A Way To Buy More
Life Insurance Is The Sound Of The Future.
Best Ways to Get More Affordable Life Insurance
Opt for affordable term life insurance, at least to start. There are two main types of life insurance: term life and permanent life. Both offer a death benefit if you pass away within the coverage period, but permanent life also has a cash-value component. Term life is the more affordable life insurance choice. Term life is a good option for people looking to get the most coverage for the least amount of money. People also choose to get a combination of both to ensure they have a large amount of coverage now (when they have kids or debt) along with lifelong coverage later on.
Buy coverage when you’re young and healthy. The best affordable life insurance is typically available when you’re young and healthy. By buying early, you may be able to lock in an affordable life insurance rate. Plus, you won’t have to worry about being unable to get coverage if you develop a health condition later on.
Get quotes from several insurers. Like anything else in life, it pays to shop around when it comes to getting affordable life insurance. An insurance agent or advisor can gather quotes from several insurers. He or she can also help you compare coverage so you get a great policy at a great price.
Look into group coverage from your employer. Group life insurance through a workplace is often subsidized in part by an employer. What’s more, you can often get a certain level of coverage without taking a medical exam. Definitely check out any employer-sponsored group coverage that’s available to you. Just know that this coverage goes away if your job does, so it helps to also have an individual life insurance policy that you own.
Ask about premium discounts. Some insurers offer premium discounts at certain coverage levels. So it might actually be cheaper to buy $250,000 of coverage than $200,000 of coverage, for example. Ask your insurance agent or advisor about any premium discounts.
See if you can save by paying upfront. Some insurers offer a discount if you pay the entire year’s premium in a lump sum (or in less frequent intervals like twice a year). If your insurer offers this discount and you have the money, opt to pay your premium up front instead of paying quarterly or monthly.
Lock in a renewal guarantee. A renewal guarantee lets you automatically renew your term life policy without the need to undergo a medical exam. You only pay more based on your age, not because of worsening health. This lets you keep your affordable term life insurance even if your health takes a turn for the worse.
Maintain (or work toward) being in good health. The best affordable life insurance typically goes to people who are in good health. And while there are certainly conditions over which you have no control, there are others that you can control. These include eating right and exercising to maintain a healthy weight, limiting alcohol use, managing stress and not smoking or using drugs. Definitely ask your insurer if you can retake your medical exam if you improve your health — you’ll often benefit from a lower rate for the rest of policy’s term.
Work with a specialized insurance professional if you have health issues and/or have been denied coverage. As a general rule, it’s best to undergo a medical exam for life insurance if you don’t have any health issues. By demonstrating that you’re in good health, you’ll be able to get the best affordable life insurance available. That said, there are options if you’re in less than stellar health or have been denied life insurance. One is to work with an insurance professional that specializes in higher-risk applicants. Another is to consider “simplified issue” or “guaranteed issue” life insurance, which typically let you skip the traditional medical exam and get life insurance more or less on the spot. Learn more about these options and what to do if you’re denied life insurance.
But you’re probably thinking about purchasing life insurance now. That’s a smart move, because the younger you are when you purchase your policy, the more money you can save on your premiums over time.
Putting off the life insurance decision could turn out to be an expensive choice. Here’s an example of how your life insurance rates may change by age:
Let’s say that you, like me, are a 38-year-old woman in excellent health. If someone like me were to take out a 20-year, $500,000 Haven Term policy, issued by MassMutual, I’d pay $25.92 per month to protect my loved ones. That’s $311.04 per year or $6,220.80 over the life of the policy.
Now let’s say you wait ten years. You’re now 48. You might no longer be in excellent health. You’d no longer need a 20-year policy, but you might go for a 10-year-policy, or for 15 years to get you closer to retirement age. To get a 10-year, $500,000 Haven Term policy you’d end up paying $41.86 per month if you’re in “good health” or $61.24 if underwriting classifies you are “average” health. That’s more than twice the cost per month.
When you’re considering life insurance, it pays to be an early adopter, and it’s also better for the financial health of your dependents. Term life insurance premiums are less expensive when you’re young and healthy. If you’re concerned about helping your beneficiaries cover things like your children’s college expenses and your own funeral costs in the event something happens to you, make a plan to get life insurance as soon as possible.
Choosing the best life insurance for your budget
There are a lot of different types of life insurance out there, and keeping track of all the different variations can be confusing. Here’s a quick overview of your options:
- Medically underwritten term life insurance: A good choice for people who are in generally decent health and want to save money on premiums. In many cases, you will need to complete a life insurance medical exam to finalize your coverage.
- Simplified issue term life insurance: A good choice for people who, for various reasons, don’t want to take a medical exam. Your life insurance rates will be a little higher because of the lack of insight the insurer has into your overall health, but you’ll still be able to protect and provide for your beneficiaries at a rate that’s less than permanent life insurance policies.
Permanent life insurance covers you for the entirety of your life and is more expensive than term life insurance. It includes a “cash value” element that can be borrowed against or used to cover life insurance premium costs. Permanent life insurance comes in two common types:
- Whole life insurance: Permanent life insurance that guarantees coverage for your entire life
- Universal life insurance: Permanent life insurance in which monthly premiums and insurance coverage can be customized over time
Term life insurance
Term life insurance comes well-recommended by financial experts because of its affordability. As the name suggests, this type of life insurance covers you for a set period of time (the “term”). Common term lengths are 10, 15, 20 and 30 years. Typically, this is during the years your family needs it most — until the mortgage is paid off or the kids are no longer financially reliant on you. Most policies come with guaranteed level premiums, which means your monthly life insurance premiums will remain the same for the duration of the policy.
Remember, even if you don’t have a partner or kids of your own, you should still consider a term life insurance policy. Becoming an insured person who can provide a death benefit to designated beneficiaries such as parents or siblings means taking the stress off your family and extended family as they deal with your final expenses or unpaid debts, including co-signed private student loan debt.
Term life insurance comes in a couple of different types:
Medically underwritten term life insurance
If you’re decently healthy, medically underwritten term life insurance is often one of the most affordable types of coverage. The premium pricing is customized to each individual and is based on factors like your age, physical health, gender and lifestyle choices such as smoking.
With Haven Life, you can easily apply online for this type of term life insurance. If approved, you can start coverage that day. In most cases, you’ll need a short medical exam to finalize coverage, which can be taken at a time and place that’s convenient for you. There are some cases where a medical exam will not be needed thanks to advancements in underwriting technology, which is determined based on eligibility and the information in your application. It’s essential to be honest when completing your term life insurance application. The issuance of the policy or payment of benefits may depend upon the answers given in the application and their truthfulness.
Simplified issue term life insurance
Simplified issue life insurance is a type of term life insurance policy that does not require a medical examination or detailed medical underwriting. These policies are typically limited in coverage amounts, and it might be hard to take out a policy of more than $500,000.
A Haven Term Simplified policy, issued by MassMutual subsidiary C.M. Life, can help you access no-medical-exam life insurance. (Remember: It’s essential to be honest when completing your term life insurance application. The issuance of the policy or payment of benefits may depend upon the answers given in the application and their truthfulness.)
To buy Haven Term Simplified (or any type of simplified issue life insurance policy for that matter) all you’ll need to do is complete a short online application to determine eligibility. Remember that the convenience of avoiding medical underwriting comes at a cost because, by definition, the insurer knows less about you and your health.
As you’ll see below, many simplified issued policies cost at least twice as much per month than medically underwritten policies.