At InsuranceScored.com, we help consumers understand how to find the cheapest life insurance rates available with the financially strongest insurance companies.
I think you’ll agree with me when I say it’s easy to find affordable life insurance; however, locating cheap life insurance may be one thing, often the difficult part of the process is getting approved! Sometimes it can feel like an overwhelming process trying to get the best insurance coverage for you and your family.
Simply understanding the various life insurance policies can be stressful and oftentimes overwhelming. We are here to assist you in finding the best and cheapest life insurance policy for you to protect your loved ones.
Good news! It turns out buying affordable life insurance is actually pretty easy if you know what you’re doing.
Important information you will learn in this article:
- How to Secure the Cheapest Life Insurance
- Where to find Cheap Life Insurance
- Different Types of Life Insurance
- How to Compare Life Insurance Rates
- How Life Insurance Premiums are Determined
- Which Type of Life Insurance is Most Affordable (It’s not just term)
- Critical Information to Keep in Mind
Take a few minutes to read through this cheap life insurance guide to educate yourself, and you will know more than 99% of life insurance consumers on how to actually secure low cost life insurance to protect you and your loved ones.
Let’s first talk about the “How to Purchase the Best Life Insurance Policy” since, if you are like me, that’s probably why you are visiting my website right now.
How To Secure The Cheapest Life Insurance
Almost every article on the internet will suggest you work with an independent life insurance agent and it’s for a good reason – that is the best and most convenient way for you to gather assistance fast!
I know it’s hard to trust a life insurance agent over a phone call, so here’s a simple three-step method to make sure you’re actually receiving quotes for low cost life insurance, regardless of whether you are looking for the cheapest term life insurance available or cheapest whole life insurance in the marketplace.
- Get instant quotes with the right health classification. (You can do that on the side bar, however please continue reading below first.)
- Review the list of quotes with an independent life insurance agent and ask how you can qualify for those rates.
- Take an extra step by looking online for the agent or agency to make sure you’re dealing with someone reputable.
TIP #1: When you gather instant quotes, make sure the health classification you are quoting reflects your actual health. “Standard/Regular” and “Preferred” are the two most common rate classes issued.
TIP #2: If you are shopping around with multiple agents seeking the cheap life insurance quotes, please be aware of this critical point. When looking for the best life insurance deal, you must make sure the life insurance quotes you are receiving are comparing “apples to apples”. Let me explain. When a person phones me looking for an affordable life insurance plan my first question to the caller is, “What rate class did the agent use to quote your low-cost life insurance rates?”
Often the caller will reply, “What is a rate class?”. I then patiently explain the different life insurance rate classes and why it is critical to you when comparing life insurance companies to know your estimated rate class. For example: If you are a female, 5’ 3” and 190 pounds you will not receive a Preferred Plus or a Preferred Rate classification by the underwriter. You will probably receive a Standard rate classification.
Why is this important to you when comparing life insurance rates? Because if you are seeking the best life insurance deal around and the agent is providing you quotes using a Preferred Rate classification and you call another agent who provides you a more accurate Standard rate classification the premiums will be night and day. It does not benefit you to receive quotes in a rate class that is unattainable. It will cause you frustration after the underwriter offers you a policy at a Standard Rate class and your premium is much higher than originally quoted.
TIP #3: According to Brian Greenberg of True Blue Life Insurance, “take an extra step in your search for cheap life insurance and look online for the agent or agency. Search and see what kind of reviews they have. If they don’t have reviews, ask for a copy of their insurance license. Make sure you are dealing with someone reputable.”
Although we all believe our kids are the smartest and we are in great health, in order for you to receive realistic cheap insurance quotes you must be very open about your health issues with your agent. Trust me, the best life insurance deals are no deal at all if you are not getting accurate quotes reflective of your actual health status. It is wise to plan your life insurance budget on realistic and attainable quotes.
Here’s a very general reference:
Preferred Plus: Superman health. No health issues now or in the past. No medications or criminal history.
Preferred: Great health, but might take a medication for cholesterol, high blood pressure, etc.
Regular Plus: Above average health. Some medications, maybe a little overweight.
