Can You Save on Life Insurance When Paying Annually?

To many people, a life insurance policy is a must-have for many reasons. Having something that provides those you love with a way to pay off debts, provide a beautiful service for you, and more can offer peace of mind.

Insurance is great to have for many areas of your life – car, home, pet, and health. However, not many people think about insuring their families or their lives. Life insurance is indeed the most essential insurance product you can purchase.

Learn more about the savings you can earn when you choose to pay for your life insurance annually. You may find that this is the best way to pay for life insurance and other types of insurance coverage.

The Savings You Can Earn By Paying Annually

There are multiple savings that you can get when signing up for life insurance. One of the biggest is by paying annually. You can pay the total lump sum for the insurance throughout the entire year just once. 

By paying one payment annually, you’re reducing the amount of administrative work the company has to do. This means they provide the insured with a discount due to saving them time. The discount often ranges from 3 to 5 percent. 

The different insurance companies offer different savings and rates. This is important to look into. You can speak with the specific life insurance specialist you’re working with to determine the savings if you choose to pay annually instead of monthly. Some permanent coverages have different rules than term insurance policies.

Consider Other Factors

There are other factors to consider regarding life insurance and how you’d pay. Even though this percentage seems like it is low, it will add up over time. This is something worth considering, especially if you feel that the percentage you’d save is lower than what you’d like.

Another consideration is that the higher your premiums and the amount of coverage you have, the more money you will save. This means if you’re an older individual with a decent amount of money, you’re going to get more of a price break. 

What Happens if I Pass Away Before the End of the Year?

Many people worry about what happens if you pass away after paying for the whole year. Does the insurance company keep that money for the yearly premiums? 

The company has to refund the insurance beneficiaries with the premiums that are not going to be used by the individual. This would be added to the amount of life insurance payout. There are no risks of losing your premiums that have been pre-paid for the year.

Life insurance is vital to have. Many people currently have it, and many more are looking into learning more about it and how it can benefit them. Life insurance is a great way to know you are leaving your loved ones something when you depart this earth. Make sure you pay for it most efficiently.