Looking for Cheap Life Insurance?
Most people assume that cheap life insurance doesn't exist. They think that it's is one of those things that only rich families with money to burn invest in.
Fortunately, that's not the case. Just about anyone can get affordable life insurance quickly and easily with enough legwork and know how. And although it may be a monthly expense that's hard to fit into your budget, it pays for itself with the peace of mind you get from protecting your loved ones from financial ruin in the unlikely event of your death. But before you invest in a policy — or even start comparing rates or trying to find the best life insurance policy for you– it's important to understand the basics.
How It Works
Life insurance is there to provide for your family in case you pass away. This is especially important for those of you that provide the home's only paycheck. If that suddenly disappeared how would your family make ends meet without a policy to protect them? In most cases, it would be a struggle.
Even if you're not the sole provider for your family, you still may want to consider cheap life insurance. Why? Because funeral expenses are much higher than most people expect. Although this is the last thing your family would worry about if you passed on, it's an important consideration as the FTC reports that funerals can cost upwards of $10,000. This includes funeral expenses like caskets, burial plots and the service itself.
If you're like most hard working, middle class families you probably don't have $10,000 lying around to spend on anything. However, a funeral is a necessary expense when someone passes away. Many families report that it is nice to have a life insurance policy foot the bill so that you can properly grieve and worry about financial issues later on.
There's also the fact that a policy helps you sleep a bit easier knowing that your family will be taken care of — albeit temporarily — in case of your unexpected death. This is obviously something you can't put a price tag on, but most policy holders understand how priceless this feeling is.
How to Find Cheap Life Insurance
Now that we've established the importance of getting a cheap life insurance policy, here are some techniques you can use to save money during your search.
Understand the Lingo :
Like any industry, life insurance has it's own set of jargon and industry-specific terms to be aware of. The most important two to learn right off the bat are "term" and "whole". Term life insurance is what pops into most people's minds when they think about insurance in general: you sign up for a policy that covers you over a certain period of time.
The time period in this case is the "term", which is usually 20-years or more.According to USA.gov
, whole life insurance is significantly more complex. This type of life insurance ties together a traditional term policy with an investment, typically bonds and securities (for those that are curious, the term "whole" comes from the fact that it's an all-in-one investment and insurance package). For those on a budget, term is usually the best option as it's much cheaper than whole.However, it does help to learn about the various types of cheap whole life insurance (there are several) in case you do want to make an investment and insure yourself at the same time before making your decision. Once you've decided on your insurance type it's time to go shopping.
Comparison Shop :
Prices between policies — even those with similar coverage — can be tremendously different. The Texas Department of Insurance
recommends getting several quotes during your search. One of the most common mistakes people make when looking for cheap life insurance quotes is not doing due diligence with their comparison shopping. In the same way that you'd probably go to a number of car dealerships when buying a car, you shouldn't be afraid to work the different companies to find the absolute rock bottom rate within your budget.
One other thing to keep in mind is that this type of insurance is usually paid monthly, which makes minor differences between insurers really add up over-time.
For example, let's say that you find two policies: Policy A and Policy B. Policy A costs $15 per month and Policy B costs $20. You may say to yourself, "well that's only a $5 difference and I'm already talking to the sales rep for policy B. I should probably just go for it. I have more important things to do than worry about $5."
However, if you take that $5 per month over the course of a typical policy (which can be 40 years or more), it amounts to a difference of $2,400. That's a lot of cash! It may be more work initially but it definitely pays to shop around.
Know Your Policy :
While price is obviously what you're most interested in, no policy is worth a dime unless it covers you thoroughly. Talk with your insurance agent to understand what situations you'll be covered under –and which ones you won't. This is especially important if you're in a high-risk profession like construction or fire safety.
Cheap Life Insurance for Seniors
Despite advanced age and an AARP membership, most seniors are eligible for a reasonably priced life insurance policy. Obviously, the cost of your policy will be significantly higher than someone that's in their early 20′s. That being said, with life expectancy on the rise, many older folks entering their 8th decade can get a policy without much hassle.
However, anyone over the age of 55 will be under increased scrutiny regarding their physical health. Preexisting conditions — such as diabetes and heart disease — significantly increase the risk of early death. That's why life insurance premiums can get quite high for those with sub par health.
Finally, there's the issue of no exam life insurance. Obviously, the decision to undergo a medical exam for the sake of insurance is only a decision you can make. But it's also something that you need to take seriously if you want to get the lowest premiums possible. This is especially true for senior citizens.
Even if you're overweight and smoke regularly, it may still save you money to go for a medical exam. In fact, you can test this yourself in advance. What you do is get in touch with a number of insurance companies and ask them their rates for no exam insurance. Write those down and keep them somewhere you can access the information later. Then schedule an appointment with your doctor and get a medical exam. Once you have your paperwork, call the same insurance companies and ask them for their best rate considering your current health status. If the rate they give you is lower, then you should probably avoid no exam life insurance.
If you're at high-risk and want to learn more about finding a policy, you may find this guide from the University of Kentucky
Now is the time to get out there are finding a cheap life insurance policy that fits the needs of you and your family.
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