“Yeah, I Need Life Insurance, but what is this Premium Thing?”

While we all may see the benefit of term life insurance, no one really likes paying for it. But, like anything else nothing is free so when we do spend money we want to be sure were getting a return on our money. For instance, Medical is definitely one form of insurance that accomplishes this, while life insurance may not be as directly benefiting due to the fact that it’s never of value until we die. Yeah, unfortunate I know… but in another sense, no one wants to leave our loved ones unprotected so it makes perfect sense to pay for a life policy. When that comes about you need to determine how you are going to pay for the policy and that’s where we come in because if you select the right way you can save yourself a decent of money in the long run.

 

When you first apply for life insurance you’ll be asked to select the premium mode you want. This is just referencing whether you want to pay your premium annually, semi-annually, quarterly, or monthly. The least expensive option is going to be annually due to the least amount of activity with the surcharge to cover admin costs. So, the more you send an invoice in the more it’ll cost you. That’s why quarterly will be the most expensive premium mode the majority of the time. Now you may be thinking why isn’t monthly the most expensive option? The reason is that most life insurance companies require monthly payments to be set up as an automatic draft from your bank account. This means that they will not bill you directly. Many people like this because that means they don’t have to deal with it but if you don’t like funds being withdrawn from your account you should choose one of the other options. As far as the amount of money between premium modes is concerned its negligible. However, over the course of the policy it can add up and wouldn’t you rather keep as much money as you can. An example of this would be the options to pay $1,200 annually, $1,260 semi-annually ($630-2 times), $1,280 quarterly ($340-4 times), and $1,270 monthly ($105.83-12 times). So, like I indicated a small amount of money, but over time can add up to be significant and if you can afford annually why not save yourself a few bucks?

 

Another area to focus on is the acceptable forms of payment. For some reason, the life insurance industry is still stuck in the dark ages and as a result apple pay, PayPal, and even credit cards are frowned upon. The one exception is that many companies will allow you to charge your very first premium payment. While you won’t gain massive points from this you will at least be able to get your policy coverage started quickly. However, for the rest of the payments you have 2 choices one being a paper check and the second one being an electronic funds transfer. The EFT is great if you don’t want to worry about sending a check in and if the money will be there regardless (required for monthly choice). This though frustrating is not a critical decision when applying for term insurance. The obvious choice is to set up annually to save as much money possible, but if you rely on income maybe monthly is the right choice for you. Regardless of what you choose, know that you change the mode at any time by completing a simple form. That’s why it’s important to find the right life insurance agency who can find the best policy to fit your needs. Here at Giggle we have the most experienced marijuana life insurance agents in the business, and we want to help you find the best policy so be sure to visit giggleinsurance.com to get quoted.

The information contained herein neither constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. The information and descriptions contained in this article are intended as general information and are not necessarily complete descriptions of all terms, exclusions and conditions applicable to products and services. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

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