5 Tips for Finding Affordable Life Insurance

Term life insurance policies already offer affordable life insurance rates. But there are ways to make a cheap term life policy even cheaper. Take a look at these five money-saving tips.

financial insurancel-advisor1: Lock in Low Term Life Insurance Rates When You Are Young. You may think you only need term life insurance if you are a mature adult, but term life insurance rates are very affordable for young people. Locking in as much protection as possible when your health is sound and term life insurance rates are cheapest is a good financial decision.

2: Do Not Buy More Coverage Than You Need. If you purchase more coverage than is really necessary, your term life insurance rates could skyrocket. Most financial planners recommend a policy amount of around 6-10 times your annual gross income.

3: Select Coverage Lengths Wisely. It is important that you select an appropriate length of coverage to keep your term life insurance rates affordable. Individuals who have a 30-year home mortgage, for example, might consider a 30-year policy to protect their home throughout the life of the loan. On the other hand, individuals who are nearing retirement may only require a 10-year term.

4: Take Advantage of Coverage Level “Price Breaks”. Many insurance companies offer “price breaks” at certain coverage amounts (e.g., $75,000 vs. $100,000). Pay attention to those levels—you may pay very little for additional coverage.

5: Shop Around for the Lowest Term Life Insurance Rates. The best way to find cheap term life insurance rates is to shop around. Term life insurance rates vary by hundreds of dollars among different companies, so comparing prices is always worth your time.

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