There are ways to find inexpensive life insurance, so it may not be as pricey as you might expect. Rolling Stone might earn an affiliate compensation if you use a link on our website to buy a product or service that has been independently reviewed.
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You want to buy a life insurance policy to safeguard the people you care about, but you don’t want the premiums to go over your spending limit. There are ways to find inexpensive coverage for life insurance, so it might not be as pricey as you might believe.
Related: Use Policygenius to Compare Quotes from Top-Rated Life Insurance Companies
Choose term life insurance, first.
Term life insurance and permanent life insurance are your two major policy type choices when you buy life insurance.
“Term life insurance is the most affordable type of coverage for life insurance. According to Cliff Pendell, vice president of marketing and operations at JRC Insurance Group, it offers a specific amount of coverage for a specific amount of time, typically 10 to 30 years.
Term life is frequently the best option if you require short-term coverage, such as income replacement during your working years. There are certain life insurance providers that offer terms up to 35 or 40 years, including Protective Life, AIG, and Banner Life.
More: The top term life policies
When you acquire permanent life insurance, your protection is perpetual (as long as you pay the premiums). Because of the longer duration of coverage and the frequent accumulation of cash value, permanent life insurance will be more expensive than term life.
2. Purchase life insurance while you’re still young and able.
It’s simple to put off purchasing life insurance from year to year. When you get overly busy, life insurance may go further down your priority list. Cost is the risk of postponing a purchase: Even if you’re in excellent health, your life insurance quotations will increase each year as you age. Additionally, life insurance rates may increase if you experience medical issues.
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According to Caroline Brooks, assistant vice president and counsel, head of advanced markets at John Hancock, “How much you pay for life insurance depends largely on your age and health, which often go hand-in-hand—means as people age, statistically they are more prone to illness or other health complications.” “Locking in insurability when you are young can provide coverage at a reduced cost today, but also provides you a lot of freedom down the road.”
To cover income replacement, for instance, you might buy term insurance. However, if your long-term needs alter, you might decide to convert the policy to permanent life insurance. Therefore, it is wise to purchase life insurance as soon as you realize you need it in order to lock in the cheapest price.
“Try to live an active lifestyle and steer clear of vices like smoking if you need to purchase life insurance in the future. You’ll be significantly more likely to be accepted for a preferred rate. People who frequently exercise may even receive credits from some businesses, according to Pendell.
Related: Use Policygenius to Compare Quotes from Top-Rated Life Insurance Companies
3. Ignore Unimportant Riders
Numerous life insurance riders that add extra coverage characteristics are available from life insurance carriers. Options can include payment exemptions in the event that you become disabled after purchasing the policy, additional coverage for your spouse, or reimbursement for long-term care expenses.
Even if additional coverage is appealing and offers more security, it might not be pricey enough if you’re seeking for affordable life insurance.
4. Try putting life insurance policies in a ladder
The quantity of coverage you purchase is a key component in determining life insurance costs.You might be able to save money by purchasing a number of smaller policies using the laddering technique as opposed to purchasing a single large policy that meets all of your coverage requirements.
By using life insurance laddering, you can purchase a number of policies with various expiration dates. This can enable you to have more coverage earlier in your life, perhaps when you have young children and a mortgage, when you might need it most. You gradually reduce coverage as policies expire as your need for life insurance decreases.
For instance, you might purchase a universal life insurance policy to pay for ultimate expenses and a term life insurance policy to cover the years until retirement.
Related: Use Policygenius to Compare Quotes from Top-Rated Life Insurance Companies
5. Purchase Life Insurance Subject to Medical Exam
The majority of life insurance policies demand medical evaluation. This typically indicates that a life insurance medical exam is part of the application procedure. There are many different types of plans that don’t require an exam, but they typically cost more for the amount of coverage they provide, like simplified issue life insurance.
“A life insurance carrier will have to charge you a higher rate to cover their risk if they are unable to evaluate your health before issuing you a policy,” says Pendell.
No-exam policies are available from some life insurance companies, but the rates are frequently higher and the maximum coverage amounts can be less than what you want.
If you’re in good health, choosing a medically underwritten policy will help you obtain affordable life insurance.
Compare Prices for Low Costs
The cost of life insurance might vary greatly amongst insurance providers. Before you purchase an insurance, compare several quotes. It’s free and simple to obtain life insurance rates.
Because an initial life insurance quotation is merely a best estimate, be aware that your final life insurance quote may be greater (or cheaper) than your initial quote. The final quotation may alter once the insurer has considered your medical background, prescription drug use, driving history, and other considerations.
Working with a self-employed life insurance agent is a good idea. A qualified agent can rapidly analyze life insurance quotes from many companies and identify the most affordable choice depending on your desired level of coverage, age, way of life, and health.
The idea that life insurance is expensive is a frequent one. According to LIMRA, a research organization supported by the life insurance industry, more than half of survey participants in the 2021 Life Insurance Barometer Study believed that life insurance was three times more expensive than it actually is.
Here are some examples of average costs for 20-year term life insurance for healthy non-smokers, as reported by the most recent Policygenius Life Insurance Life Insurance Price Index:
female 35 years of age:
A $250,000 coverage costs $16.54 per month.
A $500,000 policy costs $25.47 per month.
A $1 million coverage costs $42.75 per month.
Male, 35 years old:
A $250,000 coverage costs $18.78 per month.
A $500,000 policy costs $30.37 per month.
A $1 million coverage costs $51.87 per month.
