5 Tips To Get The Cheapest Whole Life Insurance Policy

By November 5, 2018 Whole Life Insurance

Like most people, there will come a point in your life when you realize that you have to purchase life insurance. There’s no requirement to do so, but you know it’s one of the best things you can do to protect your family after you’re gone.

Unfortunately, buying a life insurance policy is easier said than done. There’s a lot to think about, including but not limited to:

  • The type of life insurance
  • The value of your policy
  • Which company is best

In this article, we’re going to review how to get the cheapest whole life insurance policy, all without sacrificing anything in regards to quality.

Before we get started, it’s important that you understand what whole life insurance offers.

Whole life insurance is a policy that provides benefits until the day you pass on. As long as you continue to pay your premium, you can be rest assured that your death benefit will be paid out.

Also known as burial insurance or final expense, whole life is a great way to pay for expenses at death.

This is in contrast to term life insurance, as this type of policy only provides protection for a predetermined period of time, such as 15, 20 or 30 years.

While the terms and conditions of a policy can and will differ from one company to the next, this gives you a basic idea of what to expect. 

Tips for Saving 

Now that you understand what whole life insurance has to offer someone in your shoes, it’s time to turn your attention to the financial impact on your life.

Your goal is to purchase the right coverage from the right company at the right price. While this sounds impossible, there are steps you can take and tips you can follow to help you save money.

Here are five to keep in mind: 

1. Obtain Multiple Quotes 

When you receive one quote and then make a purchase, you never really know if you’re getting a good deal. You can assume you are, but there will always be doubt floating around in the back of your mind.

With multiple quotes – a minimum of three to five is a good place to start – you’ll soon have a clear understanding of which companies offer a high quality product at a competitive price.

Note: the best way to secure multiple quotes in a timely manner is to work with a broker. This person does all the work for you by securing multiple quotes. From there, all you have to do is compare quotes with the idea of making a final purchase at the appropriate time. 

2. Say No to Riders 

When buying any form of life insurance, you’ll have the opportunity to add riders. This sounds like a great idea upfront, until you realize just how much money it will cost you over the long run.

There are all types of riders, such as the ability to accelerate your death benefits if you are diagnosed with a terminal illness.

There’s nothing wrong with learning more about these, but you don’t want to add anything that will push your policy out of your price range.

Doing so will make it more difficult to afford your monthly payments in the future, thus increasing the chance of letting your policy lapse. 

3. Buy Now, Not Later 

It’s easy to put off the purchase of whole life insurance. You know you need it, but you don’t want to put the time into the process. Just the same, you worry about adding this expense to your budget.

The longer you wait the more you’ll pay, as your age and health has a lot to say about your premium.

When you buy when you’re young, you have the opportunity to lock in a low rate. Just the same, there is less chance that you’ll have a health concern, such as diabetes, that will cause your premium to skyrocket.

You can buy whole life insurance at any age, but doing so when you’re young and healthy will help you keep money in your pocket. 

4. Blend Coverage 

It doesn’t always work when buying whole life insurance, but it’s something you should at least look into.

Can you blend your whole life and a term policy?

You may be surprised at the discount you can secure on whole life insurance when you do this. Just the same, it will also save you money on the other type of insurance, which goes a long way in saving you money every month. 

5. Learn More About the Insurance Company 

Don’t assume that every whole life insurance company is the same, as each one is unique in a number of ways.

For example, the financial stability of one company may be sky high, while another is struggling to keep its head afloat.

Buying cheap whole life insurance from an insurer in bad financial health is a bad idea.

Here’s why: if the company goes out of business, you may lose your policy altogether. Just the same, if you pass on and the company doesn’t have the money to pay, your beneficiary may be out of luck.

In order to to pick the right insurance company, you should consider all of the following variables:

  • Size Of The Company
  • Rating
  • Track Record
  • Financial Strength

You may not understand all of these variables, but it isn’t that hard to compare and know which company wins. For example one company may be rated A+ while another one A-. Now you know that one is stronger that the other, even if you don’t truly understand what the rating means.

Even though saving money on a policy is a big deal, don’t do so at the expense of purchasing from a company in bad financial health. This is a risk you never want to take. 

Is Whole Life Insurance a Good Idea? 

You don’t want to simply assume that whole life insurance is right for you and your family. You want to make sure this is the case before you purchase a policy, or you could end up making a decision that costs you both time and money.

Here are some of the reasons why it may be a good idea:

  • You can protect your family in the future, even after you are gone
  • You don’t have to worry about a whole life insurance policy expiring, as it lasts for as long as you are alive and as long as you pay your premium
  • A great addition to your retirement portfolio
  • The opportunity to reinvest your dividends

These are all things you miss out on when you purchase term life insurance. 

Answer These Questions 

At this point, it’s time to take one final step towards deciding if purchasing whole life insurance is a good idea. Here are seven questions to answer:

  • Is now the best time to purchase a whole life insurance policy?
  • Are you familiar with the primary differences between whole life and term life?
  • Are you okay with the idea of paying extra for whole life insurance, knowing that it guarantees a death benefit payout?
  • What is cash value as it pertains to a whole life insurance policy?
  • Do you have reason to believe you may want to surrender your whole life insurance policy in the future for its cash value?
  • Are you permitted to borrow money from your whole life insurance policy?
  • What happens if you’re unable to make your premium payment in the future?

While these are among the more important questions to answer, you shouldn’t stop here. If you have anything else on your mind it makes sense to clear the air before taking the next step.

If you need help answering these questions and/or finding the best and cheapest whole life insurance policy, you’re in the right place.

We’re more than happy to provide you with additional information, share professional advice, and do whatever it takes to put you on the right track to success.

You now know how to get the cheapest whole life insurance policy.

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