Insurance quotes homeowners health life package policies are good because they offer you a discounted rate for buying all of these policies as one product.
If you have contacted your local home owners insurance broker to obtain a package deal you may not be informed of some important information…
But here’s the catch; if your needs change this policy may not be a great value. And, if you need to change it at a later date your life insurance policy premiums are likely to change for the worse as well.
Package pricing is a popular way to save money, but with life insurance it just does not make logical sense. Life insurance is a permanent product. Once you have a policy; you should count on keeping it for the next 10, 20, or 30 years.
For whole life products you may keep your life insurance for the rest of your life. So packaging a life product with a product that is more cyclical like health insurance is bad business.
Important; each year you get older, your health insurance premiums will increase.
This often is cause to jump from one health carrier to another in order to keep costs in check. This is common practice among health insurance brokers.
Each year you get older life insurance gets more expensive.
Unless, you buy a long term policy and get your rate locked in; buying a 10, 20, or 30 year term life insurance product will lock in that rate for the term of that plan. (10, 20, or 30 years) If you keep renewing a life insurance plan every few years you rates will become very high when you get into your later years and it is likely to be unaffordable.
How to Avoid this problem:
1. Package your cyclical insurance products together; like your health insurance, homeowners insurance, and auto policies. But keep your life insurance separate to ensure that you can take advantage of your age today and be rewarded for planning ahead.2. Get a Term or whole life insurance policy that will cover you for the maximum amount of time that you believe you will need coverage. If you think you may need life insurance for the next 20 years, get a policy to cover you for the next 30 years just to be safe. Keep this policy in force and up to date.
Insurance quotes homeowners health life combinations are a great idea. But for most of us they don’t make much a sense. Maximize your dollars by looking at the whole picture and planning accordingly. Don’t forget to plan for the next ten, twenty and thirty years.
Decisions that you make now can affect the affordability of some insurance products down the road. Insurance to cover your life is one thing that should also be obtained as permanent as possible (an affordable long term plan –like a 30 year term insurance policy) and as soon as possible –like yesterday.