How To Get A Cheap Life Insurance Policy In 2018

Finding a cheap life insurance policy begins with a game plan. Being organized and knowledgeable about what life insurance companies are looking for will pay off in the end. Here are the top 3 tips we offer you as we share our experience as to how to achieve your goals.

  1. Getting your policy at a younger age
  2. Maintain a healthy weight and lifestyle (don’t smoke)!
  3. Comparison shopping is key

There are some other key factors we will cover here that will affect the price you pay for that policy. But first, consider why you need life insurance. Though many people think of life insurance as a reminder of our mortality, it could be one of the most important investments you will make for the future of the people who depend on you financially. Don’t equate it to death, but rather to the life you will give your loved ones if you’re not around to take care of them. Instead of leaving them with debt and insecurity, a term life insurance policy will help them pay off the mortgage, cover college tuition, and pay off credit card debt in your absence. So, let’s get into the nitty-gritty of why you need term life insurance and what your goals are with that policy.

Purposes for Your Policy

Figuring out how much insurance you need, and for how long is critical in helping you buy an affordable policy that will cover your family’s future financial needs. Are you a young parent with a new mortgage, middle-aged with adult children, or a business owner with partners? Your life stage will determine your insurance needs. Here are some common uses or debt that life insurance proceeds can pay off.

  • Paying off a mortgage. If you still owe the majority of a 30-year mortgage you will need enough life insurance to cover that debt for those remaining years. If that balance adds up to $200,000, then, at a minimum, you should purchase a policy in that amount. The coverage should be at least a 20-year term life insurance policy.
  • Covering your children through adulthood. As parents know all too well, childcare costs are higher than ever. Providing for your kids is a major factor in how much life insurance coverage you will need so calculate the annual cost of caring for your children and multiply that amount by the number of years remaining until your youngest child reaches adulthood.
  • Financing your children’s college education. The cost of college tuition is another skyrocketing expense in America so do the math on what that higher education will cost per child without counting on your income, in order to arrive at an insurance policy amount.
  • Funding a business partner’s buy-out of your share of the business upon your death. A life insurance policy death benefit can make all the difference in a business continuation plan for your partners to obtain the capital needed to buy out your share and run that business in your absence. That term life insurance policy will serve a dual purpose— to cover your business partners’ financial needs and assure that your heirs are paid off.
  • Life Insurance proceeds are income tax-free. While a term life policy may not be the ideal tool for estate tax planning, as an interim measure its affordability makes it attractive. Plus, the conversion feature in many policies offers the option of converting that term life policy into a permanent plan that offers cash value dollars. Purchasing a term life policy with conversion options is a plus because it protects the policyholder’s insurability and offers that investment potential when you can afford it at a later date.

If you need life insurance to cover one or more of the aforementioned reasons you need to do some multiplying to figure out the total amount you need and for how long. A rule of thumb is that the younger you are, the longer the coverage length you need—a 20 or 30-year term life policy. The good news is that youth is on your side when it comes to paying the lowest rates for more years of coverage. An older person may only need a 10-year policy, which will help keep cost down for unnecessary years of coverage you will likely not need.

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Term Life Rates Are Cheaper Than Ever

Speaking of keeping cost down, many people mistakenly think that buying life insurance will be expensive. The fact is that the price of term life insurance has steadily decreased in the last couple of decades because people are living longer, healthier lives. Women have benefitted the most from this longevity since they generally outlive men. Life insurance quotes for women are lower than ever. Judge for yourself when you request life insurance quotes to shop for the best rates in the industry. You will be surprised to find affordable options for people of all ages. Your current health and lifestyle will play a role but there are many ways to fit your needs by adjusting the amount of coverage or length of time for that policy you seek.  Our goal is to educate you on the key points of what it takes to get the cheapest term life insurance policy on the market. And it begins with something we all like to do… shop around.

