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Getting Life Insurance for an Affordable Cost

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When you start looking for life insurance, you will want to make sure that you can get the best coverage for your family. When you talk to a life insurance agent St Charles MO, you will find that there are a lot of steps you can take to make the whole thing easier on yourself.

Develop healthy habits. Stop smoking, lose weight, do anything you can to make yourself “less of a risk.” Did you know that obesity costs Americans millions of dollars over their lifetime? Your premiums will start off high if you have any of the target risk factors.

Look at what you’ll really need.  People have a habit of buying too much or too little life insurance. Ask yourself the important questions: Do I have kids in school? Is there a mortgage or vehicles to be paid for? Who will be affected financially by my passing?

Check for financial soundness. The Better Business Bureau (www.bbb.org) and other websites can give you an idea if the insurance company that you are purchasing from is financially sound. This is important, considering you’re buying something that you will be holding for 20 or more years.

What kind do I want? There are 2 types of life insurance that you can get: Term and permanent. Now, the definitions are obvious; Term, you buy for a period of time (usually 10, 20, or 30 years), and permanent is until you pass. Why would you want to get one over the other?

  • Term: Much more inexpensive (because it’s only for a certain period of time), set cash value, usually renewable, many companies offer that you can upgrade to permanent.
  • Permanent: Some of these create a “savings account” that the money you put in is in a money market account. More expensive. You can take out loans against it (similar to home equity).

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