Cheap Life Insurance: Ways to Save on Term Life Insurance
If you’ve been avoiding getting life insurance because of the cost, take heart: There are things you can do to get bring the price down.
1. Opt for term life insurance
Term policies, as opposed to permanent policies, are usually substantially less expensive. With term, you purchase a policy to cover a particular amount of time, usually 10, 15, 20 or 30 years, with a fixed death benefit. Premiums for term coverage often stay steady and won’t go up over time. The death benefit can help a beneficiary pay off debt, like a mortgage.
2. Don’t renew a short-term policy over and over.
Each time you re-up your term life insurance, the premiums increase. To avoid this, get a single, longer term policy is more cost effective. For example, a single $300,000 policy will be cheaper than two separate $150,000 policies, one after the other.
3. Purchase while you’re younger.
The older you get, the costlier coverage is. Start younger and your premiums will not only cheaper but also locked in at that rate.
4. Avoid a no-medical-exam policy if you can.
Some companies offer guaranteed issue policies for which you don’t have to take a medical exam. Buyer beware, because these kinds of policies are much more expensive. If you are healthy or have only a few medical issues, take a medical exam and you’ll get lower premiums.
5. Compare life insurance quotes before you buy.
Get several life insurance quotes before purchasing. Use our quote comparison tool and get quotes from insurance companies that cover the same things but at differing prices.