One Insurance Carrier is Not Enough

Don’t get stuck with one insurance company and their so-called “captive” agents. It could be that the agent has been recommended by a friend or family member and may be competent but be aware that he/she is essentially an employee of that insurance carrier and will only sell you a policy from that company. That will not be in your best interest because you won’t be able to compare different rates and policies from a variety of companies that could be more beneficial to your particular circumstances. For instance, when you get a list of several life insurance quotes from different companies, you can compare their rates side by side, and with the help of a knowledgeable agent you might find that one company is more lenient than another for an overweight applicant or for a prospective policyholder with certain chronic health conditions.

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It Pays To Shop Online for Cheap Term Life Insurance

There are carriers for everyone, catering to all types of different health and lifestyle issues. These companies have distinct guidelines and rating systems to determine your premiums. These life insurance rates are determined by weight/height tables, ages, and the amount and length of coverage requested. So, variety is the spice of life when it comes to comparing as many quotes as possible from different carriers in your search for the cheapest term life policy. That’s where an independent, unbiased agent with years of experience knowing what insurance underwriters look for will be invaluable. Those licensed, knowledgeable agents are the only ones we work with.

Affordable Life Insurance is at your fingertips… Call to Speak to a Licensed Agent.

It all begins with our Smart System™ to help you calculate those life insurance quotes in a matter of minutes. Our search engine will scour dozens of nationwide insurance carriers we represent to help you select the best.

Put Yourself Under A Microscope

Most life insurance applications will have extensive questions about your health, your lifestyle, whether or not you smoke, and even your parent’s health history as a way to determine the kind of risk you pose to the insurance company. Honesty is a virtue when it comes to answering those questions truthfully. Don’t hide anything because company underwriters will likely find it in your medical records and background checks. If you have been to a doctor and have been diagnosed with high blood pressure, elevated cholesterol levels, or other chronic health conditions, disclose it because it will be discovered. The same goes for a poor driving record, a DUI, or bankruptcy. Do your own introspection and come clean. Lying on an insurance application is considered fraud and the carrier can decline coverage or increase your premium rate after the condition is discovered, or at worse, nullify a claim in the future if they consider the insurance was obtained fraudulently.

Here are key areas companies will investigate when you apply for life insurance:

  • Your Genetics: Believe it or not, whether or not your parents are alive and healthy will determine how much you will pay for your life insurance. The reason is that insurance companies want to know whether your genetics will help or hurt you in your longevity. They are interested in the health past of your parents, your siblings, and that of any direct family members. Did they suffer from chronic health conditions, or die as a result of those issues? These are critical questions in determining your health risks and could result in higher policy rates for you.
  • Your profession: Did you know that government studies show that the riskiest profession in America is tree logging? Farmers, truck drivers, roofers, commercial fishermen, and private aircraft pilots also rank up there. The insurance companies know this and will charge a higher premium to insure people with those occupations. But a knowledgeable insurance agent/broker will help you find the companies with the most beneficial guidelines for you to apply.
  • Chronic Health Conditions: Your own health issues, such as hypertension (high blood pressure), high cholesterol, heart disease, diabetes, or other so-called ‘health risks,’ matter a great deal to insurers. I cannot stress enough that you must disclose these because there are medical records out there that insurers will find. If you’ve been treated for these conditions, there is a documented record that will come out under the scrutiny of underwriters.
  • Your weight: Where you fall on the Body Mass Index (BMI) tables will determine your rate class and thus, your policy premium. The paramedical examiner who will conduct your exam will weigh you so you can’t use wishful thinking on your application.
  • Your hobbies: If you are a recreational ocean diver, skydiver, or like to have fun with potentially hazardous hobbies, you need to disclose it. It might depend on the frequency with which you partake in these activities but it could be a factor in charging you higher insurance premiums.
  • Lifestyle: Smoking cigarettes, chewing tobacco, and excessive alcohol consumption, and drug use will spike your insurance rates. If you have these habits but quit at a certain time before applying for insurance, your wallet will feel it. Smokers often pay double for insurance than non-smokers but again, being honest with your broker/agent is key so they can steer you toward companies that are more lenient on smokers rates.
  • Your driving record: Insurance companies reward the healthiest, most responsible applicants with the lowest rates. So, a blemished driving record with a history of moving violations does not live up to that image. If you have a DUI in your record it will be found in police databases. Depending on whether it’s one violation or numerous will determine how much more you will pay for insurance if you are insurable at all.
  • Your Credit History: Yes, your credit rating matters for more than qualifying for a mortgage or a loan. A strong financial record indicates to insurance carriers that you are a fiscally responsible person who will pay their debt on time… and that includes your insurance premiums.

