Everyone says that life insurance is a good thing to have, but what happens when it becomes too expensive? As important as having a life insurance policy is and all of the benefits that come with it, the premiums can become costly as a retiree.
If you’re a senior citizen struggling with your finances and are unsure about managing expensive life insurance premiums, this article is for you. We’ll show you some tips on what to do when you can’t afford those expensive premiums any longer.
There are some things that you can do to lower your life insurance premiums. Of course, there are other options that don’t involve negotiating with your insurance company for a lower premium. Here’s everything you need to know when you’re struggling to keep up with costly life insurance premiums!
Lower Your Life Insurance Premiums by Getting Healthier
One of the most commonly accepted ways to get a lower life insurance premium is to work on your health.
The less healthy you are, the higher your life insurance premiums will be and vice versa. You can get your premiums lowered by losing weight or stopping smoking, for example. However, you may have to undergo new underwriting to prove that you have made a significant difference in your health to get the lower payment.
For most people, that would mean giving up some of the foods they love and exercising more. Many seniors find these changes distasteful as they’re interested in enjoying life in their golden years.
Look for Unneeded Add-Ons
If your life insurance premiums seem expensive, it’s worth looking into the details of your policy for fees associated with unnecessary add-ons, commonly known as riders. While some riders are included at no additional cost, an insurance agent will often advise a client to add certain riders if they are beneficial. These riders may have made sense when you purchased the policy but may no longer make sense in your current situation. It is a good idea to review your insurance policy with your agent at least once a year to discuss its features and associated costs.
For example, you may find that paying your premiums quarterly instead of monthly can reduce your premiums by 2-5%, depending on the insurance company. Paying premiums annually will lower your premiums even further. Often people find that they are paying for coverage that they don’t need. Accidental death benefits, for example, can add additional costs to your overall premiums. If you don’t need it, you should eliminate that rider.
Shorten the Length of Your Policy
Another way to lower your premiums is to shorten the length or term of your life insurance policy. The amount and duration of coverage will determine your premium. If the premiums for a permanent policy are too expensive, you may ask your agent to quote you for a term policy.
A term life insurance policy is where you get coverage at a fixed premium for a certain period of time. Since the policy has an expiration date, it is typically less expensive than a permanent policy during the term. Many term policies continue beyond the stated period, but often with much higher premiums. Many term policies offer the ability to convert your term policy to a permanent policy with guaranteed insurability. Term insurance appeals to many who buy it when they are younger and want to keep costs to a minimum, then decide to convert the policy to a permanent one as their needs and circumstances change. This feature is essential for those who experience a serious health issue after purchasing their term policy and may no longer qualify for additional insurance.
Managing High Premiums
The key to dealing with high premiums is to know how to manage them. Some seniors are so concerned about missing a premium payment they start using savings, retirement accounts or run up their credit cards.
The problem with this approach is that it doesn’t solve the issue, and more importantly, you’ll find yourself in an even worse position than before.
So how do you manage excessively high premiums? Countless seniors across the country are discovering that they are much better off just selling their life insurance policies.
What Is a Life Settlement?
Selling your policy is called a life settlement, and it can be a financial solution for many issues. When you sell your policy, you get a lump sum that can be significantly more than the cash received if you terminate your policy with the insurance company. Even term policies can be sold. Once you sell your policy, you are no longer responsible for the premiums. The buyer takes over paying the premiums.
Just think of all of the things you could do with that kind of money, and the best part is you won’t have to put it towards your premiums because you won’t have any!
Say Goodbye to High Premiums and Hello to MRE Finance
Why keep paying premiums you can barely afford or on a policy you no longer need? It’s time to consider the benefits of selling your policy. MRE Finance specializes in helping seniors, and those who are chronically ill sell their life insurance policies. Give MRE Finance a call today! We can help you sell your policy.
Our free life settlement calculator can provide you with an estimated value of your life insurance policy within minutes. Click https://mrefinance.com/free-life-settlement-calculator/ or pick up the phone right now and call the team at MRE Finance today! 1-800-521-0770. We’ll answer all your questions as we walk you through the life settlement process with ease!