Economy Life Insurance

By: EconomyWatch   Date: 10 September 2009

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According to the Bureau of Labor Statistics of the US Department of Labor, roughly 70% of workers in the private industry had access to employer-provided medical care benefits in March 2009. While 90% of the high wage earners received such benefits, only 25% of the low wage earners received the same. These statistics underscore the importance of economy life insurance.

Term insurance is the simplest and most economical form of life insurance that offers financial support to the family in case of a policyholder's death within the term of the insurance policy. In this form of life insurance, the premium amount remains unchanged through the entire term of the policy.

Economy Life Insurance: Features Sought

The features to seek in an economical life insurance policy are:

  • Benefits should be tailor made to suit individual requirements

  • Should have cost efficient rates

  • Should be flexible, so that it can be altered to suit changing requirements

  • Should have death benefit that can be extended up to 70 years of age

Economy Life Insurance: Tips

You can lower your life insurance premiums through the following measures:

  • Buy term life insurance at a young age: At a young age, you might not feel the urgency for insuring your life and may not have substantial financial requirements. However, at this age, the term life rates will be quite low. Lock in high term life insurance coverage at this stage when your health is good and the prices are low.

  • Opt for appropriate insurance coverage: Most financial planners recommend purchasing coverage equal to six to ten times your annual gross income.

  • Select the right term for the insurance cover: While people in their 30s or 40s should opt for a 20-year term length, a person close to retirement should not opt for a term of more than ten years. Similarly, people trying to quit smoking must purchase a shorter term policy. After qualifying for non-tobacco rates, one can replace the former policy with a longer-term one.

  • Look for price breaks in insurance coverage: Check out the premium when your coverage increases to $250,000, $500,000 or $1,000,000. Companies often offer price breaks at certain coverage amounts. As a result, people can get the opportunity to pay a lower premium for more coverage.


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