Is Term Insurance Cheap?
Yes, compared to any other type of life insurance that provides protection for a period for 30 years or less, term insurance is cheap.
Why is Term Insurance Cheap?
There are several key reasons term life insurance is so cheap:
How Long Does Term Insurance Last?
Term life insurance provides life insurance protection for a specific period of time – usually 10, 15, 20, 25 or 30 years. The longer your term, the higher your annual cost of insurance.
Some term life policies offer renewal, which means if you need coverage longer than your original term, you may extend life insurance for an additional period of up to 10 years, usually.
Tips to Get the Cheapest Term Life Insurance Policy
Terms for Term Life Coverage
The term is the length of time you have life insurance protection under a term insurance policy.
Term life insurance may be available for 10, 15, 20, 25 or 30 years.
The longer your term, the higher your annual cost of coverage, since the likelihood of your passing away increases as you get older.
Rate Factors for Life Insurance
Important to Consider
Financial Rating – Consider choosing an insurer rated at least "A" Excellent for financial strength from AM Best.
Reputation – Contact your state department of insurance to inquire about the reputation of the insurance carrier you consider buying coverage from.
Years in Business – An insurer in business more than 50 years for example, may be more financially secure than a life insurance company established in the last 10 years.
Size of Insurance Company – An insurer with a larger amount of assets may be more financially secure than a smaller insurance carrier.
Top Pick – Wholesale Insurance
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Highly Recommended – Haven Life
Haven Life uses the information provided in your application to make an instant decision on your application. Healthy, qualified applicants (based on the information provided in your life insurance application) can be insured immediately with no medical exam while other applicants can receive immediate coverage pending a medical exam.