Global Privacy Signal Detected
Skip to main content

How To Keep Your Life Insurance Affordable

Purchasing a life insurance policy ensures your loved ones have a financial safety net after you pass away. However, the additional cost may feel like a burden for many families.

The good news is life insurance does not have to break the bank. There are several practical steps you can take to keep your life insurance affordable without sacrificing the level of coverage you need. By understanding the factors influencing life insurance premiums and implementing cost-saving measures, you can easily find a policy that fits your budget. Get started now with these tips.

1. Choose the Right Type of Life Insurance

As you begin to explore your life insurance options, it’s essential to understand the different types of policies available. When affordability is a concern, term insurance tends to be a popular choice. Term policies provide coverage for a specific period, such as 10 or 20 years. Due to this limited coverage and the lack of a cash value, term policy premiums are significantly lower than premiums for permanent life insurance.

If you’re looking for lifetime coverage, permanent life insurance may be appropriate for you. However, permanent policies come at a higher cost. If you’re unsure which type of insurance fits your needs and budget, an insurance agent or financial professional can help.

2. Start Early to Lock in Lower Rates

Age is one of the critical factors that influence life insurance premiums. Purchasing a life insurance policy when you are younger and in good health can substantially reduce costs. As you age, the risk of developing health issues increases, and insurance companies adjust premiums accordingly.

When you purchase life insurance early, you can lock in lower rates for the future, regardless of changes to your health or lifestyle. Taking action now can help you secure long-term protection at an affordable rate.

3. Maintain Healthy Habits

When determining your rates, life insurance companies typically consider various health factors, including your body mass index (BMI), cholesterol levels, and blood pressure. You may be able to qualify for lower premiums by maintaining a healthy weight, eating a balanced diet, and exercising regularly. Avoiding tobacco and nicotine products can also make a big difference in affordability.

In addition to these basic health habits, it’s essential to prioritize regular check-ups and screenings. By proactively managing your health and addressing any potential health issues early on, you can improve your insurability and potentially qualify for lower rates.

4. Opt for a Medical Exam

While a simplified life insurance application may seem easy and convenient, choosing to forego a medical exam can cost you in the long term. Insurers rely on the information obtained during the exam to assess your overall health and determine risk. 

The carrier can offer lower rates when the insurance underwriter has a comprehensive view of your health. Although it requires additional time and effort, opting for a medical exam can result in substantial cost savings over the life of your policy.

5. Choose a Lower Death Benefit

Selecting a lower death benefit amount is a simple way to reduce your life insurance premiums. When the insurance carrier is responsible for paying a smaller amount, the company takes on less risk and can therefore offer coverage at a lower cost. However, it’s critical to use caution when selecting your coverage amount. While a lower death benefit may save you money in premiums, ensuring that the policy still provides adequate financial protection for your loved ones is essential.

When determining your death benefit needs, consider factors such as your outstanding debts, mortgage payments, future education expenses, and income replacement needs. Then, choose an amount that is as affordable as possible while still providing sufficient coverage.   

6. Shop Around and Compare Quotes

When you’re looking for affordable life insurance, it’s essential to shop around and compare quotes from multiple insurance providers. Each company has its own underwriting guidelines and pricing structure, which can result in significant differences in premiums for the same coverage. By gathering quotes from various insurers, you can identify the companies that offer competitive rates.

To get started, consider contacting reputable insurance agents or using online comparison tools. When comparing quotes, carefully review the coverage details, policy terms, and any exclusions or limitations that may apply. 

7. Take Advantage of Discounts and Incentives

Some insurance carriers provide discounts and incentives that can help lower life insurance premiums. For example, you may find a carrier offering a discounted rate for maintaining a healthy lifestyle, such as participating in wellness programs or meeting specific health criteria.

Paying your premiums annually instead of monthly may also score you a discount. In addition, bundling multiple insurance policies with the same provider may result in cost savings. As you explore your options, do not hesitate to ask each carrier you’re considering whether they offer discounts or incentives and how to qualify.

8. Aim to Strike a Balance

As you search for affordable life insurance, remember the importance of striking a balance between cost and coverage. While you may be tempted to choose the cheapest policy you can find, doing so may not be the optimal solution.

Very low-cost policies may have coverage limitations or could be missing some essential features you need. Also, consider the carrier’s financial ratings. A low-rated carrier may offer inexpensive policies but could have trouble meeting its obligations when it’s time to pay out the death benefit.

Before purchasing an insurance policy, carefully review the policy terms, exclusions, and limitations and research the carrier’s rating and reputation. Taking the time to examine the policy thoroughly can help ensure it aligns with your budget and your coverage needs.  

Finding Affordable Protection for Your Loved Ones

Finding affordable life insurance is not about compromising on the level of coverage or cutting corners — it’s about being strategic and making informed choices. By implementing the abovementioned strategies, you can keep your life insurance affordable without sacrificing the financial protection your loved ones deserve. 

As you search for coverage, aim to choose a policy that is cost-effective yet meets your needs. If you’re having trouble finding an appropriate policy, consider consulting with an experienced life insurance agent or financial professional who can help you create a comprehensive coverage plan that fits within your budget.

Plan for your family’s future. Get a life insurance quote today.

Get a quote

Plan for your family’s future. Get a life insurance quote today.

Get a quote