Life insurance can be a great way to provide financial security for yourself and your loved ones, but many people don’t have a policy. We decided to uncover who’s missing out on coverage and why. We’ve dropped our findings below—and busted a few life insurance myths along the way.
Cost Is the Number One Reason People Avoid Getting Life Insurance
Using Pollfish, we surveyed 500 people living in the US age 18 and older. We asked eight questions about life insurance. The people we surveyed were from all different income levels, professions, and education levels.
More than half (52%) of respondents don’t have life insurance.
Of those, 38% said they don’t even want a policy. But should they buy a policy? That depends. Whether you need life insurance and the coverage level you need depend on a lot of factors. Here’s our rule of thumb: if a loved one would be in a tight spot financially in the event of your death, you probably need life insurance.
The good news is…
Most people believe they can get life insurance.
Of the people who don’t already have a policy, 71% believe they can get life insurance. And that’s a good thing. But we think that percentage could be higher if more people learned about their options. For example, 21% of respondents believe their age disqualifies them from buying a policy, and 13% believe smokers are uninsurable.
The truth is, plenty of insurance companies specialize in covering older adults or tobacco users at reasonable prices. Other insurers have made a name for themselves by insuring people with preexisting conditions. Some even offer insurance that isn’t based on your health at all.
Long story short: Whatever your situation, there’s probably an insurer out there that wants your business—if you decide to give it to them.
Most people know age affects premium rates.
Three-quarters of respondents correctly identified that the younger you are when you buy a policy, the cheaper it will be. Well done, survey-takers! Age is the most critical factor in nearly all insurers’ rates. Other factors include your gender, health, lifestyle, occupation, and whether you smoke.
Cost is the greatest barrier to life insurance.
Nearly all (81%) of people without life insurance said cost stops them from buying a policy. And, of the people who believe they can’t get coverage at all, almost half (47%) chalk it up to cost. But the truth is, life insurance can be super affordable—under $10 per month for some applicants—if you buy term life.
People who have life insurance think it’s affordable.
Of the people who have coverage, 20% say life insurance is “very affordable,” 65% say it’s “somewhat affordable,” and just 14% say it’s “difficult to afford.” Among those who don’t have life insurance, however, 44% say it’s “difficult to afford,” and 42% say it’s “somewhat affordable.”
While it might seem that those who have coverage must be well-off, 61% of policy owners who think life insurance is affordable identified as lower or lower-middle class.
Shoppers consider price before anything else…
Not surprisingly, the number one factor shoppers consider when comparing companies is pricing, according to 79% of respondents. Unfortunately, many insurers don’t offer online quotes. You may have to fill out several applications or use an online quote aggregator to compare rates among several companies.
…But cost isn’t the only factor.
Of course, price isn’t the only factor consumers consider when shopping for life insurance—nearly half (49%) mull over what types of policies a company offers, for example. Most companies sell term life, but many have whole, universal, variable, and final expense insurance too.
Also important are customer service and reviews. Buyers consider these factors at 26% and 25%, respectively. Next comes the riders (add-ons) a company offers (7%), as well as a company’s commercials or other advertising (7%). Finally, some respondents mentioned they chose a policy because that’s what their employer offered as part of their benefits package.
Cheap Life Insurance
Before we jump into our top 10 companies list, we would like to point out that the list changes every so often. Certain companies will lower their rates in order to attract more business. However, new companies will soon follow suit. So, the top 5 companies today may not be the top cheap life insurance companies down the road.
Also, just because one company offers cheap life insurance for a certain age, does not mean that same company is best for a different age. Each company has its own niches that it focuses on. Take this top 10 best cheap life insurance companies list as more of a general guide.
Top 10 Cheap Life Insurance Companies
The following cheap life insurance quotes are for a preferred plus 40 year old woman from A- rated carriers and higher. Rates are for informational purposes, are subject to change and must be qualified for.
|Mutual of Omaha||11.99||17.24||23.14||29.05|
At any given time the above list can change based on your specific health, age, gender, lifestyle, etc. That is why the best way to find the cheapest life insurance rates is to give us a call and let us introduce you to the companies that best suit your specific circumstances.
You see, every year, hundreds of thousands of people search for cheap life insurance online but they never really know what to look for. At TermLife2Go, we value the pursuit of knowledge as a key ingredient in finding our clients the cheapest life insurance available.
Our strategy is to intimately familiarize ourselves with the unique niches of the top companies in order to align each client with the specific company best suited to that client’s health, lifestyle and financial objective, which in turn results in applying for, and obtaining, the lowest prices for our clients.
What does that have to do with cheap life insurance?
The principle connection is that when you apply with the best company tailored to your specific health and lifestyle profile, you greatly increase the chances of getting the best health rate class and cheapest life insurance — for you.
We have composed several “best of” lists based on the company and the type of policies offered. For example, you can check out our articles covering:
- Cheap Life Insurance Rates
- Cheap Whole Life Insurance
- Cheap Life Insurance Without an Exam
- Cheap Life Insurance for Seniors
Choosing the Right Life Insurance Policy
Before we head into the main tips, we should point out that the process of life insurance always begins with looking inwards. Often, we talk about your life insurance ‘needs’ but what exactly does this mean?
