Cheap Alaska Life Insurance Company
Reader’s Question:
Will it result to a cheaper life insurance policy if I reduce my own level death benefit term policy than by decreasing mortgage term or credit life insurance policy? Should I split my insurance policies, or should I get only one to make it cheaper in Alaska?
Karl
Anchorage, AK
It’s a good thing you asked, Karl.
Definitely, yes reducing your level death benefit is a cheaper alternative for mortgage decreasing term or credit life insurance policy which are often expensive. You can buy a cheaper priced term level policy and reduce the coverage amount of your term policy on any policy anniversary and reduce your premiums according to the company’s guidelines. It can normally be done by using a policy change form. You may only decrease your coverage amount to the product’s minimum death benefit limit.
What is not a cheaper move for life insurance policy though is when you purchase more than one insurance policy from different companies in Alaska. If you do so, such as buying 2 smaller policies from 2 different companies, you will be paying 2 policy administration fees. Also, by doing this, you miss our on a volume discount that many companies offer for larger policy…similar to a quantity discount when you purchase a merchandise.
You might want to consider shopping for more cheaper options online by simply typing in your zip code on the space located on this page.
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