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Cheap Life Insurance

Are you one of the millions of Americans without life insurance? Recently studies have found that approximately 30% of adult Americans have no life insurance at all (Life-line) Although 88% of Americans agree that life insurance is necessary, (Bankrate) many of them haven’t purchased any.

And one of the major reasons people give for not having life insurance is that they can’t afford it. One survey by LIMRA International found that 70% of people with no life insurance said they couldn’t afford it. (LIMRA International) But the fact is that cheap life insurance is available if you take a little time to find it.

Isn’t all life insurance expensive and confusing?

No, actually life insurance doesn’t need to be complex and expensive. Unfortunately, too many people believe this and don’t bother to look any further. The truth is that life insurance rates have been Mortgage Life Insurance steadily in the past few years and many are now quite affordable for almost anyone. The rates for term life insurance are now 50% cheaper than they were 10 years ago. (Baltimore Life)

What is term life insurance?

Term life insurance is the most affordable and common type of life insurance. Basically, you choose a benefit amount and pay monthly or annual premiums for a pre-determined term; usually from 10 to 30 years. If you should die within this term, your family receives the death benefit amount you selected. That’s all there is to it. All you have to do is remember to make the payments on time and the policy remains in force for the term selected.

Are there other kinds of cheap life insurance?

There are other types of life insurance, but they are generally significantly more expensive than term life insurance. Whole life insurance is the other main type of life insurance, and the cost of whole life can be prohibitive for many people. For example, a 35-year old male non-smoker purchasing a $300,000 whole life policy would pay between $328 and $366 per month for this coverage. Compare this with a 30-year term policy for the same applicant and amount and the results are a surprisingly affordable $37 to $41 per month. (State Farm)

If life insurance is this cheap, why don’t more people buy it?

Many people are not aware of how reasonable life insurance can be, and others simply are more focused on living for today or buying consumer goods. David Woods, president of the non-profit Life and Health Insurance Foundation for Education (LIFE) reports, in many cases, a $500,000 life insurance policy can be had for the daily price of a cup of gourmet coffee. He notes “It’s not about affordability, it’s about priorities.”

He says that many American consumers are more focused on material goods, such as the latest big-screen TV or SUV than taking care of their families. (Insure Me Blog) Many insurance experts warn that fewer Americans are purchasing life insurance and this could have devastating consequences for their families in the future.

What if I already have life insurance?

If you have insurance that was taken out over 5 years ago, you should probably review it and see if there are cheaper deals available today. If you are among the millions of Americans who have some life insurance but are considered underinsured, you may want to consider purchasing additional coverage. Over 50 million Americans are aware they need more life insurance than they currently have. (Christian Science Monitor)

If this applies to you, you may want to check into cheap term life insurance to supplement your coverage. Jack Dolan, spokesperson for The American Council of Life Insurers says “If you don’t have adequate life insurance, the fact that it is less expensive than ever before should be the last incentive you need.” (Insure)

What is the best way to find cheap life insurance?

By all means, begin your search online—but don’t end it there. The Internet is by far the simplest and quickest way to find insurance companies and agents, but may not be the best way to buy a policy. Research shows that 85% of US consumers shopping for insurance will do research online, but not purchase there. (Bankrate)

Most insurance companies have a website and encourage you to visit them and compare rates and services, or you may prefer a comparison site such as Insweb or Quickquote. Spend some time comparison shopping and familiarize yourself with basic insurance terminology. Once you have an idea what you need and can afford to pay, contact an independent insurance agent. These agents are not affiliated with a specific company and can find you the best deal. They also have the tools and software to be able to review your info and run risk assessment profiles and find you the cheapest policy available. This also allows you to avoid online scams.