You already know how much it cost you and your family to get a life insurance policy. We will be discussing how to get cheap life insurance policies.
Depending on how much coverage you have it could be a negligible amount each month, or it could be more expensive.
If it’s the latter, then you are probably searching for the best ways to cut costs and still maintain coverage.
There are things you should know and even some actions to partake in if you are searching for cheap life insurance.
Life insurance can sound complicated, but you might even be surprised to find out how affordable life insurance can be — especially if you are purchasing it while you are young and healthy.
For example, let us look at a 20-year, $500,000 term life policy. A 30-year-old could lock in a monthly premium to match the price of a movie ticket.
Many of the factors that go into your life insurance premium are always out of your own control, such as your age and health at the time of your purchase.
It all comes down to the type and amount of coverage you’re willing to buy. But there are steps you can take to lower your premium and also get the most affordable life insurance.
How to get affordable life insurance
Firstly, Make sure to keep these items in mind when searching for life insurance policies so that you can be able to obtain the cheapest rate possible.
This one is an obvious fact but many people do not want to take advantage early enough. The younger you are, the safer a bargain you are to insurance companies.
So you will also pay a lot less than you would if you were older. Life insurance only grows more expensive as you age. If you want cheap life insurance then start paying now – not later.
Comparison shop among companies
Explore life insurance lenders and see what they are willing to offer you.
Some will provide way more coverage than others. Others may cost more (or less).
Don’t take the first deal you get until you’ve compared it to other life insurance plans and policies.
Complete a thorough process
As “Simplified” as life insurance may sound to you – and actually, turn out to be – easy. After all, no medical exam is needed to obtain it.
But you won’t get cheaper life insurance by going this route. Do not pay more for less. Complete the traditional life insurance vetting procedures.
This also doubly applies to younger, healthier people, who will typically qualify for the best rates anyway.
Get term life insurance (not whole)
Both term life insurance and whole life insurance have unique benefits
Term life insurance is very cheap because it has a pre-determined expiration date. Unlike the whole, it does not have a savings element that should make it attractive.
Still, you get what you pay for so fewer benefits will lead to cheaper life insurance.
Term life insurance is the simplest and cheapest type of policy you can ever get, and it is very sufficient for most people. It lasts a certain number of years.
And it’s also designed to cover you while having financial dependents or obligations, like paying off a mortgage and raising children.
If you die during the agreed term, your life insurance beneficiaries will now receive a payout and can use the money however they wish.
In comparison, permanent life insurance is significantly more expensive. Because permanent policies, such as whole life insurance, offer lifelong coverage and have an investment component.
If you are in the market for a permanent policy, universal life insurance or variable life insurance offers more flexibility with payments.
These policies allow you to adjust your premiums, which can come in handy if your income fluctuates.
Opt to take the medical exam
If you are healthy, it’s worth picking a nice policy that requires a life insurance medical exam.
This exam is very similar to a physical, and you can also schedule an appointment at a time and place that is very convenient for you.
A technician will ask you about your medical history, test you for nicotine, and record metrics and data like your blood pressure, cholesterol, and glucose levels.
The insurer then uses this information to set the premiums. Without these details, the insurer has to take on more risk.
For that reason, life insurance that doesn’t need you to take a medical exam is more expensive.
Buy a policy as soon as you need it
Life insurance companies reserve their best rates and premiums for young and healthy applicants, so it’s a good idea to buy coverage as early as possible.
As you age older, the risk of running into health issues goes up, and your life expectancy goes down.
With most types of life insurance, we have, your insurance premiums are locked in for the life of the policy — even if your health deteriorates.
So if you are searching for affordable life insurance, the sooner you apply, the better.
Try to quit smoking
Using tobacco and nicotine products is always linked to a host of health issues, such as cancer, respiratory disease, and diabetes.
Smoking is the leading cause of preventable death in the U.S., according to the American Lung Association
Because of this huge risk, smokers always pay more for life insurance
Well Depending on the insurer, you will be considered as a smoker if you use cigarettes, vaping devices, cigars, pipes, chewing tobacco, and nicotine patches or gum.
To qualify for nonsmoking rates, you typically need to prove you’ve been smoke-free for at least 12 months.
If you are in the process of quitting but need life insurance now, please do consider buying a short-term life insurance policy and later apply for a traditional term life insurance policy once you’re clean.
Ask about discounts for paying your premium annually
With most companies, you can have the option to pay your insurance premiums monthly, quarterly, semiannually, and also annually.
But some insurers raise rates for the insured who choose frequent payments, a certain practice known as the “fractional premiums.”
If you can afford the higher upfront payment, you could save up to 5% by paying your premium once or twice a year.