Purchasing home insurance is an important step towards safeguarding your most valuable asset. However, navigating the complex world of insurance policies can be daunting. Below we’ve compiled a collection of clever tips to help you make a well-informed decision.
This article will provide the necessary information to help you secure the right home insurance, ensuring it meets your needs and provides peace of mind.
Determine Whether Purchasing More Might Save You Money
Opting for more coverage can help reduce your premiums. Insurers have cost-per-thousand-dollar thresholds where prices decrease significantly. Find your insurer’s price breaks, such as $250,000, $500,000, or $1 million.
Round up to the next $100,000 when getting quotes, which often results in better deals. Even for small policies, requesting a quote for $100,000 can yield competitive prices.
Work with An Independent Agent
While online shopping for life insurance can benefit many, it may not be ideal if you have underlying health issues.
Insurance companies apply different pricing to various medical conditions and risk factors. Securing a better health rating can result in more favorable premiums. Find an insurance carrier that is more accommodating to your specific health condition.
‘Ladder’ Policies that Align with Financial Obligations
When buying term life insurance, it’s common to choose a policy term that covers your longest financial obligation. However, if debts end at different times, consider a laddering approach. This involves purchasing multiple policies of different lengths to match each financial need.
By doing so, you avoid over-insurance and pay only for necessary coverage. Consult a financial advisor for guidance on implementing this strategy effectively.
Include a Chronic Illness Rider
A rider is an add-on to your life insurance policy that provides extra benefits. While most riders aren’t worth the cost, the chronic illness rider is an exception some insurers offer at no charge. With this rider, you can access your death benefit sooner if you have a chronic illness.
Unlike an accelerated death benefit rider for terminal illnesses, the chronic illness rider covers a broader range of conditions. However, it may require a doctor’s certification of the condition’s lifelong duration. The remaining benefit goes to your beneficiaries.
Attach a Check to Your Application
You can obtain temporary life insurance coverage by including payment for the first month’s premium with your application. This ensures immediate protection for your beneficiaries while waiting for the underwriting process, which can take weeks.
Look for the “Temporary Life Insurance Receipt” in your application for details. It’s not mandatory but provides peace of mind during the application process.
