How to Get Cheap Term Life Insurance

cheap term life insurance
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    Term life insurance is a product that you may not be thinking about until you buy a home, begin a family or know someone that has passed away. You suddenly realize that your financial future is pretty fragile and you need to protect it. The main concern for most shoppers is to find and buy a cheap term life insurance policy that can provide these protections… and the best way to do this is to compare life insurance companies and policies. Let’s look at how this is done.

    Top 2 Tips to Buying Cheap Term Life Insurance

    Want the short and easy explanation on how to get inexpensive term life? Here it is:

    1. Use an Independent Life Insurance Agent
    2. Compare rates from multiple insurance companies

    Independent Agents

    An independent life insurance agent has access to multiple life insurance companies. They aren’t stuck just selling from a single carrier. Ask your agent if they are independent and how many carriers they use. For example, at Life Insurance Blog- we use over 60 top rated carriers to shop for our clients. Each company is unique and has their advantages and disadvantages. Each shopper is also unique- so we work to find the company that will give you the best deal.

    Compare term life insurance rates

    You can get started right now and instantly compare term life insurance rates here. Compare rates and life insurance companies based on term length and face amounts.

    Shopping Tip: At any given time your quote results can change based on your specific age, health class, tobacco use and lifestyle. That is why the best way to find the cheapest term life insurance rates is to give us a call. We’ll take the time to make sure you get accurate quotes and carriers that meet your specific circumstances.

    Term life insurance is getting cheaper

    Term life life insurance is the cheapest type of life insurance. There are three main reasons why term life is inexpensive:

    1. Funding

    With term life, minimal amounts of cash is required to go towards death benefit funding as a major portion of your term premium calculation is occupied in the payout ratio. What does this mean? The life insurance companies have to account for the predictable mortality costs, however the reality is that the majority of term life policies are outlived by the insured. This is the major reason why life insurance companies can provide you low term life premiums.

    2. Health

    Did you know that you’re healthier now compared to people decades ago? The average person is living longer which means you’ll probably outlive your term policy. This means that companies can lower costs because their risk is lowered.

    3. No Cash Value

    Term is also cheaper compared to permanent life insurance. The main reason for this is that term doesn’t provide cash value like permanent life insurance. Permanent life insurance policies require the carrier to put a portion of your premiums as a reserve for your death benefit.


    3 Keys to Finding Cheap Term Life Insurance

    We went over the top two tips, but there are actually several other ways to find the cheapest term life insurance. They are:

    #1: Buy Now

    Don’t wait when buying term life insurance. By buying now, you can save considerable amounts of money over the life of your policy. Buying term when you’re healthy and young is even more important. When you’re young and healthy you can secure a term life policy at very low rates. This can provide you and your family the financial protection you’re needing.

    #2: Steer clear of riders

    Is your goal to get the cheapest term life insurance policy? Life insurance riders are a way to customize your policy, but they often come at an extra cost. These riders can be beneficial to you depending on your coverage goals, but they do add to the final price of your policy.

    #3: Financial strength

    The most important part of your policy is the ability for it to pay out when you die. That’s the entire point of getting a policy. Buying cheap term life is great, but only if it will pay when you die. Make sure you buy your policy from a life insurance company that is financially strong. Don’t risk buying term life from a company that doesn’t have the best financial reputation. The great news is that there are many highly rated life insurance companies that offer cheap term life insurance. Just make sure they have an A.M. Best rating of “A” or better.

    What factors affect your term life insurance rate?

    One of the most confusing aspects of buying life insurance is the final rate vs the quotes you receive. Quotes are simply a list of rates that are available from all the companies and their product. Your final rate is based on qualifying.

    For example, a shopper with diabetes may receive a “Preferred Best” quote online, but there is no way they are going to qualify for that rate. Your agent should be spending some time asking you questions in order to get you the most accurate rate.

    These are some of the most important factors to get you an accurate quote:

    • Age
    • Gender
    • Height/Weight ratio
    • Tobacco use
    • Current & past health
    • Family history
    • Medications
    • Resident state
    • Lifestyle
    • Occupation

    Online quote like the ones you find on our site are great and accurate. However, you probably won’t know how you’ll qualify from each company. Every company looks at you differently and that’s where your agent proves their worth. One company may qualify you at a more expensive rate compared to another.

    How much term life insurance should I buy?

    Each shopper is unique, but in general you can shop rates by taking your annual income and multiplying it by 10. If you make $75,000 per year, you’ll want to start shopping for a $750000 term policy. This is a basic generalization and your situation may require more or less coverage.

    Tips: Make sure to calculate some basics. You’ll want to calculate all of your debts such as:

    • Mortgage
    • Credit Card Debts
    • Student Loans
    • Future Salary
    • Children’s Education

    Getting Cheap Term Life Insurance- Final thoughts

    Term life insurance is the cheapest life insurance policy available to most shoppers. It gets cheaper every year, but there are still some great ways to lower the cost even more. Before you apply make sure you do the following:

    Make sure you stop smoking cigarettes as they can double your life insurance costs. If you smoke, get covered now- but have your agent shop your case once you’ve quit for 12 months. Your agent can then reapply and lower your rate in half!

    Lowering your weight is another great way to lower your premium. During the life insurance medical exam, your height and weight will be measured. The lower your weight the better.

    We hope that this guide has helped you understand how to shop for the cheapest term life insurance. Please reach out to us if you have any questions about getting cheap term life insurance. 

    Michael Quinn

    Michael Quinn

    Michael is a licensed life insurance agent, expert & owner of Life Insurance Blog. LIB has helped thousands of shoppers understand life insurance and secure affordable coverage.

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