Student Loan Consolidation

Are you planning on buying life insurance in the near future?  If your someone who in in their early 20′s to to 40′s you shouldn’t have much of a problem getting a policy or pay high fees for that fact.  However if you’re someone who is older than 50 and have a medical condition to boot getting a policy at an attractive price might be a bit hard to come by.  So in this article I’m going to show you a few ways to cut cost down considerably.

Consider The Type Of Policy

First off, when it comes to buying a policy or life insurance for elderly people you need to consider the type of policy you plan to buy.  Their are two basic types of policies.  The first is a term life policy which charges for the basic cost of insurance for a specific amount of time, unless you would happen to add a policy rider such as a return of premium rider.  Hence these types of policies tend to be a lot cheaper.

The other type of policy is a permanent policy such as a whole life, universal, variable policy.  These policies are much more costly since they are meant to last your entire life unlike a term policy.  However the problem is you will never be able to stop paying your premiums and they also contain a lot more extra added fees such as cash value fees, surrender charges, and even investment fees if you are investing in a variable policy.

Consider Your Coverage

So now that we know a term policy is going to be the cheaper option the next thing you need to do is determine the amount of coverage you really need.  When it comes down to it you may have way to much coverage.  Some insurance agents will argue that you need need as much as 10 times the amount of coverage you earn in a year.

The truth is you really only need enough to cover your major debts and a little extra just in case.  For example if you have a mortgage that is $150,000 and several other debts that add up to $10,000 you might only need around a $160,000 to $200,000 in coverage all together.  In fact if you are an elderly person with no debts or financial obligation I suggest you stick with a policy that has $25,000 in coverage or less.

Consider The Term Length

Now that we know the type of policy, the amount of coverage you should get, we now need to determine the length of the term policy we should get.  Typical term lengths vary from as short as 10 years to as long as 30 years.  However what most people don’t realized is that you can get the same coverage with a 30 year term but when you switch to a 10 year term the cost will be far less.

The reason for this is because the insurance company is taking a far less amount of risk by shorting up the time period, hence giving you a lower cost.  Now if you might be worried about getting a policy after the 10 year term is up all you have to do is add a guaranteed renewal rider which will allow you to get coverage no matter what after the policy term ends.

Final Thoughts…

As a final thought take time to contact your local insurance agent and have them run some quotes for you.  This way you will be able to see what kind of cost you’ll be up against.