Did you know that September is Life Insurance Awareness Month? How aware are you of life insurance and its many benefits? Is life insurance important to you? Not a big deal? Maybe you’re neutral on it? Some people may consider life insurance to be an afterthought, something they don’t need right away and that they can get around to buying when they’re a little older. Life insurance may just not be considered a necessary expense when you’re starting your career and have limited income since, after all, you’re young, healthy and only going to be using it once.
Another way of thinking about life insurance is that it’s essential at any time of life, and it’s there to help people you care about in what may be an unfortunate time of need. The cost of life insurance varies, and it can be customized to meet financial, age and lifestyle needs. With research and appropriate lifestyle and purchasing choices, life insurance can be both affordable and available.
Here are five quick tips on how to save money when buying life insurance
- Stay in good health! Being thoughtful about nutrition, exercise, managing sleep and handling emotional stress can help you stay healthy and perhaps avoid medical conditions that might affect your premium costs. Not smoking, limiting consumption of alcoholic beverages and controlling your body weight can help keep insurance premiums lower, especially for policies that require an initial or regular medical examination.
- “Right size” insurance coverage. Consider carefully and only buy the amount of policy coverage you need now—but buy higher coverage later if you need it. Paying for millions of dollars in coverage when you don’t have a family or own an expensive home is probably excessive. Buy the amount of coverage that is right for your life at the moment and adjust it as necessary if more coverage is wanted in the future.
- Pay premiums upfront. There may be a cost savings in paying your entire annual premium all at once rather than throughout the year. Some insurers will add in service fees for paying premiums monthly, quarterly, semi-annually (or even for using a credit card). If your insurer charges these installment fees, then consider if you can afford to pay all the premiums at the beginning of the year. You may also want to consider that if your insurer charges these fees, then maybe it’s time to re-evaluate your policy and look for a different, lower-cost insurer for your coverage.
- Consider choosing and maintaining a term life policy. Two of the basic types of life insurance are term and permanent, and it’s important to understand the differences between them. Term life insurance is generally bought to provide coverage for a specific period of time for years, or a specific need such as paying for college. Term life insurance policies in many situations may be the most affordable life insurance, and some term policies may be converted to permanent insurance in exchange for paying higher premiums. Permanent (“perm”) life insurance lasts for your lifetime and pays a death benefit whenever you die. Permanent life insurance policies have the insured pay their premiums and then grow them in tax-deferred accounts.
- Price and feature shop different policies. As you research insurance, consider what features are most important to you. Next, carefully compare features to understand what is similar and what is different among policies, either from the same or multiple insurers. While a policy may seem less expensive than another, it may have limitations that make it less of a good deal overall.
- Bonus tip #6—Buy life insurance when you’re younger. The cost of life insurance goes up as you age and become susceptible to more health problems that could limit your lifespan. Generally, the younger you are, the less expensive a policy will be, which is another good reason to get life insurance earlier in life. Getting life insurance when you’re younger can benefit you now and later.
What if I have questions about life insurance?
There are lots of options for life insurance, and it's vital that you find coverage and a policy that precisely fits your needs now and for the future. If you'd like to know more about life insurance, then Members Insurance Advisors1, Delta Community's wholly owned subsidiary, is available to guide members to the appropriate life insurance policy with the assistance of Covr Financial Technologies, Inc.2 and TruStage®3.
How about a few more ideas that might save money?
For more information that may help you manage your costs and finances, look into the free Delta Community Financial Education Center webinars on a range of practical, “how to” financial topics. Please visit the Financial Education Center's Events & Seminars page to review and register for its on-demand webinars.
The Credit Union’s blog has more information that could be educational and save you some money:
1Members Insurance Advisors is a wholly owned subsidiary of Delta Community Credit Union. Insurance products are not deposits of Delta Community Credit Union and are not protected by the NCUA. They are not an obligation of or guaranteed by Delta Community Credit Union and may be subject to risk. Any insurance required as a condition of an extension of credit by Delta Community Credit Union need not be purchased from Members Insurance Advisors and may be purchased from an agent or an insurance company of the Member's choice. Business conducted with Members Insurance Advisors is separate and distinct from any business conducted with Delta Community Credit Union. The insurance offered is not a deposit and is not federally insured or guaranteed by Delta Community Credit Union.
2Life Insurance products sold through Covr Financial Technologies Inc ("Covr"). Covr sells insurance as an agent or broker by contractual agreements with its insurance carrier providers. COVR is licensed in the following states: Delaware (3000067942), Idaho (607086), California (0L77229). All other state license numbers are available on our State License Disclosure Page.
3TruStage™ Life Insurance is offered by TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company. The insurance offered is not a deposit and is not federally insured or guaranteed by Delta Community Credit Union. LIFE-1112-C9B
