Inexpensive Term Life Insurance
- Shop around for Term Life Insurance. The first thing you should do is ask several term life insurance companies to quote you the cost of a policy at their company. Rates can differ between companies, so it is certainly worthwhile to ask several different ones to give you a quote. Make sure you fill out their questionaires honestly and fully - if you hide medical problems, you may not be eligible for any death benefits. Make sure to read our related questions on:
- Improve you risk profile - The best way to lower the cost of your life insurance is to lower your risk profile. Stop smoking, get in shape and stop skydiving regularly. If you are healthier and don't take many chances, then insurance companies are more willing to give you their best rates. We go into this in more detail in our question: How do I lower the cost of my current life insurance?
- Consider term life insurance instead of whole life insurance - Term life insurance is much cheaper per month than whole life insurance. This is because term insurance only lasts for a specific period of time, whereas whole life insurnace is good for your entire life. We go into the advantages and disadvantages of this type of insurance in: What is the difference between whole and term life insurance?
- Remove the accidental death rider from you Life Insurance Policy - Many companies sell additional "accidental death" life insurance, sometimes called double indemnity. This form of insurance pays out double your policy if you die in an accident. This may cost $1 to $2 per $1000 of coverage. However, accidents are rare and if you have chosen the amount of your life insurance correctly, you have no need for this additional coverage.
- Consider Group life insurance. Many employers offer life insurance to their employees. If you have a medical condition that puts you in a higher risk category, this form of life insurance is often much less expensive than insurance purchased directly from an insurance company. However, you typically lose coverage when you leave your employer. Read our section on Group Life Insurance for more information.
Continue to read through our FAQ to become more familliar with life insurance so that you can select the right life insurance policy for you!
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