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How to find the most affordable life insurance policies

Jul 8, 2021 5 Minute Read

Think you need to choose between high-quality and budget-friendly when it comes to choosing a life insurance company and policy? We have some good news for you.

Life insurance offers important financial protection that costs less than you might expect. More than half of Americans believe term life insurance costs three times its actual rate, according to industry group LIMRA. Younger generations overestimate the costs even more, with 44% of millennials pegging the price of a 20-year term life insurance quote for a healthy 30-year-old at over $1,000 a year – five times the actual cost.

In reality, the cost of a $250,000, 20-year term life insurance policy for a 30-year-old woman is about $18 per month, about the same as a streaming service subscription. Knowing what to look for when you shop for coverage can help you save even more.

Wondering how to find affordable life insurance? Your life insurance rates, or premiums, depend partly on the policy and partly on personal factors:

  • Personal factors can include things like your age, health, tobacco use, your occupation and hobbies, your finances, your foreign travel, and any criminal history.
  • Policy factors include the policy type, the policy length, the coverage amount, and any riders or customizations.

Here’s a guide on what type of insurance to buy, when to shop, and more tips to save on life insurance.

What is the most affordable life insurance?

Term life insurance is definitely the way to go if you’re looking for the least expensive life insurance coverage.

Term life offers coverage for a set number of years, typically 10 to 30 years. If you die during the life of the policy, term life insurance provides a guaranteed, tax-free payout to your beneficiary. Your premiums also stay level for the entire term, making it an affordable and popular choice for many families.

Unlike permanent life insurance policies, which provide lifelong coverage and also build cash value, term life insurance keeps you covered right when you need it. For families that just need protection during critical years, like when they’re paying off a home, paying significantly lower costs for a policy that just provides temporary coverage is well worth it.

How to find affordable life insurance

Beyond choosing term life insurance, what are some other ways you can save on coverage? Here are a few tips for finding low cost life insurance:

  • Buy young. Life insurance tends to get more expensive the older you get, so it’s better to buy life insurance and lock in a premium when you’re younger. Remember that $250,000, 20-year term life policy that cost $18 per month for a 30-year-old woman? The same policy costs about $25 per month for a 40-year-old woman. Over the years, those extra costs can add up to hundreds of dollars in extra premiums. Waiting to buy life insurance also means the risk of developing health issues that could make life insurance more expensive. Once you buy life insurance, your premiums are locked in, even if you develop health issues later.
  • Get healthy. Getting and staying healthy can help you save money on life insurance, especially if you’re willing and able to take a medical exam. Traditional term policies for life insurance with medical exams are usually cheaper than simplified issue plans, which provide faster approvals and don’t require a medical exam. Your smoking habits can also have a huge impact on your life insurance premiums. Smoker premiums are typically much higher than non-smoker premiums, but you may qualify for non-smoker rates a year after quitting smoking, as long as you’re in good health otherwise.
  • Buy the right amount. Both the coverage amount and the policy length of your life insurance policy impact the cost of your monthly premiums. You want to buy enough life insurance without paying for more than you need. For example, if your kids are in high school and you have less than 15 years to go on your mortgage, you might not need a 30-year life insurance policy. When calculating a coverage amount, think about current needs, like replacing your income, and down-the-road ones, like saving for college. Our term life calculator can help you figure out the best coverage amount for you.
  • Compare quotes. Every insurer is a little different, and some might be a better fit for you, especially if you have special circumstances. For example, if you smoke the occasional cigar, some insurers will give you non-smoker rates, while some will classify you as a smoker. eFinancial can help you compare life insurance quotes, companies, and plans to find coverage that is not only affordable, but also works best for you and your family.

Want more information about inexpensive life insurance?

We’re here to help. eFinancial works with top-rated life insurance companies to help you find the right type of life insurance and coverage for you and your family. Call us or start your quote online today.