Life insurance is a smart choice for most individuals who have dependents or loved ones that would be financiallyimpacted if you passed away unexpectedly. It's a way of insuring that those most important in your life are protected from having to take on the responsibility of your debt, your funeral expenses, your mortgage or other such burdens. If you have children it can ensure that their college expenses are paid for, or your partner has income to live on for a year while they put their life back together. In other words, it's hard to deny the benefits of life insurance coverage.
3 Tips to Avoid Overpaying Life Insurance in Ohio
Here are a few practical elements that affect your life insurance rates and that's worth looking at to see if what you're paying is reasonable.
Maintain a good driving record
Yes, your driving record affects not only your car insurance rates but also your life insurance premiums. Life insurance companies focus on calculating risk. Anything in your life that raises your risk will raise your premium. If you're planning ahead to get the most affordable life insurance, you must be smart about your lifestyle choices. Not only is driving a factor, your credit history is also considered when life insurance companies work up your cost of coverage. Take a look at your overall risk profile and see if there are any areas in which you can improve.
Maintain good health and healthy habits
Just as with health insurance, life insurance risk factors include the level of health you maintain. Insurers spend a lot of time trying to get this risk factor right. You will have to get a medical exam as part of getting life insurance, and this exam looks for a variety of factors such as obesity, mental health, high cholesterol, your family’s health history etc. Of course, many of these health risks are out of your hands, but there are some that you do have control over. One example is smoking. If you're a smoker, one of the main ways in which you can lower your premiums for life insurance is by quitting your smoking habit.
Avoid unnecessary or out of date riders
A rider is something you add on to your policy to provide additional benefits. One example of this is a disability rider that allows you to collect regular income from the insurance company if you become totally disabled and cannot work. Certain riders are very good to have, but others may not be necessary and are worth looking over again. Some riders may also be out of date or no longer necessary because of changes to the basic policy, or to your life circumstances.
It's a smart idea to check in with your life insurance advisor to go over your current policy, and to be sure you stay updated on any changes. Make it a habit to have these periodical meetings and you will feel more reassured.
Choosing the right insurance company is very important. Hill & Hamilton is dedicated to putting our clients first and this starts by providing you with the information that's meaningful for you. We have put together a useful guide that tells you what you need to know about life insurance. Download the comprehensive free ebook about Life Insurance below. If you have any questions, please contact us directly!
Further Reading on Ohio Life Insurance