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How
Much Whole Life Insurance Costs
Consider The Total Cost Of Your Policy:
Some policies appear to cost more, but may, in fact, be cheaper
when you look at the total cost of the policy. For example,
annual renewable policies increase your premiums
every year and thus may appear to be more expensive than
level term policies where the premiums never increase
(although the initial premiums for a level term policy will
be higher). But, in fact, level premium policies may involve
higher costs over the policy's full term, and become particularly
expensive when you try to renew your policy at the end of
the term.
Quit
Smoking Now!: The facts prove it: Tobacco users are twice
as likely to die as non-tobacco users while they are insured.
Insurance companies take this into account when they set their
premium and cash benefits levels. You can save
from 20% to 30% on premiums by quitting smoking. (*American
Journal of Public Health, September 1995, Vol. 85 No.
9)
Standard
Vs. Preferred Risk: Many insurance companies offer lower,
preferred rates to people who appear to be in better health
and live a lifestyle that promotes a healthy, accident-free
life. If you're in this category, you may be able to get a
much better deal on your life insurance. See "Understanding
Standard and Preferred Risks" for more information.
First-To-Die
Policies: First-to-die permanent life insurance policies
pay cash benefits regardless of which spouse dies first. Covering
both spouses with one policy can be cheaper than buying two
policies.
Consolidating
Policies: If you have a number of small life insurance
policies, you can save money by consolidating your policies
into one larger policy that offers the same coverage.
Shop
For A Better Deal Now: Are you getting the best deal on
your life insurance? The only way to be sure is to shop around.
But it is important that you do your shopping now while you
are in good health, insurable and can qualify for a good rate.
Remember, the longer you wait, the older you will be and the
higher your rates may be. So, it's advisable to lock in your
best rate now and stick with it!
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