Even though buying life insurance is the responsible thing to do, it's not required. A lot of people don't buy life insurance because they don't want to spend the extra money on something they won't use right away. Others just don't want to think about their own deaths. For example, paying the electric bill each month isn't as bad as it used to be. Every day, you use electricity. On the other hand, life insurance policies are usually only used in case of a financial emergency or the policyholder's death.
But most life insurance companies let you pay for your policy in one of four ways: monthly, quarterly, semi-annually, or annually. Your life insurance agent will be happy to tell you more about each payment option.
Monthly
When you have the money, making monthly payments on your life insurance policy is sometimes the best option. But if you pay monthly, you may end up paying more than if you paid quarterly, semi-annually, or yearly. This is because many life insurance companies offer discounts if you pay quarterly, semi-annually, or annually.
Quarterly
Sometimes, quarterly payments are the best choice because you can save up for a few months before sending payment.
Semi-annually
Semi-annual payments aren't quite as big as annual payments, but they do give you the chance to save and pay twice a year.
Annually
You might get a lump in your throat if you pay your life insurance premiums all at once every year, but depending on the life insurance company, this could save you money.
Talk to your life insurance agent about the different ways you can pay for your policy, whether you're thinking about getting one or already have one. You might think that one payment option is best for you, but the advice your life insurance agent gives you might help you see that another payment option is better.
