Buying life insurance is a good thing to do, even though the person who buys it will never use it. But whether you think buying a life insurance policy is a great example of being good and selfless or not, it still makes sense to compare low cost life insurance policies to find the best policy at the lowest price.
There are a few simple things you can do to keep the cost of your life insurance policy low, but before we look at those, it would be helpful to quickly go over the two main types of life insurance so you can decide which one is best for you.
Before you can buy a life insurance policy, you will be asked to choose between a whole life policy and a term policy.
At first glance, a term policy might seem like the better choice because its first monthly premium will be less than that of a whole life policy of the same size. But the price at the start isn't everything.
Every few years, a term life policy runs out. And each time it does, if you want to keep being covered by life insurance, you'll have to buy a new policy. The catch is that every time you have to renew a term policy, the monthly premium price goes up. And the price will be highest when you're old and may not have the money to keep paying for it.
Whole life insurance is more expensive to buy at first, but since it covers your whole life, the premium you pay at the start is the same premium you will pay for the rest of your life.
And unlike a term policy, a whole life policy builds up a cash value over time. If you want to, you can borrow against this value for very little cost.
But whether you choose whole life or term life, there are still a few simple things you can do to keep your monthly premium costs down.
Keeping your credit score high is a simple thing you can do. A lot of people don't know that their credit score affects how much they pay for life insurance.
Don't smoke. If you smoke, stop smoking for real. You can't tell your insurance company you don't smoke and then die because of smoking. If you do, your policy might not be honoured, or at least not fully honoured.
Your Body Mass Index, or BMI, will play a role in how much you have to pay. From a practical point of view, this is a way to figure out how much you weigh. The more you weigh, the more your life insurance will cost. Even if you only lose a little bit of weight, your BMI could go down, which could save you money month after month, year after year.
Don't do dangerous or extreme sports on a regular basis, and don't lie about it. If you die while doing an extreme sport, the truth will come out, and your policy won't give your family the money you thought it would. Your life insurance will also cost more if you drive a sports car or work in a dangerous field.
Lastly, go online and look for several websites that let you compare life insurance policies and prices side by side. Don't think, though, that you only have to fill out the form on one site, because no site compares all the Arkansas life insurance companies.
Before you can be sure you have compared and found the cheapest life insurance in Arkansas, you will need to fill out the form on at least three different websites.
