Affordable Life Insurance Protection for Your Family

What is the Cheapest Life Insurance Policy?

Are You Looking for the Cheapest Life Insurance Policy?

What is the Cheapest Life Insurance Policy?

If so, you may want to find out which type of life insurance offers the very lowest rates.

That’s simple. It’s term life. 

Why does term insurance offer the lowest prices on life insurance protection?

Because, term life is temporary coverage lasting for a period of up to thirty years.

With term insurance, you select a "Term" (duration) for your policy. You can usually choose from terms of 10, 15, 20, 25 or 30 years. However, older people may be limited to shorter a shorter term for coverage – maybe 5, 10, 15 or 20 years.

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Answer to the Question "Which Life Insurance is Cheapest?" 

The lowest priced life insurance is term life insurance for the shortest term available and in the lowest amount of coverage offered. The person who will qualify for the lowest premium will be the youngest adult in the best overall health.


Type of Life Insurance

There are several variables that affect how cheap, or expensive, your life insurance policy will be, and those variables include the type and amount of life insurance.

In addition, your personal risk factors, which impact your life expec6ancy (how long you are expected to live), play a part in determining your rate per $1,000 of life insurance coverage.


Duration of Coverage

The shorter your term for term insurance, the lower your cost of coverage, because the probability is less that you will pass away during the shorter period of time. 

However, if the duration of your term life policy was longer, the chances are greater that you may pass away during the period you are insured for life insurance.


Amount of Insurance

Your cost of life insurance will increase with the amount of insurance you need.

For life insurance, you are charged a rate per $1,000 of coverage. So, the higher your amount of insurance, the more your policy will cost.


Example: $100,000 life insurance for 20 year term, at $2.50 per $1,000 coverage.

So, based on the above figures, your term life plan would cost you $2.50 X 100 = $250 per year.

Your rate would be higher for a 30 year term life policy because the odds you may pass away during the additional 10 years of coverage are greater compared to the chances of you dying during the 20 year term.


Personal Risk Factors

Several of the most common risk factors used by all insurers to help develop your rate for coverage include your age, gender, health, family health history, lifestyle, tobacco use, height-to-weight ratio, driving record, hobbies and occupation, among other things.


Which Insurance Company Offers The Cheapest Rates?

It varies based on your own personal risk factors, including your gender, age and health; as well as, the type of life insurance policy you need.

However, some of the more competitive insurers when it comes to pricing on life insurance policies include Banner Life, Mutual of Omaha, Principal, Protective, SBLI, North American, AIG and Fidelity Life, among others.


How to Find The Cheapest Life Insurance Policy


Are You Trying to Find the Cheapest Life Insurance Coverage?

If so, you may want to learn how your coverage may cost less, and what factors will have an impact on the price you pay for a policy.


Two Keys to Getting Cheap Life Insurance Plans 

  • Choose a term life insurance policy
  • Get quotes from multiple life insurance carriers

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If you want to get the most affordable life insurance, there are several tips you can follow to lower your cost of coverage.

Although you don’t have control over your age, there are other pricing factors you can control to help lower your cost. 


Tips to Save You Money


  • Get Multiple Price Quotes – Rates may vary quite a bit between insurers, so make sure you compare pricing from several of the leading life insurance companies
  • Buy Term Life Insurance – Choose term (temporary) life insurance over permanent life insurance, because permanent plans cost up to 5 to 10 times more.
  • Avoid Riders and Additional Coverage – Don’t add coverage to your plan you don’t need.
  • Don’t Use a One Company Life Insurance Agent – A captive agent only has access to pricing from one insurer, unlike an independent agent who can place coverage with multiple insurers.
  • Don’t Delay Getting Insured – If your health changes you may become uninsurable or your rate may be much higher if you wait, which could make life insurance unaffordable for you.
  • Bundle Coverages If Available – Ask your current auto and/or home insurance company if you can get an additional discount for placing your life insurance with them.
  • Review Financial Rating of Insurer – Choose a highly-rated life insurance carrier because you want to make sure the insurer will be around I the future to pay out any claim when needed.
  • Don’t Smoker Tobacco or Marijuana – Rates are usually much higher for anyone who smokes tobacco compared to non-smokers.
  • Pay Premiums Annually – Choosing to pay your premiums once per year (annually) may save you some money over monthly premiums.
  • Take The Medical Exam – You may qualify to purchase a lower cost policy by taking the medical exam, compared to premiums charged for non-med policies.
  • No High-Risk Activities – People who take part in high-risk, adventure sports are charged a higher rate per $1,000 of coverage.
  • Keep Your Driving Record Clean – If you have speeding tickets, accidents or DUI’s on your driving record, you will pay more for life insurance.
  • Choose 10 Year Term – The shorter your policy duration, the lower your annual cost of insurance. Choosing a shorter "term" for coverage will lower your premiums.         
  • Use a Needs Calculator – By using a needs calculator to assist you in choosing the proper amount of life insurance to buy, you won’t be paying for more protection than you actually need.


Why is Term Life Insurance Cheapest?

Term insurance offers by far the lowest cost coverage because it is temporary insurance and it is pure protection, meaning there is no cash value inside the policy, it is life insurance only.

Many people do outlive the duration of their term life policies, and others may choose to cancel their policies, or are unable to continue making premium payments.

That’s why only about 3% (approximately) of term policies pay out a death benefit, which is another reason rates are so low for term life coverage.


What Affects Your Life Insurance Rates?

There are several key factors that affect your rate per $1,000 of life insurance coverage, including:

  • Duration of Term – You may choose coverage for a "term" (duration) of 10, 15, 20 or 30 years. The shorter the term of your policy, the lower your annual cost of life insurance.
  • Amount of Coverage – The higher the amount of coverage, the higher your annual cost of coverage.


In addition, several other personal risk factors play a role in determining your rate for coverage, including:

Personal Risk Factors:

  • Age
  • Gender
  • Health
  • Lifestyle
  • Tobacco Use
  • Alcohol Use
  • Occupation
  • Hobbies
  • Driving Record
  • Credit History
  • Family Health History
  • Height-to-Weight Ratio 


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Top Pick – JRC Insurance Group

JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.


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