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What You Can do to Get the Cheapest Life Insurance

Life Insurance

Finding the cheapest life insurance is a goal for most people. Life insurance, along with auto insurance, is among the most expensive items in the average monthly personal budget. However, there are steps that people can take to make sure they end up with the cheapest life insurance.

  • Improve your health. Virtually every insurance company will ask questions about your health and medical history and require a physical exam. If you are overweight, losing some weight can put you into a better insurance rating class and save plenty of money. Likewise, insurance companies offer lower rates for non-smokers, so you may want to consider quitting smoking before buying insurance.
  • Determine your insurance needs. If you know your insurance goals, then you are less likely to buy more insurance than you need. Do you want to help family members pay the taxes on your estate or simply leave money for future generations? Or perhaps your goal is to make sure there is money available to pay the mortgage if you die unexpectedly. These different goals point to different death benefits and argue for term or permanent life insurance.
  • Decide on a type of insurance. Now, take your insurance goals and translate them into a policy that comes closest to just meeting those goals. If you want to make sure a mortgage will be paid off, then you need insurance for the 30 years of the mortgage agreement and don't need any more insurance than the mortgage amount. But if the transfer of wealth to your family is the goal, then you would consider a much higher death benefit.
  • Get quotes from many companies. Now that you have narrowed your search for the cheapest life insurance policy, it's important to get quotes on the type of policy you have chosen from a number of different companies. One quote tells you nothing about whether that policy offers a competitive price. Once you have 5 or more quotes, then the cheapest quote is much more significant. Take advantage of online quotes offered by virtually every insurance company, as well as the companies that take your information and present it to a number of companies for a number of quotes.
  • Check on credentials of companies. An important question for any policyholder is whether the insurance company will be around when it time to pay off on a policy. There are a number of companies that rate the financial health of insurance companies, and that information can easily separate companies with nearly identical insurance quotes. Check with companies like Moody's Investor Service, Standard and Poor's and A.M. Best for their ratings to make sure the cheapest life insurance company you've found is also one of the safest and strongest.

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