With so many life insurance options out there, we bet you are confused which life insurance policy will help you get maximum life insurance payouts for your loved ones. Rest easy. The following tips are what you need to reduce your life insurance premiums and increase your life insurance payouts.
Pay for life insurance premiums when due
There are no two ways about it. You stand a better chance of maximum your death benefits only when you pay your insurance premiums at the right time.
Buy when you are young and healthy
Your age and health are two important metrics that influence your life insurance premiums. And the younger and healthier you are, the lower the premiums your insurer will charge you. So, try as much as possible to buy a life insurance policy earlier to save costs and maximize your life insurance payouts.
Don’t take a loan from your cash-value account
If you bought a term life insurance policy, you can skip this point since you are not entitled to a cash-value account. However, if you own a permanent insurance policy like universal or whole life insurance, we advise you not to take a loan from your cash-value account. This is because if you don’t refund the loan before your premature death, your beneficiary will not get any death benefit from the cash-value account. Nevertheless, your beneficiary will still receive your payouts since a portion of your premium is invested in an insurance account.
Don’t surrender your policy before the maturity period
Surrendering your policy means you are not interested in the life insurance policy anymore. The consequence of making such decision is that you will pay a surrender fee, which is usually about 10-15% of the face value of your policy. More so, your beneficiary will not get your death benefits if you choose the surrender option. So, we advise you to think twice before you surrender your policy.