Life Insurance premiums continue to drop

One of the greatest temptations for the cash strapped consumer is to cancel his or her life insurance policy and medical cover.

Fortunately legislation protects people from doing this as they cannot cash in their retirement annuities until age 55, or exit their pension funds while they remain employed at the same company.

Yet in these tough times you need life insurance and medical cover more than ever.

According to reports the cost of term life insurance has continued to plummet. Over the past decade, the annual premium for a $ 500,000, 20 year level term policy for a healthy 40 year old male (nonsmoker) has fallen by 33 percent to an affordable $345. The monthly repayments for this policy are $28.75, which is less than the cost of an entrée at an exclusive restaurant.

Installments have fallen by quite a substantial amount recently so if you have taken out a policy in the last few years and have remained in good health, then you should check into refinancing. Check out the current cost of a new policy and you could save yourself a fair amount of money, or comfortably increase your death benefit without having to pay any additional costs. One important thing to remember is not to cancel your existing policy until your new one is up and running.

When considering life insurance it might not be a bad idea to consider burial insurance (or otherwise funeral insurance) as the average cost of a person's funeral these days is not cheap. A cremation can cost in the vicinity of $5000 and around $7,500 for a burial plot funeral. In organising this you actually spare a thought for your loved ones as your insurance policy is buying the peace of mind, that you will not have to worry about finances at a very difficult time. Make sure that your policy is adjusted for inflation over time, as you will not want to be caught short. Also check that it covers transportation costs, as in some policies this is an optional extra. Check that the policy covers things like burial and fees payable to the cemetery.

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