How to Secure a Low-Cost Life Insurance Policy

How to Secure a Low-Cost Life Insurance Policy
Fiona Staff7/26/2021

There are times in life that you can probably risk cutting corners: buying conventional bananas over organic, for instance, or opting for generic paper towels. When it comes to your life insurance coverage, however, a little bit of savings may not be worthwhile if it comes at the expense of your loved ones’ financial stability.

If you’re considering a new life insurance policy — or are already shopping around for coverage — there are a few things that you can do to lock in the best possible rate without sacrificing quality or the coverage you need most. 

Factors That Affect the Cost of Life Insurance 

There are a number of factors that will impact the cost of your life insurance coverage, no matter who you are or what type of policy you’re wanting to buy. These include, but are not limited to:

  • Age

  • Gender

  • Location

  • Health and preexisting conditions

  • Family history

  • Coverage options

  • Tobacco use

While some of these factors are within your control (such as tobacco use and how large of a policy you want to buy), others are not (like your family medical history). Regardless of where you stand on each of these factors, though, there are ways to find the most affordable life insurance options available to you.

How to Find a Low-Cost Life Insurance Policy

Here are the top tips for finding low-cost life insurance if you’re considering buying a policy to protect those you love.

Opt for term coverage

There are many benefits to buying a whole life insurance policy over a term policy. Unfortunately, lower cost is not usually one of those benefits.

In general, term life insurance is significantly more affordable than permanent life insurance with the same level of coverage. If you’re looking to snag the lowest-cost option available to you, term is the way to go.

Just keep in mind that term life coverage only lasts for a specific number of years (your term), and you may wind up paying higher premiums if you need to renew that policy after it expires.

Don’t buy more than you need

If you’re in the market for a life insurance policy, it’s probably in order to best protect those you love. It’s important to ensure that you buy enough coverage to take care of their needs and any debt you’d leave behind, however, there is such a thing as too much life insurance.

Depending on the carrier you choose and factors such as your age, health, and income, you may already be limited in the amount of life insurance coverage you can purchase. Within those limits, though, take time to sit down and calculate just how much life insurance you really need.  

Often, there is a fine balance between creating a solid financial safety net for your family and choosing the most cost-effective life insurance option.

Buy young

The younger and healthier you are, the less you can expect to pay for life insurance coverage. So it stands to reason that in order to secure the lowest-cost policy possible, you need to buy early.

By buying life insurance sooner rather than later, you are able to lock in the most affordable price in terms of your age bracket. You’ll pay less for coverage the younger you are — other factors notwithstanding, a 30-year-old buying life insurance will typically see much lower quotes than a 45-year-old shopping for the same coverage.

Buy before you have health concerns

As you get older, you are more likely to be diagnosed with certain illnesses, diseases, or health conditions. By buying life insurance before certain medical concerns arise — such as heart disease, diabetes, or even cancer — you avoid the jump in premiums that a preexisting condition can bring.

Additionally, many of us find that as we age, we may gain more weight or are in worse physical shape when compared to our younger selves. That’s why it’s a good idea to lock in life insurance coverage as early as possible, while you’re healthiest and fittest. 

Buy from reputable carriers

When you purchase life insurance from a trusted, top-rated carrier, you have a better chance of being able to build the right policy for your needs, at a competitive price. Reputable carriers often have a variety of built-in coverage options and features, as well, which will ensure that your life insurance policy is even more comprehensive. 

More than just the initial price tag, though, is the peace of mind that you’ll have knowing that you are getting the most bang for your buck.

By choosing an A-rated (or higher) life insurance company, you are giving your loved ones the best chance for financial security. Your carrier‘s reputation and financial strength ratings mean that if your beneficiaries ever needed to file a claim for benefits, you can expect the company to stand behind the contract that you’ve paid for over the years.

Shop around

Don’t choose the first life insurance quote you see, or choose a carrier just because your parents have used them for decades. Spend some time shopping around and comparing quotes to see what’s available to you, and how much you can save.

Some online platforms allow you to get quotes from multiple carriers at once, without having to enter your information multiple times or search the web for trusted companies.

Bottom Line

Buying life insurance is a personalized experience, with many variables at play. When it comes to finding the lowest-cost life insurance policy options for you and your needs, though, these tips can help boost your efforts and make the process easier than ever. 

If you’re looking for the best, low-cost life insurance options available to you, Fiona can help. In partnership with LeapLife, Fiona offers an easy and comprehensive way to get matched with personalized life insurance policy quotes from trusted, A-rated (or higher) carriers. GET QUOTES

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