Guide to the affordable life insurance

The insurance premium includes factors beyond our control, such as age and health on the day of purchase. Another group of elements consists of the type and coverage you're choosing.

Life insurance may seem too complicated for some, but you will be surprised to learn how affordable such a service can be, especially if you're insuring when you're young. Let's talk about a 20-year, $500,000 term life policy. For a person 30 years old, the monthly premium will not exceed the cost of cinema tickets.

The insurance premium includes factors beyond our control, such as age and health on the day of purchase. Another group of elements consists of the type and coverage you're choosing. 

There are several stages to reducing premiums and getting quality life insurance.

Opt for term life insurance

Not all people know why is term life insurance the best variant. It's the most straightforward and cheapest category of policies; such services are enough for most people. Its validity period is a certain number of years and solves your financial problems as long as you have obligations in a mortgage or maintenance of dependents. In the event of your death during the term, selected beneficiaries will receive decent payments.

As for permanent life insurance, it is more expensive. The fact is that permanent policies, for instance, whole life insurance, involve lifelong coverage; they are a profitable investment. 

Pass a medical examination

If you do not complain about your health, choosing a policy that requires a medical examination makes sense. A health worker will ask about your medical history, perform a nicotine test, and record your blood pressure, cholesterol, and glucose levels. The size of the premium depends on these indicators of health.

Determination of the client's health status reduces the risk to the insurer. Therefore, life insurance without a medical examination is more expensive.

Buy a policy as soon as possible

Life insurance companies offer the most favorable conditions for young and healthy clients, so choose coverage right now. Health often deteriorates with age, and life expectancy decreases.

In most cases, the amount of insurance premiums are fixed for the entire policy period, regardless of changes in health indicators. If you are looking for affordable life insurance, you can apply immediately.

Stop smoking

Regular use of nicotine products leads to severe diseases such as cancer or diabetes; smokers always pay more for life insurance due to such risk. You may be considered a smoker if you use cigarettes, vapes, cigars, or chewing tobacco - it all depends on the conditions of the insurance organization.

To qualify for a non-smoking rate, you must prove that you have been tobacco and nicotine-free for at least a year. If you are planning to quit smoking and need an insurance policy right now, choose a short-term policy and postpone applying for a traditional term life insurance until you get rid of a bad habit.

Buy only as much coverage as you need

Calculate how much life insurance you need and ask different service providers for quotes on that amount. Then purchase a policy according to your budget, or reduce the coverage to the maximum amount you can afford.

At least some life insurance policy is better than nothing; you can improve the contract terms when the financial situation is more stable (for example, when you get rid of dependents).

Think about rounding the coverage

You can save a lot by buying a little more coverage. An insurance company may offer a discount when purchasing coverage for $300,000 instead of $250,000. When you decide how much life insurance you need, ask about the discount thresholds.

Try to improve your health

Experts will evaluate your body mass index when reviewing your life insurance application. Since a high rate is considered an indicator of chronic diseases, people with obesity will have to pay a significant premium.

The same is true for cholesterol and blood pressure. You can get low premiums if total cholesterol is lower than 200 milligrams per deciliter and blood pressure stays 120/80. Choose a healthy diet, regular exercise, quit smoking and alcohol to improve your health. 

Some insurers give discounts to clients who adhere to a healthy lifestyle.

Control all pre-existing medical conditions

Contemplating what to choose, term vs whole life, focus on things that can influence. Suppose you'll prove that you are in control of your condition, undergo regular medical examinations, and take medications as directed by doctors. In that case, you will be able to receive a standard rate.

Discard unnecessary riders

When applying for life insurance, you can add ancillary options called riders, they allow you to close some gaps in your contract, but not all riders are equally helpful. Some riders are free; others significantly increase the size of the premium. For instance, adding a premium return policy that refunds all premiums if you miss the deadline increases the cost of the policy by about five times.

Ask about discounts in case of paying your premium annually

Most companies offer customers the choice to pay whole life or term life insurance premiums monthly, quarterly, semi-annually, or annually. Some insurers increase the premium for those who prefer frequent payments. If you are willing to make large upfront payments once or twice a year, this will save up to 5%.

Look around

About 800 insurance companies are operating in the United States that offer whole life or term coverage, and these organizations are fighting for customers. Compare quotes from different providers and find the best life insurance policy.

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