7 Steps to Finding Cheaper Life Insurance in 2024
Discovering an affordable life insurance policy with the right amount of coverage is a common concern for buyers.
Thankfully, its a lot easier than most people expect.
And let's be honest, we can all appreciate a good deal!
If you’re looking for cheaper life insurance options in 2024, here are a few steps you can take to find the least expensive coverage to suit your needs.
Here’s what we'll cover in this post:
Quick Article Guide
Here’s what we'll cover in this post:
1. Don’t Wait
It’s easy to procrastinate when it comes to purchasing life insurance. All of the different policy options make it confusing to navigate and understand what will work best for your lifestyle. Even though you may be confused and overwhelmed, it’s important to buy life insurance early in your life. If you plan on getting married or having a family, life insurance is a necessity.
Insurance companies assume younger policyholders are less likely to make a claim. With excellent health and a long life ahead of them, younger policyholders are considered less of a risk to insurers. Insurance companies also hope to make more money off of your policy. The longer you hold a policy, the more money the company will make.
If you feel as though life insurance will be an important piece for your financial pie, you should start the research process today. By purchasing a policy when you’re younger, you will more likely receive less expensive life insurance.
2. Calculate the Total Amount of Coverage you will Need
Many insurance calculators may overvalue your total insurance needs. This can lead you to purchasing a policy you may not be able to afford.
Instead of purchasing a life insurance policy based on online calculations alone, take the opportunity to completely review your insurance needs. You should start by reviewing the policy you receive from your employer. You may feel this is enough coverage for your needs, but you may need a little bit more depending on your financial situation.
Then determine the total amount you will need to financially protect your family if something happens to you. You should include all of your debt and final expenses as well. If you are unsure of the coverage you will need to support your family, check this article out to calculate your total insurance needs.
Determining a specific amount you will need will help you find the most cost-effective life insurance policy for your financial situation.
3. Compare Policies
It may be time-consuming to compare multiple insurance quotes, but doing so could result in the difference between an affordable and an unaffordable policy. To their detriment, most people choose not to spend the time researching policies.
You may also consider working with an insurance expert, such as a JRC Insurance expert. Insurance experts have the knowledge and expertise to help you find the best quote for your individual situation.
They have extensive knowledge of multiple insurance companies’ criteria and specifications for approving new policyholders. Working with an insurance expert can help you save time and money.
If you decide to do your own research, you may want to avoid local insurance agents or agents that work directly with one company. These agents tend to have their company’s best interest in mind and not your own.
You will also want to review the financial stability of each company you’re considering. Purchasing cheap insurance can be a bad deal if the insurer isn’t financially stable. You can review the financial health of insurance companies with sites such as AM Best. This insurance rating agency offers up-to-date information about the financial well-being of most insurance providers.
4. Pay Annually Rather than Monthly
Most insurance companies will give you a discount if you pay your premiums annually. They do this because the administrative costs to collect monthly premiums are higher than collecting on an annual basis. Also, like most businesses, insurance companies like to have cash on hand. It’s worth it to their bottom line to incentivize you to pay in advance.
Insurance companies tend to give policyholders a 2% to 8% discount for paying annually. When shopping for a policy, ask the insurer about discounts for paying the entire year upfront.
Not only will paying annually potentially yield a cheaper life insurance policy, but it will also give you peace of mind knowing you won’t have to pay your life insurance premiums for another year.
5. Start with a Term Policy
There are two types of life insurance: term life insurance and permanent life insurance. Term life insurance offers coverage for a set amount of time - often 10, 15, 20, 25, or 30 years.
Permanent life insurance provides coverage for your entire life and builds a cash value that you can borrow or withdrawal.
The premiums for permanent life insurance tend to be higher than premiums for term life insurance policies, especially if you’re purchasing a policy at a young age. Consumers may be swayed to purchase less coverage than they need if they decide to go with a permanent policy. This could leave their family in financial distress if something happens to them.
An alternative option is to purchase a term policy and then convert it to a permanent policy at a later time. For example, if you find you need coverage past the term you selected you can buy a convertible policy. This type of life insurance policy allows you to gradually switch your term policy to a permanent policy as your income grows. This is a less expensive option than buying the policy outright.
6. Bundle your Coverage
Bundling your auto, home, and other insurance policies can be a good way to receive discounts on your coverage. Take the time to review all of your insurance policies and compare rates with several different insurers. Ask each insurance company if they offer savings for bundling your policies.
This may take a little bit of work upfront, but the payoff could be significant.
7. Make your Health a Priority
Health problems make it challenging to purchase an affordable policy. Conditions such as high blood pressure and diabetes are among the health concerns that can raise your life insurance rate. Another common concern for insurance companies is weight. Even if you are only slightly overweight this can impact your premiums.
If you have a pre-existing health condition or other health concern, underwriters want to see you making a consistent effort to improve your health.
Methods that insurers consider to be making an effort may include regularly taking your medicine or losing weight. By showing an insurer you’re improving your health, they may be more willing to lower your premium amount.
The Bottom Line
Taking the step above will help you find a cheaper life insurance policy. It may take a little effort and research, but taking the time now to find a suitable policy can save you hundreds, maybe even thousands, over the course of your life.
At JRC Insurance Group, our agents are experts with multiple years of experience. We are appointed by dozens of top-rated life insurance companies and our agents are not pushy salespeople. Our agents do not have quotas; we’re here to help.
We have helped hundreds of clients and we can help you too. Our passion is finding our clients affordable life insurance coverage to protect their families. Give us a call today, Toll free: 855-247-9555, or request a free quote here.
Personal Finance Writer
Ashley, both a published author and content creator, explores topics related to financial planning, wealth management, and insurance. Her articles have been featured in a range of publications, including Forbes and Yahoo! Finance.