I understand how daunting and confusing it can be to shop for affordable life insurance coverage. Premium costs can really vary between insurance companies, even when the death benefit, terms, and features are similar.
As someone interested in protecting my family’s financial future in case of tragedy while also sticking to a budget, I’ve learned several tried and true strategies for minimizing expenses on life insurance without compromising on coverage.
In this blog post, I’ll share 5 of my best tips for finding cheap life insurance so you can save the most money possible on premiums while still getting comprehensive protection.
Tip 1: Choose Term Life Insurance
The first decision that sets the foundation for affordable rates is selecting term life insurance over permanent life insurance.
Term life insurance provides pure protection for a set period of time – typically 10 to 30 years – and gives you the highest death benefit per premium dollar spent compared to permanent coverage. It covers needs like:
✓ Funding children’s college education
✓ Paying a mortgage
✓ Covering lost income
Once your temporary but crucial financial obligations decrease, so can the level of coverage. The fact that term life only pays out if you pass away during the term is what makes it so much more affordable.
Tip 2: Compare Quotes from Multiple Insurers
Here’s an inside tip from my own shopping experience…
Getting life insurance quotes from just one or two companies isn’t enough to find rock-bottom prices on coverage.
I applied with several top-rated life insurance providers so I could compare options. Despite having identical details like age, health background, and requested policy limits on each application, the premiums quoted varied by over $60 per month between insurers!
I saved a bundle by being patient, submitting multiplerequests, and choosing the cheapest suitable term life quote with adequate coverage limits from a financially sound insurance company.
So forget sticking with the name brand companies you see the most flashy advertising from online and on television. Look past the brand recognition and get quotes from multiple insurance companies to discover the best value coverage.
Tip 3: Boost Your Health
Life insurance companies take your current health and family medical history into account when pricing your premium costs.
Simply put, the healthier your lifestyle and vitals are, the cheaper your coverage.
Here are a few easy ways to cut costs by boosting wellness:
- Maintain a healthy weight for your height
- Exercise aerobically several times per week
- Avoid harmful habits like smoking or using nicotine
- Reduce alcohol consumption
- Have regular checkups with good results
- Lower bad cholesterol and blood pressure
Making sensible improvements to diet, exercise, substance use, and medical care pays off both in overall wellness AND potential savings of hundreds of dollars annually on policy premiums!
Tip 4: Adjust Coverage Term Length
Deciding how many years to lock in your policy for also influences the monthly or yearly payment amounts.
Though everyone’s financial needs differ, opting for longer coverage lengths is often cheaper on a year-over-year basis. Why?
Because the insurance company earns interest on your premium money over that extended commitment period, they gain the ability to offer more discounted rates.
For example, say you qualify for these equivalent 30-year and 20-year $500K term life policies:
- 30-year policy: $47 per month
- 20-year policy: $68 per month
Over the full term, the total paid on the 30-year policy is $16,920 vs $16,320 for the 20-year policy.
You lock in over a decade more of coverage at a cheaper overall price by initially committing to the longer term.
Evaluate your budget and predicted needs to find your optimal balance of term length, savings, and protection.
Tip 5: Review and Update Your Policy
My final tip? Set reminders to regularly review your life insurance coverage to take advantage of savings opportunities.
Trigger points to reassess your policy include:
- End of initial rate lock period
- Major life events (marriage, new home, kids)
- Renewals for term life policies
- Changes in health or lifestyle
Perhaps you just ran a marathon and dropped 15 pounds. Fantastic! Inform your provider to insist on paying the lower premium your new health stats qualify you for.
Or as the expiration date approaches on a term policy, shop quotes to find cheaper renewal options. I saved over $40/month doing exactly that!
Stay alert to chances to ask for reduced payments or switch providers when cheaper comparable coverage pops up. Don’t let your policy get stale.
Start Saving on Your Life Insurance Premiums
I hope these 5 tips for finding cheap life insurance like choosing term coverage, comparing quotes across insurers, upping health habits, optimizing term length, and reviewing policies give you a blueprint for maximizing savings.
Remember—comparing rates and policies takes a little effort on the front end, but saves you big money year after year. Spend the time to set yourself up for long-term savings while securing coverage for your loved ones.
The extra dollars in your pocket will be well worth it! Good luck finding affordable rates on the cheap life insurance coverage you deserve.