The Best Affordable Life Insurance
Finding the most life insurance coverage for the least amount of money is far easier today than a generation ago. It's possible to calculate your needs and compare the best online life insurance policies with just a few clicks of your mouse. Whether you're considering term life insurance or an affordable whole life insurance policy, several factors impact premiums, including:
- Type of insurance: Term life insurance is considerably less expensive than a comparable whole life policy.
- Your age: People who are young and healthy can expect to find affordable life insurance more easily than older people.
- Your health: People with severe medical conditions or other risk factors may be uninsurable or unable to get affordable life insurance.
- Your gender: Since the average lifespan for women is five years longer than for men, life insurance premiums for men are usually higher.
- Length of term: A term life insurance policy with a 5- or 10-year term will be less expensive than one with a 20- or 30-year term.
- Amount of coverage: More coverage means higher premiums when you're shopping for the most affordable life insurance.
Optional riders: A rider is an add-on to a basic policy that provides additional benefits like coverage for your children or spouse, accidental death & dismemberment payouts, or waiver of premiums if you become disabled. If you're looking for cheap life insurance, avoid unnecessary riders.
Term vs. permanent life insurance
A term life insurance policy is the most affordable, low-cost life insurance option. Term life insurance policies provide coverage for a certain length of time. Most policies have a term of 10 or 20 years, though shorter and longer terms are also available. If you die during the policy's term and your policy is in good standing, the insurance company will pay the death benefit to your beneficiaries. However, if you pass away after the term ends, no death benefit will be paid.
On the other hand, as long as premiums are paid, permanent insurance never expires. A whole life policy will cost you significantly more than term insurance, but unlike term, it builds cash value that can be accessed by taking out a cash value withdrawal or a life insurance loan while you're still alive.
Final expense or burial insurance is one of the most common permanent life insurance options. These policies generally feature guaranteed acceptance regardless of your health status, and coverage amounts up to $50,000. Although Ethos doesn't offer policies designed specifically for end-of-life expenses, any of our policies can be considered as appropriate life insurance for seniors, with payouts that can be used by loved ones to cover funeral costs, debt payments, or anything else your beneficiaries choose.
Affordable life insurance policies that fit almost any budget are available through top insurance carriers. The lowest term life insurance premiums can be found if you follow these simple strategies:
- Don't delay: Since premiums are mainly dependent on age and health, younger people in good health tend to pay less for insurance. If you apply for coverage in your 20s or 30s, you'll probably find several affordable life insurance plans with level premiums that stay the same for the term. Locking in premiums while you're young is one of the best ways to minimize costs.
- Stage or ladder your policies: As expenses like mortgage payments, college tuition, and childcare decline over time, you may not need as much insurance in 30 years as you do today. With some carriers, it may be possible to buy several overlapping policies to provide decreasing coverage over a longer time frame. Note that currently with Ethos, you can only carry one plan.
If you use this strategy, plan ahead by considering how much coverage you need today compared to later in life. Then, you can front-load your coverage by buying both a 10-year term policy and a 30-year term policy. When the 10-year term expires, you'll already have coverage in place at a low rate for the longer term.
Take advantage of employer-provided group life insurance but consider a supplemental individual term policy: Employer-sponsored group life insurance provides coverage based on a multiple of your annual salary. You may have the option to buy more insurance through your job, but remember that those policies terminate if you leave your company. Premiums on optional insurance are also age-dependent, so unlike the lowest term life insurance premiums on an individual policy, they increase over time, and you'll end up paying more as you reach different age brackets. And for longer-term policies, you'll likely find a better deal with a company like Ethos, plus the coverage stays with you when you change jobs.