How to Get Life Insurance for Less
Are You Looking to Save Money When Buying Your Life Insurance Policy?
If so, there are several ways you can go about lowering the overall cost of your insurance policy.
We’ll review several helpful tips to show you how to lower the cost of life insurance and help your budget go further with purchasing life insurance protection for your family.
What is the Cheapest Type of Life Insurance?
There are two basic types of life insurance: Term Life and Whole Life.
Whole life insurance provides lifetime protection, builds up cash value and you may be able to take a loan from the cash value.
However, whole life usually costs up to 5-10 times more than the same amount of term insurance protection.
Whereas, term life is pure protection, providing only a death benefit and no cash value.
Term coverage is so affordable because it is temporary, has no investment feature and only provides a death benefit if the insured person dies during the policy term.
If you outlive the duration of your term policy, there is no payout of any benefits, and your life insurance coverage ends.
How Does Term Life Work?
Term insurance is temporary coverage lasting for a specific duration, usually up to thirty years.
Usually, term life policies offer coverage up to a maximum duration of 30 years.
However, depending on your current age and health, you may be able to select a "Policy Term" that provides protection for a period of 10, 15, 20, 25, 30, 35 or 40 years.
Term life builds no cash value inside the policy, it is not an investment, it is "Pure Protection".
That’s why it usually costs up to 5-10 times less than permanent life insurance.
Term life is the cheapest type of life insurance.
Term life insurance lasts for a duration of up to 40 years.
Term policies pay the beneficiary the face amount of the insurance policy if the insured person dies during the term of the policy.
For example, a 20-year term life policy with a face amount of $350,000 would pay $350,000 to your beneficiary if you die any time during those 20 years.
If you're alive at the end of the policy term, the coverage ends with no payout.
There are several ways you may be able to save some money when buying term life insurance coverage.
While none of us wants to spend more than necessary on life insurance, these tips may help you save up to hundreds of dollars per year, depending on the type and amount of life insurance you need.
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