Life insurance is a necessary evil if you want to protect your family. Like most of life’s necessary evils, it is a drain on your wallet. Here are five ways that you can manage that sucking sound that you hear every time you pay your premium.
- Shop around. It is wise to shop around for everything you buy.
- Buy term. Whole life sounds like it makes sense, but the additional cost is usually a waste.
- Do not buy more than you need. Look at your life situation. Will your family really need a million dollars if the mortgage is paid off and your children are supporting themselves?
- Avoid guaranteed issue policies if at all possible. The death benefit is very low and some policies will not pay out if you pass within the first two years.
- Whenever possible, pay the entire premium once a year. Insurance companies like to have all of their money upfront, so they offer discounts for paying by the quarter, half, and full year.
On top of these suggestion, stop smoking, lose weight, and exercise. Getting healthier can lower your premiums if you contact your insurer and let them know.