During these uncertain times, many people are seeking ways to save money. Perhaps one area where you’d like to save money is life insurance policy. If that’s the case, the good news is that there are several options for finding low-cost life insurance. (Or to save money on existing coverage.)
Before we get into our best affordable life insurance suggestions, keep in mind that it’s never a smart idea to go without a life insurance policy. If you and your wages were to disappear, this could place your loved ones in a difficult situation.
1. At the very least, start with low-cost term life insurance
Term and permanent life insurance are the two basic types of life insurance. Both provide a death benefit if you die during the coverage period, but only permanent life has a cash value. Term life insurance is the most affordable option. Term life insurance is a wonderful choice for folks who want the most coverage for the least money. People also choose for a mix of the two to ensure that they have a big quantity of coverage now (when they have children or debt) and everlasting coverage later.
2. When you’re young and healthy, buy Insurance
When you’re young and healthy, the most economical life insurance policy is usually accessible. You may be able to lock in a low life insurance quote if you buy early. Furthermore, you won’t have to worry about being unable to obtain coverage in the future if you develop a health condition.
3. Obtain quotes from a number of different insurance companies
When it comes to finding affordable life insurance, like anything else in life, it pays to shop around. An agent or advisor can obtain quotations from a number of different insurers. He or she can also assist you in comparing coverage to ensure that you acquire a good policy at a good price.
4. Examine your employer’s group insurance options
Employer-sponsored group life insurance policy is usually subsidised in part. Furthermore, you can often obtain a certain amount of coverage without having to undergo a medical examination. You should definitely look into any group coverage offered by your company. Just keep in mind that this coverage expires if your work does, so it’s a good idea to obtain your own life insurance policy.
5. Inquire about special premium discounts
At specific levels of coverage, several insurers give savings on premiums. So, for example, buying $250,000 of coverage might be less expensive than buying $200,000 of coverage. Inquire about possible premium discounts with your insurance agent or counsellor.
6. Check to see whether you can save money by paying in advance
If you pay the entire year’s premium in one go, some insurers will give you a discount (or in less frequent intervals like twice a year). If your insurance company offers this discount and you have the funds, pay your payment in whole rather than quarterly or monthly.
7. Ensure that your contract will be renewed
You can automatically renew your term life policy without having to have a medical test if you have a renewal guarantee. You only pay more as you become older, not as your health deteriorates. This allows you to keep your low-cost term life insurance even if your health deteriorates.
8. Maintain (or strive to achieve) good health
People in good health are more likely to find the most economical life insurance. While there are certain circumstances over which you have no control, there are others over which you do. These include maintaining a healthy weight by eating well and exercising, minimising alcohol use, managing stress, and not smoking or taking drugs. If your health improves, ask your insurer if you may retake your medical exam; you’ll often get a lower rate for the remainder of your policy’s term.
9. If you have health difficulties and/or have been denied coverage, work with a qualified insurance professional
If you don’t have any health problems, it’s a good idea to get a medical checkup for a life insurance policy. You’ll be able to receive the greatest economical life insurance by demonstrating that you’re in good health. However, if you’re in poor health or have been denied life insurance, you have options. Working with an insurance professional who specialises in higher-risk individuals is one option. Another option is to look into “simple issue” or “guaranteed issue” life insurance. It allows you to avoid the standard medical exam and acquire life insurance almost immediately. Learn more about these possibilities and what to do if your life insurance application is denied.
10. Begin with a small area and gradually expand your coverage
Something is always preferable to nothing when it comes to life insurance. Start small if you can’t afford all of the coverage you require right now. A healthy 30-year-old can buy a $250,000 20-year level term policy for just $13 per month. If you died between the ages of 30 and 50, your loved ones would receive $250,000 with even this low-cost life insurance policy. (And they’d get the entire $250,000 because life insurance proceeds are almost always tax-free.) You can buy extra coverage as your savings and income rise over time, until you reach the level you desire.
Working with a professional insurance agent or advisor is the greatest way to learn about all of the affordable life insurance policy options available. There’s no time like the present. So use our Agent Locator to discover an insurance expert in your neighborhood right now.