Well, it starts with the reason you chose to one of the different types of life insurance policies in the first place.
Depending on your motivation, this is likely to change the policy you need as well as the coverage required.
For example, are you looking to cover:
- Education for children?
- Estate taxes?
- Future of your business?
- Retirement income?
- Final expenses?
When someone is looking to cover their final expenses and burial costs, they will be looking for a vastly different policy contrasted with someone using life insurance for covering a home mortgage.
This is why we concentrate on the uniqueness of life insurance so much because it is no good copying a friend and then hoping for the best. Instead, you have to choose a policy that is right for you, whether it be term life vs whole life insurance.
Life Insurance Background Check
Assuming that you don’t need to choose a guaranteed issue life insurance policy, you will need to provide extensive details about yourself with a particular focus on your health.You need to answer these questions with honesty. After the company receives your answers, they will almost certainly conduct their own research into your Motor Vehicle Records, MIB Medical Information Burea, and Prescription Database. So honesty is very important!
When applying for cheap life insurance, you should be ready to answer questions truthfully in the following categories:
- Family History
- Health Conditions
- Bad Habits
- Credit History
- Driving Record
In truth, it would be fairly easy for the insurance company to obtain this information even without your help so there is no reward to being dishonest. With health problems, you should talk about everything no matter what you deem ‘insignificant’; for example, pre-existing conditions such as high cholesterol, high blood pressure, etc.
Ultimately, the insurance company is assessing how beneficial it would be to cover you so answer honestly and get an honest quote in return.
Apart from applying with the right company best suited to you along with the right policy based on your specific need and strategy, there are some more factors listed below that you should be familiar with in your pursuit for cheap life insurance.
- Shop Around
- Buy Term Life
- Pick 10 Year Term
- Keep Your Driving Record Clean
- Don’t Bundle
- Pay Annually
- Kick the Habit
- Say No to Riders
- Cut Out Adventure Sports
- Choose to Take an Exam
- Avoid Genetic Tests
- Stay Out of Bankruptcy
- Buy Young
- Don’t Smoke Weed
- Stay out of Jail
- Travel Safely
re: Tips – In addition to the steps you should be taking on your journey to cheap life insurance, we will also be pointing out some things you should avoid.
As something we have said numerous times on this site, it is something we are very adamant about because it makes sense. If you were to buy a new phone, lawnmower, air conditioning unit, or any other item, you would search around to see who has the best deal. With life insurance, why should this be any different?
For the same product and coverage amount, different companies will have completely different rates depending on your age, location, gender, occupation, health, and more. With this in mind, you should be looking to work with an agent or agency who has access to dozens of the best life insurance companies in the U.S.
At first, you might think ‘well, how different can two companies be in terms of pricing?’ but you would be surprised. Even if you save $30 per month, this is an extra $360 at the end of the year. If you save double this amount, you can save over $700 just by shopping around – just think how useful this money could be!
When looking for agents, experience is a vital factor especially if you are trying to get life insurance with a health condition. As soon as you are categorized as “high risk life insurance” you need someone experienced in your corner who knows the market and how to find the best deals regardless of your health.
Looking for a bargain?
If you are looking for a life insurance bargain, DO NOT choose the Wrong Agent – On the topic of agents, we should point out that there is a simple mistake that many people make – choosing a captive agent who represents only one insurance company, such as State Farm. As good of a company as State Farm is, the life insurance offerings it provides are seldom the best choice in terms of price.
Discounted life insurance
And you will not be able to find life insurance at a discount from what someone else is paying to the same company at the same health rate class. The reason being, the state insurance commissions require companies to charge the same premium to everyone that falls into a specific health category. This helps eliminate potential bias and discrimination.
If you need life insurance solely for the death benefit then term life is going to be cheaper than permanent coverage. A healthy 30 year old can get a 30 year term million dollar life insurance policy for less than $800 a year.
Here are a couple tips on choosing the right company and policy. You want to make sure that when you buy life insurance, the term policy has a conversion option. Some companies do not offer a conversion option (all of the cheap life insurance companies in our list above include a conversion option).
What is a conversion option?
A conversion option is a life insurance rider that allows the owner to convert all or a portion of the term coverage into a permanent life insurance policy.
The primary life insurance benefit is that if you exercise this option you convert the policy with no proof of insurability, i.e. no medical exam or health questions. You simply convert and lock into the health rate class you originally qualified for.
For example, if you have a 20 year term and 15 years into the policy you get cancer. You might consider converting all or a portion of the policy to permanent life insurance so you can stay insured for the rest of your life, or so that you can do a viatical settlement.
We put together charts showing cheap 10 year term life insurance rates. We also include rates for 20 and 30 year term policies. If you truly want cheap life insurance quotes, choosing a 10 year term will be the better option. If you need a longer term policy, consider layering the policies.
