What Is the Most Affordable Type of Life Insurance?

Put simply, the most affordable life insurance is the type that best meets your needs and fits your budget.

First, specify why you are buying a life insurance policy. Is it to provide income replacement (or, as some call it, “lifestyle replacement”) for your dependents if you die? That is the reason most people see life insurance coverage. They want to make sure that if they die, their spouse and children can keep paying the mortgage (or rent), keep making car payments and credit card payments, and, of course, keep being able to afford day-to-day necessities such as food and clothing. In addition, the benefit of a life insurance policy may be your family’s only hope for continuing to fund your children’s college education.

You may have other plans for your policy. Perhaps, you are designating it as the way to pay, after your death, for your hospital or hospice bills, as well as for your funeral and burial or cremation. Medical bills can easily cost hundreds of thousands of dollars. And the cost of a funeral and burial can easily exceed $10,000. You certainly don’t want this burden to fall to your dependents, and at a time when they are most despondent and desperate.

Other people seek a life insurance policy to name their church or their temple or mosque, or simply their favorite charity, as the beneficiary. The death benefit of  your life insurance policy is a very thoughtful way to show how much you value and care for a house of worship or for a civic or advocacy organization.

The amount of the benefit depends on your planned use. Obviously, you may want to make sure you provide a sizeable benefit to cover your family’s ongoing needs. Calculate your current expenses. And how old are your children? How much money will your family need to meet your spouse’s lifetime requirements and to meet the needs of your children until they are no longer dependents? Adjust for inflation (figure, conservatively, on 5% per year, just for the sake of simplifying the calculation). Ideally, the benefit from your life insurance policy will more than cover the sum. Is the sum $500,000? One million? More? (Remember: The average college education now costs as much as $20,000 to $35,000 per year, depending on whether the school is public or private. If your children are young, know that tuition—plus, naturally, room and board—will rise dramatically between now and then.) That’s how much you need. But how much can you afford?

You might be surprised at just how affordable coverage can be, especially term life insurance (which lasts for a specific “term,” such as 30 years). But first, it is essential to do comparison-shopping. Don’t worry. It’s not painful like it used to be, when you had to go from insurer to insurer, agent to agent, filling out forms at each. Now, you can use a 100% free and unbiased online “quick-quote” service such as save money on life insurance. You just answer a few simple questions then click one button to get quotes from all the leading insurance companies, all at one time. It takes just seconds. Amazing! So what are you waiting for? What is the most affordable type of life insurance? The one that meets your needs and fits your budget…and the one that you find through free, easy comparison-shopping!