Tips to Get Cheap Life Insurance in 2016

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Tuesday, 06/12/2016 10:12

Here are the key tips to get the cheapest life insurance. Get it and have the best choice.

Tips to Get Cheap Life Insurance in 2016

1. Get several quotes

As with most purchasing decisions, finding many options will give you an edge. Most people don’t bother obtaining multiple quotes because it’s time-consuming. However, using an online life insurance quote tool is the quickest way to get quotes from several reputable insurers at one time.

2. Avoid riders and additional insurance

If your bottom-line goal is to find the cheapest insurance possible, you’ll want to say no to any add-on insurance or policy riders. Examples of add-ons include the option to purchase child policies or more insurance at a future date without going through the medical exam process again.

You can think of riders as à-la-carte options to supe up your policy. Riders can be purchased to accelerate your death benefit and pay you out for medical expenses if you have a terminal illness but haven’t passed away yet. Term conversion is another rider that gives you the option to convert your term policy to a permanent policy.

A caveat: Choose your coverage wisely. If you need coverage for your kids, then it’s OK to pay for the extra coverage. Also, if you’re someone who is on the fence between term and whole life coverage, the term conversion rider will give you that option down the road for a few dollars per month.

There is no one-size-fits-all method to buying life insurance, but having as few riders as possible will keep your rates low.

3. Say no to one-company local agents

Experts are available to help you through the process of purchasing life insurance, and many of the largest insurance companies have their own networks of agents. If you need the human touch, I would avoid one-company local agents because they usually represent the interests of their own company, which essentially lowers your options. If they happen to represent the cheapest and the best life insurance company, that’s another story!

A good strategy is to seek out a financial advisor, like Edward Jones, that covers several different insurers. This way, your advisor will be more impartial even though he or she has personal preferences.

4. Don’t wait

Generally speaking, the younger and healthier you are, the cheaper your insurance costs will be. If you’re in your mid-20s and are thinking about lifestyle changes like marriage and kids, it can pay off to buy a policy now rather than waiting. The biggest reason is that you never really know how your health will change at any time.

5. Bundle coverages if you can

One way to receive discounts on your quoted life insurance rate is to bundle coverage with your car, home, or other insurance. Large insurers like State Farm can be fairly cheap life insurance providers because they give you the most options to bundle.

A good strategy to maximize your bundled discounts is to review all of your insurance at the same time and pick the company that can give you the best deal for switching. This is more work in the short term, but can pay huge dividends and offer great savings in the long run.

6. Check the financial stability of the insurer

Cheap life insurance can be a very bad deal if the insurer isn’t financially healthy enough to pay out when the time comes. After you get a few online life insurance quotes, always check the financial reputation of the insurer so you don’t pay premiums for years only to find out the company can’t pay out any claims.

A.M. Best is an insurance rating agency and provides up-to-date information on the financial health of most life insurance companies. Use them to check on a company, especially if you haven’t heard of them or if they’ve started operations within the last 10 years.

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Elly Green

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