The purpose of any insurance is to provide financial support should an unexpected event arise. From health insurance to auto insurance, various policies intervene if you get sick, have a car accident, or experience damage to your home. However, unlike other insurance products, life insurance is meant to provide a safety net for your spouse or other loved ones after you pass away. The annual premiums you invest in a whole life insurance policy ensure that a death benefit is paid to your designated beneficiaries. The proceeds from plans such as a term life policy or whole life insurance policy can provide survivor benefits for funeral costs, debt, or financial support. In addition, Colonial Penn commercials are frequent advertisers, to put it mildly. The Company is a life insurer that primarily markets low-cost final expense insurance policies to seniors.
As a general rule, you should consider a few factors to determine if you need life insurance coverage. Variables like your age, amount of debt, and financial obligations will help determine the need for a life insurance product. Deciding on the right life insurance settlement policy and the coverage options for your situation will require some research and considerations.
As with most insurance policies, one of the biggest factors most people consider when selecting a policy is the annual premium rates. The majority of people want a policy that they can afford but also provides quality benefits. Insurance companies consider several factors when determining life insurance rates. In general, however, your age, medical history, and type of policy will influence the rate that you might pay. As with most things, however, the cheapest product might not always be the best choice. There are some things that you can do to help lower your rates and get the best policies. Let’s take a look at finding the best life insurance rates.
Earlier is better.
When it comes to purchasing life insurance, earlier is always better. One of the best ways to secure the best life insurance policy rates is buying a plan while younger. In general, life insurance premiums rise with each year you aren’t covered. For example, a 30-year-old male will pay around $45 per month for term life insurance while a 60-year-old male would pay about $480 per month. When you purchase life insurance as a young adult, you lock in those lower rates for the duration of the policy.
Of course, if you didn’t purchase life insurance at a young age, this doesn’t help. However, there are some options available for a fair price even if you are older. For example, Colonial Penn life insurance rates target those who are older with a price of $9.95 per unit of coverage. This is guaranteed acceptance life insurance with no medical exam or health questions. The amount of coverage you will receive depends on your gender and age.
Shop by type.
In almost all cases, term life insurance is the cheaper option when looking for lower rates. It is also the most straightforward type of coverage. As the name suggests, the policy is only good for a certain amount of time. Most insurance companies offer terms of 10, 20, or 30 years. A person in their mid-30s could realistically take out a term policy for $1 million in coverage and pay less than $50 a month. These policies have the best rates as the insurance company is thinking that you will outlive the policy.
Whole life insurance is a little more expensive as it lasts your entire life as long as you continue to pay your premiums. However, this type of policy can build cash value that gains interest over time and can be withdrawn should the need arise. Whole life policies can be a valuable asset for some people. However, the fees and investment component make it five to 15 times more expensive.
Finding the right life insurance policy for your situation requires considering many factors such as price, benefits, and your need for coverage. However, with some research and comparison shopping, you can find the best life insurance policy for your needs.