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Getting Your Life Insurance in Order

By on May 7, 2012 in Insurance, Life Insurance

Getting Your Life Insurance in OrderAccording to a recent survey by LIMRA, 30% of households in the U.S. do not have any life insurance coverage. This statistic is up from 22% in 2004, which indicates that the recessionary times affected more than just the real estate, credit and mortgage markets. According to experts, when individuals and families need to cut spending, one of the “extras” to go is life insurance. Shopping for and establishing life insurance can be a daunting task, which means it is also a purchase than many individuals avoid—no matter what the cost or financial situation. Once you educate yourself and get a handle on the different life insurance options, you’ll find it much easier to choose the policy that is right for you and your family.

Annual Renewable Term

As the title of this type of life insurance indicates, the policy term lasts one year at a time. While it is the most affordable type of life insurance, with each annual renewal comes an increase in the annual premium amount you pay. Experts suggest this type of life insurance policy as a low-cost and short-term fix, such as when you are unemployed or simply cannot afford any other type of life insurance.

Level Term

The next level up is a level term life insurance policy. These types of policies are also affordable coverage options. The reason they are called level term policies is because the premium payments remain the same for the entire term of the policy up until the date it expires. Minimum required coverage amounts vary from person to person, but experts suggest that the coverage amount should be high enough to pay off outstanding debts and provide enough income to supplement the income from the loss of the policy holder’s income.

Professional Group Insurance

Another affordable place to turn to for life insurance is a professional group of which you are a member. Whether you are a freelance writer, independent insurance agent or a Realtor®, a professional membership group or association typically offers its members life insurance coverage options. Rather than simply selling an individual policy, insurance carriers tend to offer group discounts for the members of an organization that establish a policy.

When you consider that life insurance covers the unexpected, or what may happen in the future, it can be a hard pill to swallow when making the premium payments. When you know what your options are, it makes it slightly easier to choose the type of life insurance policy that is not only affordable, but will protect and help your loved ones in the event of your death. Use your knowledge, memberships and other discount avenues to find the best possible coverage at the most affordable price for your budget.

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