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:
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.
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:
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.