Regular: Average health. You have some health concerns, but nothing to be concerned with.
Again, when gathering your life insurance quotes, choose your health classification carefully to receive accurate rates. Most life insurance companies will require you to undergo a physical exam to determine your rate classification.
TIP: Prior to applying for a life insurance policy requiring a medical exam we strongly recommend you look into a no physical exam required life insurance policy or life insurance for high risk people, which is offered with a higher premium. Complete the life insurance quote form on this page. It is free, fast and fun to use! You’ll quickly receive exact rates from dozens of top rated life insurance companies. These are the same rates as if you called the company directly. There are also companies who offer life insurance for those with pre-existing conditions.
The results will look something like this:
We suggest you print this screen or write down the cheapest life insurance companies displayed.
Suggestion: When you speak with an independent life insurance agent, and you receive quotes that are more expensive than what you found, ask them how you can qualify for the top rate(s) that you have right in front of you. Next, go down the list of companies and have the agent tell you the exact reasons you can’t qualify for the lower rates. Remember of course to receive the most affordable insurance policy it helps to be in good health!
Keep in mind that life insurance companies view every risk differently. Each carrier has their “niches” for risk. When you compare life insurance companies, you’re qualifying the agent that’s working with you by testing their knowledge of each company. If they can’t give you a good reason why you can’t qualify for a specific company, apply with that company.
The most important advice we can give is this: Life insurance rates can be dramatically different. We urge you when comparing life insurance companies to make certain you are using the same rate classification to insure accurate results. The technology of viewing instant quotes offered on our site makes everything transparent. Work with an independent agent who demonstrates knowledge and who you feel sincerely wants to help you protect your loved ones. You will succeed in finding cheap life insurance for you and your loved ones.
Where To Find Cheap Life Insurance
Life insurance is a very competitive market (this is great for you!) which requires most insurance companies to provide low cost term life insurance rates. Your job is quite simple. You have everything at your fingertips to find the most affordable life insurance policies in the marketplace. Simply compare the quotes side-by-side using an unbiased source.
InsuranceScored.com is an unbiased source.
Complete the free form on this page and quotes will be displayed on the next screen from the nation’s top-rated life insurance companies. These quotes won’t be any different than the rates the life insurance companies provide if you phoned them directly (and wait on hold for a long time!).
Although most life insurance policies serve the primary purpose of providing a cash payout upon one’s death, there are various additional features offered with cheap life insurance policies and several different types to choose from.
Understanding how different types of insurance policies work will help you to better choose the most affordable coverage and what type of benefit will best fit your situation.
Different Types Of Life Insurance
In general, there are two primary classes of life insurance. These are term and permanent. Low cost term life insurance provides a tax-free, cash death benefit, generally without any type of cash accumulation within the policy. Affordable term life insurance is offered for a specific length of time; often for 10, 20 or 30 years. Your rates will not increase during the length of the coverage. This is typically the simplest and most affordable life insurance plan available.
Permanent life insurance also provides the insured’s beneficiary with a tax-free, cash death benefit. However, in addition, these policies offer a cash value component that can act as a type of savings account.
The premiums on permanent life insurance are higher than those on term insurance policies. However, this is primarily because a portion of the premium on permanent life insurance policies is going into the cash value component. In addition, permanent life insurance generally lasts your entire lifetime. The premiums generally do not increase. When you compare life insurance companies, you can easily find low-cost life insurance rates including both cheap term rates and affordable permanent rates.
If you are seeking cheap family life insurance, each type of term or permanent insurance policy has its own advantages and disadvantages that you should be aware of when you’re shopping for insurance coverage. Every family is different, which means that each applicant is going to have unique financial needs or preferences regarding the amount of life insurance they wish to purchase. There is no “one size fits all” insurance plan.
If you need help deciding which plan is going to work for you, an independent agent will walk you through the process and recommend the best plan for your needs. The agent will ask you several questions to allow them to make an informed life insurance recommendation.
First step? Gather quotes using our free quoting form on this website. It is fast, easy and convenient.
