Searching for Inexpensive Life Insurance
In order to find inexpensive life insurance, it’s important to understand the various types of life insurance available. On top of that, some knowledge of the things that individuals can do to lower the cost of life insurance also would help with the end goal of buying inexpensive life insurance.
Types of Inexpensive Life Insurance
Some research of the insurance field will quickly reveal that the most inexpensive life insurance is term insurance. Term is one of two main types of life insurance; the other is permanent life insurance. Term offers the cheapest premiums because the insurance is designed to offer protection for a period of time. Permanent insurance, on the other hand, offers a guaranteed benefit for as long as a policyholder lives. There are several types of permanent insurance, which also includes an investment aspect to policies, and the least expensive permanent insurance is usually several terms more expensive than term insurance. One of the advantages of term insurance is that it offers relatively large death benefits for inexpensive premiums, and the younger you are the less you’ll pay for term insurance.
How to Get Inexpensive Term Life Insurance
Now that you’ve determined that term insurance is the least expensive choice among the main types of life insurance, the next question is how to make sure the term insurance you purchase is as inexpensive as possible.
- Buy only the insurance you need. Take some time to consider your situation to be sure you don’t go for a larger death benefit than you need or a longer term than is necessary. If the insurance is designed to make sure money will be available for a child to go to college, you might consider a 5- or 10-year term at a level that will pay for undergraduate and graduate school, for example. If you want to pass along wealth to your family members, you may be interested in the longest available term for $1 million or more.
- Consider your own health. The majority of life insurance policies request information on your medical history and a physical exam. If you’re smoker, but you want inexpensive life insurance, then you should quit. If you are overweight, you should try to lose weight before purchasing insurance.
- Compare insurance quotes. There’s no way to know which insurance company offers a truly inexpensive life insurance policy unless you get quotes from a number of companies and compare the results. Make sure that all the quotes are for the exact same coverage and don’t include any surprise charges or fees.