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While the cost of life insurance will depend on your life circumstances, there are ways to make sure you get the best deal on your coverage!
With the rising costs of just about everything these days, many people are searching for ways to secure inexpensive life insurance coverage. Life insurance is important for any individual who has people who are dependent on their income or has outstanding debts. In the event of your death, your insurance policy provides financial security for your family members after you’re gone. The money paid out by the insurance company goes to your family members or to pay off your outstanding debts. Often, life insurance helps supplement your lost income and can help pay for expenses like childcare, your mortgage, or even your funeral expenses.
Because the payout from a life insurance policy is so important to protect your family members after you’re gone, getting coverage is highly recommended. That’s why today we’re going to be showing you how you can secure the right amount of coverage at the right price. Keep reading to learn about the different strategies you can use to get a life insurance policy without putting a major strain on your wallet.
What is Term Life Insurance?
Searching for the most affordable coverage possible? Then you should take a look at a term life insurance policy
There are a few common types of life insurance that you will run into as you explore different providers. You will probably encounter term life insurance, whole life insurance, universal life insurance, and variable life insurance. For the sake of finding the least expensive policies, we’re going to be focusing on finding cheap term life insurance coverage that works with your budget.
Term life insurance is a type of life insurance that is only active during the designated term. For example most term life insurance policies come with anywhere from 20 to 40 year terms. During the term, your policy is active and your family will receive a payout in the event of your death. Should you outlive the duration of your policy, then your coverage expires at the end of the term. For most people, the duration of their policy is long enough to save money, raise children, or pay off debts to the point where a payout is no longer needed. The reason that insurance companies are able to offer cheap term life insurance coverage is because the payout is not guaranteed. If the insurance provider does not guarantee a payout, there is less financial risk on their part. Since term life insurance policies present less risk, they are offered at a more affordable price for many people.
Now that we know about term life insurance, let’s find out how you can secure an affordable monthly premium!
1. Start Your Search ASAP
If you’re looking for a cheap term life insurance policy, the best time to look for coverage is right now
If you are wondering when the best time is to purchase a life insurance policy, the answer is right now. With all types of insurance policies, the older you are the more you will have to pay for coverage. When you apply for a life insurance policy, your application undergoes a process called underwriting. The underwriting process involves assessing your age, health, and a whole array of other life factors—some of which we’ll explore later. During this process, you will be placed into a risk class based on your application. The older you are, the higher your risk to the insurance company.
That’s why it is so important to begin searching for inexpensive term life insurance policies while you’re young. If you are young and healthy, there is a good chance that you will be able to get a rate that won’t put excess strain on your budget.
2. Decide on a Term and Coverage Amount
Before you can find the best possible rate for insurance coverage, you need to determine how much coverage your loved ones need
When you are searching for a term life insurance policy, you need to have a range of terms and coverage amounts in mind. If you are applying to different companies, policy types, and coverage amounts, the process can quickly become overly complicated. So, when you start your search it is important to know exactly what you are looking for.
This is also an opportunity to review your own finances and determine how much coverage you can afford. Depending on your income, your savings, and your debts, you may need to look for lower coverage amounts than you initially expected. If you do need to adjust the amount of coverage you need or your term duration, don’t give up on getting insurance! Having some coverage to protect your loved ones is always better than going without life insurance. Additionally—depending on your insurer—you may be able to increase your coverage amount in the future.
3. Take a Medical Exam
The more information you provide about your health, the better chance you have of securing a low monthly premium
As a part of many life insurance applications, you are required to undergo a short medical exam. During this medical exam, you’ll undergo a basic physical, a series of blood tests, and a urine test so that the insurance company can assess your health status as a part of the underwriting process. While there are sometimes options to skip the medical exam, your coverage will increase in price. For the sake of finding coverage that works within your budget, it is in your best interest to take the medical exam. Generally, the exam takes about 45 minutes and has flexible scheduling options. Though this is a bit of a hassle—and it can sometimes take up to 6 weeks to get the results of your exam—it is ultimately worthwhile to undergo the medical exam to get an affordable monthly premium.
4. Explore Different Providers Before Making Your Final Decision
Not all insurance companies are alike! Make sure you are choosing a provider that gets you the best coverage within your budget
If you are trying to save money at the grocery store, you look around and compare different brands to see which offers the best value. The same is true when shopping for term life insurance! When you start your search, you don’t want to go with the first search result or purchase coverage on name recognition alone. To get the best price for coverage, you should compare quotes from different companies to determine your best value. These days, it is easier than ever to get an instant quote from insurance company websites. Just by filling in your basic information, they can provide you with a free quote. After you have your quotes, list them out to see which company is offering the best value based on your age, health status, and financial history. Then, once you have made your decision, you can start filling out an application.
5. Ask About Discounts
Some insurance companies offer discounts if you are able to pay yearly
Once you have chosen your insurance provider, there is still another money saving step you can take to get coverage at the best price. In some instances, insurance providers will give discounts to customers that can pay their yearly premium upfront. If you have the cash on hand, this is a great way to save some extra money on life insurance. Should you opt to pay monthly, then your premium will remain unchanged.
We hope you got some useful tips for how to get life insurance coverage on a budget. As we previously mentioned, having some life insurance coverage is always better than going without insurance. Life can be unpredictable, so you want to make sure your loved ones are protected no matter what. It is also important to remember that the best time to get insured is right now. Don’t put off getting coverage, make sure your family’s future is secure today.