TERM LIFE INSURANCE POLICIES
Term life insurance is the most basic and cheapest life insurance coverage available. In return for a premium payment, the insurance company will pay out a stated amount of tax-free death benefit to a named beneficiary – assuming, of course, the policy is in-force when the insured passes away.
As its name implies, term life insurance will remain in-force for a stated amount of time – or “term” – such as 10 years, 20 years, or another set length. Once this term has expired, the policy holder will need to “re-qualify” for coverage at his or her then-current age and health condition. Some term insurance policies offer a conversion option. This option allows you to convert your term life insurance policy into a permanent life policy without having to go through the underwriting process again.
While the initial premium on term life coverage is less than a comparable amount of permanent coverage, over time term life insurance premiums can become quite high. This is because policy holders will often be required to complete underwriting to renew their policies. For many families with young children, cheap term life insurance is a wise and excellent choice.
PERMANENT LIFE INSURANCE POLICIES
The permanent life insurance arena contains a variety of different policy types. These include whole life insurance, universal life insurance, and variable life insurance – and they all have very distinctive features and benefits.
Whole Life Insurance
Whole life insurance policies are generally intended to remain in force until the policy “matures” (pays out a death benefit), or until the owner of the policy cancels or stops paying the premiums that are due. These policies literally can provide life insurance protection throughout the “whole life” of the insured. Whole life is also the simplest form of permanent life insurance coverage. There really is no such thing as cheap whole life insurance. Always recommended to gather multiple quotes when researching for whole life insurance.
A whole life insurance policy has both a death benefit and a cash value component, with the cash value portion being further broken down into two separate elements – one where the cash value grows on a pre-determined basis during the life of the policy and another non-guaranteed element that is made up of policy dividends or excess interest.
In most instances, the cash value in a whole life policy can be accessed at any time through policy loans. Paying back these loans is optional; however, any portion of the loan that is not repaid at the time of the insured’s death will decrease the amount of death benefit proceeds that are due to be paid out to the beneficiary. More on whole life insurance…
Affordable term life insurance and affordable whole life insurance are both readily available in the market today. We recommend you do some basic research while obtaining quotes and comparing them. Best results are obtained when you compare at least three different life insurance quotes and go with the cheapest insurance rate offered.
Universal Life Insurance
Universal life insurance policies have often been described as being similar to a term life policy with a cash value component. When you are seeking affordable life insurance policies with permanent life coverage, then Universal Life must be on your list.
With this type of insurance, rather than an insured simply purchasing a term policy and privately investing additional funds for a cash account, a portion of the universal life policy’s premium goes towards the cost of the insurance death benefit and another portion goes towards a cash account that earns interest. As with whole life insurance, this cash value component accumulates on a tax-deferred basis.
Typically, a universal life insurance policy holder may adjust – within certain limits – the death benefit amount, as well as the timing and the amount of their premium. For example, if the policy holder opts to pay a lower premium within a given time frame, the cash value in the policy will not build as fast, yet the guaranteed life insurance amount will stay in-tact.
Variable Life Insurance
Variable life insurance offers policyholders permanent death benefit protection along with a non-guaranteed investment component. With this type of policy, individuals can allocate their funds into various types of underlying investments such as stocks, bonds, or mutual funds.
This offers the opportunity to grow funds based on favorable market conditions on a tax-deferred basis. It can also, however, mean that there are more market-related risks involved. Because of their market exposure, variable life insurance policies are considered to be securities and therefore must be sold with an accompanying prospectus.
How Are Life Insurance Premiums Determined?
Insurance companies are able to offer low cost life insurance rates if their company expenses (including claims) and agent’s commissions are low and their general fund is performing well.
Life insurance policy premiums are determined based upon what a life insurer must charge to provide for company expenses, overhead, profits, and the cost of the insurance company’s anticipated losses. An insurance company’s anticipated loss is based on the company’s past experience with average risk and no extraordinary events.
Life insurance premiums are at historic lows and will only increase moving forward because of economic pressures and due to increased regulations within the industry to maintain higher reserves. We strongly urge you to gather several quotes today easily and quickly using our quoting form on this page.
