Buying Inexpensive Term Life Insurance
The best insurance is term life insurance, at least since it first appeared in the mid 70s. Although term insurance is the least expensive you can buy, there are some options to reduce premiums and find policies that are even cheaper. Here is how to find inexpensive term life insurance.
Not every policy is created equal, and not every insurance carrier sells the same kind of insurance, although there is one simple premise regarding term life: you get a policy for a pre-determined period of time, and this time period along with your age will determine what your monthly payments will be. A policy can be bought in five-year increments and they typically range from 5 to 40 years.
Term insurance is pretty easy to understand, as far as the concept goes. You buy a policy for a specific face value (death benefit) amount, and your survivors will be paid that amount if you pass away while the policy is live (no pun intended).
The basic insurance is fairly cheap, but occasionally a carrier will include items you don't need or want and therefore shouldn't have to pay for. Before signing off on your new insurance (you need to sign to say you are accepting the terms and conditions in the policy) make certain you understand what you are paying for and what you are covered for. If you see things that add costs, ask to have them deleted before you accept it in writing. You are looking for things like double indemnity payments which mean if you die in an accident, the face value of your policy doubles, or sometimes triples, and this is the amount given to your beneficiaries. Of course, your premiums increase to reflect this benefit as well.
You may also be charged if the policy will pay in the event of a suicide or an act of war. For many people, the likelihood of having either one occur is so obscure as to make the additional amount added to the premium not worth it. Most policies cover suicide after they've been in effect for two years anyway.
If your premium payments are your major problem, you can get a policy for fewer years. Instead of a 30-year policy, buy a 10 year policy. Many carriers will let you renew at cheaper prices every time your policy needs to be renewed.
Getting policies online is a real option because they are much cheaper. You don't get any real personal attention but you don't need it. Just be aware of what you're paying for and what it is the policy covers. Many "reduced rate" insurance companies give the same coverage to all who apply. So even though they promise "cheap", it could be far more beneficial if you didn't have to pay the higher rates to compensate for others with medical problems.
When you start looking at prices, make certain you end up paying for insurance that gives you a discount for being healthy. This is called a "preferred" rate. Frequently, cheap insurance companies don't take healthy people into consideration and they make everyone pay the same premium. Be aware, it might look cheap, but it may not be as cheap as it could be.