Given what you have learned, how do you think you rate so far? Are you a good risk or a poor risk for the cheapest term life insurance rates? A good way to start figuring out is by getting a basic term life insurance quote as a baseline of what you might be rated. You have nothing to lose by requesting a quote now to get the ball rolling. You might be surprised how low those basic rates are.

Get Your Term Policy as Soon as Possible

Like we said before, youth is on your side when buying a term life policy. The younger and healthier you are, the lower your premium rates will be. We often hear from applicants that they don’t think they can afford life insurance because they have a tight budget. You might not realize that the fact that you are younger will work in your favor and might cost you very little. For example, a 37-year old male will pay about $15 per month for a $250,000, 20-year term life policy. Waiting another 5-years to get that same policy and risking suffering from a health issue, may throw you out of the cheapest rate class.

It Pays to Shop Around

It’s a pretty good bet that you do comparison shopping when it comes to buying a car, a flat-screen TV, or even which smartphone you want. Why not do the same to buy life insurance that is going to last you for 20-years? There are many online brokers out there offering instant term life insurance quotes, so be sure they are reliable, trustworthy, and won’t sell your personal information to other companies. We don't do that. When you fill out a term life quote with us, one of our licensed agents will reach out to you personally, in your preferred method of contact. Want to speak to them on the phone, or do it all via email? It’s your choice. The same goes for the medical exam you will take if you choose a fully underwritten policy, instead of a non-medical exam policy. You can have the paramedical examiner come to your home or office to conduct that exam, which usually takes about one hour.

Checking out the insurance company you choose for your policy

Insurance carriers are rated on financial strength and ability to pay policyholder claims. The best are rated “A” or better and are the only companies we represent. We encourage you to check out your company’s rating on the most well-known ratings agency A.M. Best. You might think that those superstar companies will be the most expensive but it is completely the opposite. Those household names have excellent financial viability and strength and can afford to give you the cheapest life insurance policy in the industry.

Affordable or Cheap

Want to get a sneak peek of how affordable term life insurance can be for someone your approximate age? Check out this table to see where you might fall on the list.

Sample Rates For Males (10 Year Term Period)

Age $250,000 $500,000 $1,000,000 $2,000,000
30 $9.46 $13.76 $20.68 $37.41
40 $11.61 $18.06 $28.71 $51.18
50 $23.65 $40.62 $71.07 $135.57

*Please note that these rates for Preferred Plus rating class and are subject to change.

Sample Rates For Females (10 Year Term Period)

Age $250,000 $500,000 $1,000,000 $2,000,000
30 $8.60 $12.04 $18.04 $31.49
40 $10.75 $16.34 $25.28 $45.81
50 $20.43 $33.82 $58.77 $110.97

*Please note that these rates for Preferred Plus rating class and are subject to change.

A Good Life Insurance Broker Is Key

There are so many online life insurance brokers claiming to sell you cheap term life insurance that it can seem almost too good to be true. Who can you trust on such a personal purchase in your life? Some claim that they will find you cheaper rates on their site. That is simply not true. The life insurance companies, not the brokers, set the rates. We have no say as to what the dozens of insurers we represent charge you. But what we do, as one of the pioneers in term life insurance quotes online is use our extensive experience to point you to the companies that are better than others for health conditions, or weight class. Experience counts when it comes to understanding the industry and that is why we specialize and concentrate only on life insurance, not auto or home insurance. We are an unbiased, independent broker, without allegiance to any particular insurer… and that is what you want.

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