extend the benefits of your policy to your kids.
A first-to-die policy is designed to cover the lives of two people at the same time. When one individual dies, the surviving person receives the death benefit of the policy. That means that you're paying premiums for only one, not two, policies, making this an affordable option for families on a tight budget. The cost savings for this type of policy can be substantial.
Term life insurance is initially less expensive compared to permanent life insurance, although the cost may increase at renewal. It basically allows you to buy a lot of coverage for a specific time period that you select. Because you can choose your policy's term (generally anywhere from 5, 10, 20, and even 30 years), you can select the policy that best fits your budget - especially if you need coverage for only a certain time period.
In addition to these policy options, there are some things that you can do to help control the price you pay for life insurance by:
At Protective Life, we don't want you putting off getting the coverage you need because of price. We work with you, helping you to customize a policy that's right for you and your budget.
Protective refers to Protective Life Insurance Company, founded in 1907, and its affiliated companies, including Protective Life and Annuity Insurance Company.
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Life insurance and annuity products are issued by Protective Life Insurance Company, Omaha, NE, in all states except New York, where products are issued by Protective Life and Annuity Insurance Company, Birmingham, AL. Protective Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Variable products are distributed by affiliated broker-dealer Investment Distributors, Inc., Birmingham, AL.
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