Which Type Of Life Insurance Is Affordable?
Initially, cheap term insurance will clearly offer you the most insurance protection at the lowest premium.
Many times on the telephone people tell me, “I can’t afford the premium.” My thought to that comment is, “If you cannot afford the $50 or $100 a month now, when you and perhaps your spouse both work, then how on earth could you maintain your lifestyle if the breadwinner in your family passes away?”
With the abundance of cheap life insurance policies in the marketplace nowadays, now is the best time to protect those you love and who count on you financially.
There are 10, 15, 20, 25 and 30-year term policies. 10-year term is the least expensive and 30-year term is the most expensive. If a 10-year term policy is too expensive, consider an “Annually Renewable Term” (ART) policy. The 10 or 15 or 30 denotes the length your term life insurance policy will remain in force providing you protection. During the length of your term life policy an attractive benefit is your rates will not increase and your coverage will remain the same.
An ART will initially be cheaper than a 10-year term, but rates will go up a little bit every year. However, securing protection and protecting your family is the goal. How much coverage that you purchase and for how long will depend on your family’s budget and how many debts you have and the number of children. When rates start getting too expensive, perhaps you can lock in a 10-year term policy at that time and be in a better position financially to be able to afford it. A good guide for budgeting is to review your telephone bill. You should budget your life insurance amount at least as much as your monthly phone bill.
If you are older and approaching retirement, term life insurance may not be your best choice. Most people buy term to protect their income; especially if they have family members dependent on them financially. When you reach retirement, your need for insurance coverage will change as your children have become young adults and are generally not as financially dependent on you (we hope, right?). 😊
It is common to purchase a smaller burial insurance policies, also known as final expense policy to cover funeral and other expenses. These are typically $5,000 to $25,000 whole life policies guaranteed level (no rate increases) for the rest of your life. There are also final expense policies that offer guaranteed protection regardless of your health. Most of us do not want to leave our loved ones with the expenses related to our funeral. A burial policy is a prudent choice.
Critical Information To Keep In Mind
Not all life insurance policies are built the same. In other words, cheapest is not always the best.
There are options, riders and benefits like conversion options that could be weak or non-existent for some term life insurance policies. That is why we recommend you compare life insurance companies. Term conversions allow you to convert to a permanent life insurance policy with no evidence of insurability.
NOTE: Your new premium rate will be based on your current age, thus your rates will be generally much higher. Fortunately, if you’re nearing the end of your term policy and you have a severe health condition, you can convert your term life insurance into a permanent policy. If there were no conversion options, your term policy would expire, and you’d be left with no life insurance options.
There are also living benefits associated with some policies where if you get diagnosed with cancer, heart attack or stroke – you have access to a portion of your death benefit to assist you in paying medical and living expenses. These benefits come at a price though – you won’t be getting the cheapest life insurance coverage if you opt for a policy with living benefits. Again, many of your decisions will be based on the most affordable insurance related to your budget.
If these extra benefits aren’t important to you, then ignore it. We just want you to know what is available to you in the market place.
We’re an unbiased source for life insurance rates. Use our free, instant quote tool and compare rates to see what amount of life insurance you can afford. Our quote form is easy, informative and fun to use to make sure you secure cheap life insurance. We want you to enjoy the peace of mind that an affordable life insurance policy provides for you and the life-changing protection offered to those you love the most.
We know that most of us do not want to think about our own death. However, not planning for the inevitable will harm those you love severely. Just imagine your family without your income? Everything your spouse and kids enjoy would be at risk. If something tragic happened to you without having life insurance, your family would be left stranded with not only debt but other expenses as well. Losing a loved one is never going to be easy; unfortunately, leaving behind a huge debt is going to make the situation a thousand times worse.
It is often said that it is better to be five years too early when purchasing life insurance than five minutes too late. We agree. You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the insurance protection that your family deserves. Try out our easy to use quoting form on this website for your fast quotes today.
Those that cannot afford life insurance need life insurance the most. Better to buy a small life policy than no policy at all.Take advantage of your current good health and protect your loved ones with a life insurance policy today.