1. Purchase term life instead of whole life. Term coverage is cheaper than whole life. It also covers you for a set time period like as long as your kids live at home, for example.
2. Stick to basic coverage. Multiple riders that cover your kids or allow you to purchase more insurance later on can enhance your life insurance coverage. If saving money is your primary goal, though, skip these options and purchase basic coverage only.
3. Choose a lower coverage amount. Experts recommend consumers purchase a life insurance policy that's 10 times your annual salary. If a policy of that amount is too expensive, try to at least cover your mortgage and debt repayment, monthly expenses, funeral costs and any educational expenses your survivors may incur.
4. Buy while you're still young. Young people often receive better insurance rates than older adults. The sooner you purchase life insurance, the better your chances of saving money on a policy.
5. Stay healthy. Insurance companies often charge higher rates to people who are in poor health or who suffer from certain conditions like diabetes or heart disease. Other health conditions that can affect life insurance rates include: gender, tobacco use, overall health, family history and lifestyle.
6. Bundle policies. By purchasing life, auto and home insurance from the same company, you can save money. Ask your agent for more information about bundling your various insurance policies.
7. Comparison shop. Numerous companies offer life insurance, so comparison shop as you find affordable rates.
1. Accelerated Death Benefit Rider
Receiving a terminal illness diagnosis is emotionally and financially devastating. With an accelerated death benefit rider, you receive 40 percent of your benefits now to pay for treatment or other expenses. While this early payment reduces the amount of money your survivors receive in the future, it can ease your current financial burden and potentially prolong your life.
2. Guaranteed Insurability Rider
You might be in good health today and eligible for affordable life insurance. A change in your health condition could make you uninsurable in the future, though. With a guaranteed insurability rider, you never have to worry about needing a medical exam to qualify for life insurance.
3. Waiver of Premium Rider
Add a waiver of premium rider to your life insurance policy and receive a free pass from paying your premium. You can use this rider if you become ill, injured or unable to work. It's a beneficial option for sole earners or anyone who doesn't wish to lose life insurance coverage during a health or other crisis.
4. Spouse Insurance Rider
When you have life insurance but your spouse doesn't, you're both taking a risk. Provide your spouse with coverage, too, when you purchase a spouse insurance rider. Select the same amount of coverage as you currently have or a lower amount as you buy peace of mind and reduce your future financial risk.
5. Long-Term Care Rider
Health care expenses during your senior years can quickly drain savings, especially if you live a long time or have serious medical challenges. A long-term care rider finances your nursing home care. Although the payout reduces the benefits your survivors receive, you receive essential care in your senior years.
1. A sudden increase in living expenses that makes purchasing insurance impossible.
2. Purchasing health insurance would deprive you of necessities like food, shelter or clothing.
3. Another legitimate circumstance that prevents you from obtaining health insurance.
1. Atherosclerosis (arterial disease)
Average cost: $19,219, a 17.1% increase, Medicare pays $3,188
2. Back and neck procedures, excluding spinal fusion
Average cost: $36,215, a 22% increase, Medicare pays $5,818
3. Chest pain charges
Average cost: $19,867, an 18.1% increase, Medicare pays $3,029
4. Circulatory disorders, except acute myocardial infarction with cardiac catheterization
Average cost: $39,093, a 15.1% increase, Medicare pays $6,189
5. Degenerative nervous system disorders
Average cost: $28,033, a 17.2% increase, Medicare pays $6,020
6. Fractures, sprains, strains and dislocations other than femur, hip, pelvis and thigh
Average cost: $22,041, a 17.3% increase, Medicare pays $4,100
7. Medical back problems
Average cost: $26,214, a 17.5% increase, Medicare pays $4,825
8. Percutaneous cardiovascular procedures without a coronary artery stent
Average cost: $75,331, a 17.2% increase, Medicare pays $12,743