Life insurance should be considered a necessity if you have a family, or intend to have a family, or have parents who may dependent on you as they age. A life insurance policy means that your dependents will be taken care of financially should something happen to your health or you die prematurely.
No-one likes to think about death or disabling injuries, but accidents happen and that is why you need life insurance to plan for these unfortunate events. You hope that you will never need it and you may think that you could save the money you would spend on premiums instead. No term investment will give you the short term return that you could need to use if a life event happens especially shortly after taking out a life insurance policy. Be aware of any exclusions, as you may find that you are not covered for any incidents that occur within 12 months of the policy commencing for instance.
Once you have decided that a life insurance policy is something you want to invest in for the future financial stability of your family then you need to do a little research to find the right policy for you. There are hundreds of policies and companies to search through to find one that meets your needs and fits comfortably within your budget. A comparison website can offer you the best quotes from a variety of providers by simply asking you to complete a questionnaire (series of questions).
Tips for Saving Money on Life Insurance
– focus on financially sound companies
– shop around to get premium quotes
– consider group insurance (employer sponsored programs)
– qualify for a cheaper rate by being in a healthy class
– check for discounts
– avoid fractional premiums (pay more to pay monthly rate rather than annually)
– look for renewal guarantees
If you can get a recommendation from family or friends for a company with good policies, a stable history and good customer service. Do not accept the first quote you get, shop around and compare premiums, companies will often offer to beat other offers. Often employer based programs have negotiated good rates with a large company for multiple members and can pass on these savings to their employees. The younger you are and the healthier you are the lower your premiums will be. Non-smoking, healthy weight, 20 to 30 year olds pay much lower premiums that 40 year old smokers who are overweight. Make the decision to buy life insurance early and you will benefit in the long run and may not be subjected to the health reviews of older applicants.
When looking at levels of cover, check out any discounts for applying for a higher payout value as sometimes you can get a discount on premiums for choosing a higher level of cover. There may be certain age, lifestyle and health criteria to meet to benefit from these discounts. Some companies increase the monthly premiums to cover administration costs, so if your budget allows paying annually can be cheaper than paying monthly or quarterly.
To save time you can use a life insurance comparison NZ website.