Term life insurance is clearly the cheapest and most affordable life insurance available.
However, since life insurance is an investment you will want to spend your money wisely, so I’m going to give some valuable tips and advise on how to find low cost term life insurance.
Brief Overview of Term Life Insurance
Many people are under the misconception that term life insurance only covers you for a certain amount of years. That’s not really quite right. Term life insurance covers you for your entire life. However, you buy it in packages of time such as 10, 20 or 30 years for example, and that is why is called term.
At the end of the term, you will have the opportunity to purchase another term, or even it to convert your policy to a permanent insurance policy such as whole life, universal life or variable life.
Some companies allow you to buy term insurance until a specific age such as 55 or 65 years of age.
Term life insurance is purchased with certain strategies which you should keep in mind. Since it covers death benefits only, you can consider the reasons for buying term life to include:
- Income replacement to cover the needs of your family. You might only need or want a policy to last you until a certain age or a certain period in your life such as when the kids leave home or up to a certain age such when you plan to retire.
- You might to use a term life policy to use in place of mortgage insurance to pay for your home. By the way, using term life insurance in place or mortgage of life insurance tends to also be much cheaper.
- You might buy the policy to cover debts or use as a form of coverage for your own personal business to cover expenses, debts and whatnot.
- You might want to have just enough to cover your children’s education.
So, as you can see, your reasons for wanting low cost term life can vary considerably and is dependent on individual needs and reasons.
Tips on Finding Low Cost Term Life Insurance
There are many companies offering low cost term life insurance policies, so keep the following in mind to find the best deal and at the best rate.
- Buy only from reputable life insurance companies that are financially stable. Many non-insurance companies exist out there selling cheap low cost term life insurance but you want to be very wary of these companies. The company may not financially last the life of the term you bought, or they may not be reputable in paying out their claims. It is vital you have confidence in the company from whom you are buying the policy.
- Remember that although it might appear to be cheaper to buy a shorter term at the moment, it will cost you a lot more to renew that same policy as you age because life insurance becomes expensive as you age. If you need the term insurance for 20 years, then buy the policy for that period because the monthly or annual premiums will be the same for the life of the term.
- It is also cheaper to pay an annual premium over a monthly premium so you can save some money.
- If you are married, and you both want to carry a term life policy, it is cheaper to buy a joint policy than two separate policies.
- Remember that life insurance is based on your health, your lifestyle habits and your family history. You may not be able to change your family history, but you can change your lifestyle such as losing weight, quitting smoking and other changes that will give you a better rating and save you money.
- Get multiple quotes to compare costs. Use an online quote calculator such as you will find on my site to get a look at how companies compare in terms of costs.
- Be careful about being drawn in to buy extra riders on your term life insurance as that can raise the costs significantly and you may not necessarily require these riders.
- Don’t buy directly from an insurance company or an agent that only represents one or a couple of companies. Always use an independent agent to help you find the best rates and coverage that suits your needs. An independent agent can research dozens of companies and find you cheaper rates even if you have health concerns or are a little older.
Low cost term life insurance is available and can be easily found, but like any investment of your hard earned money, you should take the time to do some careful research to ensure you are getting the best buy.