Life insurance is an important part of financial planning, ensuring that family and friends have the necessary resources when they need them most.
Unfortunately, life insurance costs have risen along with almost every other expense over the past few years. The good news is that there are some ways you can make it more affordable. Here are four ways to do this.
1. Look for insurance companies that require a physical examination
I usually pay for convenience when it’s an option, but it’s not the best way to go if you’re looking for affordable life insurance.
While the cost of no-examined life insurance policies can sometimes be competitive with those that require a physical examination, you will typically pay more because the insurance company is taking on additional risk by not knowing the state of your health.
As such, you are more likely to find affordable life insurance if the policy requires you to have a physical examination first.
2. Shop around for the best policy
There’s no way around it: Shopping for a life insurance policy isn’t the most interesting thing to do with your time. But it can save you big money!
Special offers: Check out our picks for the best life insurance companies
As with purchasing furniture or a new car, spend some time looking closely at what you’re about to buy to make sure you’re not buying something you don’t need or paying more than you should.
One of the best ways to do this is to comparison shop. It’s easier than ever to get quotes from insurance companies to find out what’s best for you. Because you will likely spend years paying for your policy, spending a few minutes comparing policies could save you a lot of money over the life of your coverage.
3. Get your insurance policies together
Insurance policy bundling ads are everywhere these days. Part of the reason is that insurance companies want to upsell customers with new services, but it can also be a good deal for customers.
Insurance companies take advantage of customers who hold multiple insurance policies (such as life, home, and auto), and once they sign up, they are more likely to stay in business. Offering bundled insurance discounts helps them retain customers for years, and in some cases, they can offer lower rates for this reason.
4. Look for term life insurance
One of the best ways to keep insurance costs low is to sign up for term life insurance rather than whole life. A term policy is for a specific period, while a whole life insurance policy has an indefinite time frame.
Because life insurance expires after a set period, insurance companies often charge less for these policies.
Most people only need term life insurance to help their family pay off debts when they die or to replace the income they provide to their family. But as your life situation changes — including paying off debt or your dependents get older — you may not need life insurance.
The good news is that it is possible to find cheap life insurance options. By spending some time comparing policies, you’ll likely be able to find term life insurance that fits your budget. And if you bundle it with your other insurance policies, you may be able to get it for cheaper than you expected.
Our picks for the best life insurance companies
Life insurance is essential if you have people who depend on you. We’ve combed through the options and developed a best-in-class list of life insurance coverage. This guide It will help you find the best life insurance companies and the right policy type for your needs. Read our free review today.