You are all your child has – what would become of them if something happened to you? This is precisely why you need life insurance.
If you’ve been looking into traditional whole life insurance, you probably have a headache from all the different factors – not to mention the price tag!
As a single mom you’re mostly concerned about making sure your little one is taken care of during the critical younger years. This is why term life is such a great option for you.
Not only is term life insurance the simplest type of life insurance out there, it’s also far less expensive than traditional whole life policies.
You can get coverage for a specific period of time and if you outlive the term and want to continue coverage, you can do so.
One of the things that makes term insurance so single mom friendly is that you can get it in an instant. That’s right, no medical exams, and no endless application process. With instant issue term life insurance you could complete the entire process online. You could get an answer within minutes, pay with a credit card and print out your policy – all in one shot!
Contemplating how long you’ll live isn’t fun. However, it’s an important fact to consider when shopping for term life insurance.
Being a single mom, consider the age of your child and how much you can afford to pay per month. Then, choose a term that will keep them protected until they become financially independent.
If you own a home, take a look at your mortgage. If you have a 30-year loan on your home, consider getting a 30-year term to make sure that the house is protected while it’s being paid off.
Term life insurance is way cheaper when you’re young. So a big part of getting cheap term life insurance cheap is locking in protection at a young age when your health and rates are both good.
Also, it’s not just about your actual age. Most companies will increase your rates six months before your birthday. So don’t wait too long after blowing out those candles to get coverage. This is called "age nearest," and the added cost can really add up over a 20-year term policy.
You may assume that since health insurance is a better deal through your job, the same must be true for life insurance. Not necessarily the case!
It may be convenient, but it may not be the best deal because work policies are based on the profile of the people you work with. So even though you have a younger, healthier, less risky profile, you may be paying the difference for the guy down the hall who doesn’t take such good care of himself.
Even if you get a better deal on life insurance from your job, consider getting an individual policy instead. When you leave your job, your life insurance doesn’t come with you. Plus, you might decide on a career change once the little one starts school. You may be better off with an affordable term life insurance policy that will cover your dependents no matter what happens at work.
Get the amount you need – not less, but especially not more. You’re not trying to turn your child into a trust-fund baby should you die, you’re just making sure that they’re taken care of should the unthinkable happen. Independent financial planners recommend the following rule of thumb: purchase an amount of coverage equal to 6-10 times your annual gross income.
A lot of insurers offer so-called “price breaks” at specific levels of coverage. For example, going for $250,000 instead of $225,000 could actually save you money. Fact is a lot of people wind up paying less for more because of price breaks. Check it out for yourself by quoting the difference in rates between $250,000, $500,000, or $1,000,000 policies.
A lot of term life insurance companies will give you a discount for paying premiums annually or allowing them to automatically debit your bank account every month.
Make sure you’re doing a double take on your life insurance policy AT LEAST every three years. Any time your circumstances change, check for a lower rate. If you wind up replacing a policy, make sure you give the new one enough time to take effect before canceling the other one – this way there will be no lapse in coverage.
Term is a Bargain, But You Can Still Save More!
Looking for the best possible insurance rates?
Trying to find a local agent?
Go to our free resource center link page. You'll find these answers and many more....
Copyright © 2009 – 2010 Gold Rush Insurance. All rights reserved. FreeInsuranceAdvice.com is a property of InsWeb.com.