Here are some examples of cheap life insurance quotes for both exam and no exam policies. These sample monthly quotes are based on a preferred plus male as of February 19, 2017 from A rated carriers and better.
|20||13.92||9.62||18.27||13.13||24.5 (PP Only)||21.29|
|30||13.92||9.62||18.27||13.13||24.5 (PP Only)||21.29|
|40||16.25||11.71||23.75||18.20||29.75 (PP Only)||29.06|
|50||23.81||27.67||45.70||41.76||78.31 (PP Only)||75.51|
|60||68.32||60.13||127.32||112.83||227.55 (PP Only)||214.36|
Not only will driving safely be good for your auto insurance, it will help you keep your life insurance price down as well. If you have a couple of speeding tickets to your name, then a life insurance provider will see you as a risk. When your record is squeaky clean, you’re more likely to be eligible for the cheapest life insurance rates.
Be aware, if you have a DUI on your record (or two), a history of speeding tickets, or reckless driving, you do not want to apply with just anyone. There are specific carriers that cater to offering cheap life insurance with a DUI.
Bundling your life insurance with your home and auto insurance is not a good idea. You can lock into your cheap life insurance for the life of the policy but that is not true of home and auto insurance.
What if you want to shop your home and auto coverage? Do you think you can simply get a brand new life insurance policy?
By keeping your life insurance separate you can avoid being stuck in home and auto insurance where your premiums are not fixed.
If you want to lower your price on your cheap life insurance even more then choose to pay annually, as opposed to monthly, quarterly or semi-annually.
Some companies offer discounts as high as 10% per year if you pay upfront, rather than stretch out your payments over the course of the year.
Ever heard the phrase “smoking kills”? Well, so have life insurance providers, and that’s why smoking can jump your life insurance costs sky high. The best thing you can do to lower the price of your life insurance is to quit smoking. Until you quit smoking, you’ll never qualify for the cheapest term life insurance rates.
For those of you who know they will never quit smoking, your best bet is to apply with the most nicotine friendly life insurance company. Only by applying with the company that is most lenient on nicotine users will you stand a chance of finding cheap life insurance for smokers.
Helpful tip: If you need help to stop smoking, try bananas! The potassium boost will minimize your cravings.
Updated: There is one rider that will actually help get you cheap life insurance. It is called the income protection rider. Rather than a lump sum death benefit payout, the rider stretches out the death benefit payout over a longer period, say 10 years or 20 years. That way your beneficiary does not get a blank check, but rather has time to grow into their new income. And as an added benefit, the rider actually lowers your life insurance premium payment.
Back to original article…
As you may have seen, life insurance riders can add some great benefits to your policy and add an extra layer of protection. Unfortunately, they also increase your premiums and today we are trying to show you how to find cheap life insurance. If you need the cheapest policy possible, it makes sense to stay away from most riders.
For example, the Return of Premium rider is very clever because it allows you to receive all of your premiums back at the end of a term life policy once it has expired. However, the premiums can double just with this one rider attached.
The good news is that more and more companies offer living benefits at no additional cost. Some examples of living benefits are the terminal illness rider, chronic illness rider and critical illness rider.
You might be in the best heath of your life, but if you skydive or basejump regularly, life insurance companies may charge you a premium. If you’re really interested in the lowest rates possible, you can give up your dangerous hobbies.
Okay, if you really love your hobby (and we’re sure you do), then the alternative is to shop around. Don’t just apply for a life insurance policy with any old company.
Find one that works well for your adventure sport. If you don’t know how to find the best life insurance provider for your lifestyle, then contact TermLife2Go and we’ll help you find it.
Each company has specific hobbies they will allow and not allow. Give us a call so we can direct you to the cheap life insurance for dangerous hobbies specific to your particular dangerous avocation.
As much as you may dread the life insurance medical exam, submitting to the exam is the best way to secure cheap life insurance.
If we look from the perspective of the insurer, they need to be sure that their “investment” is safe for a certain period of time. If they insure someone and they die the day after, they are paying out a huge amount of money for very little in return. Therefore, they need to know that you are likely to survive for a set period of time.
How do they do this? Normally, it comes from the medical exam so this will be a key step in securing lower premiums.
If you take the medical exam and prove that you are in good health, suddenly you become a minimal risk so you won’t have to pay too much for your coverage.
For one reason or another, many people are put off of medical exams but they are very simple. After noting your height, weight, and blood pressure, they will take a small sample of your urine and blood. Assuming everything comes back well, your premiums will be lower than they would have been without an exam.
Consider Accelerated Underwriting
The good news for those who want to avoid an exam is innovative accelerated underwriting life insurance. More and more companies are coming up with automated underwriting practices that greatly increase your time from application to approval, without requiring a life insurance medical exam.
You may think that you are 100% healthy and then—bam! A test result comes back showing you have high blood pressure, cholesterol issues or something of that nature. Sure, there may be a reason behind a sudden spike, but that’s not going to matter to a life insurance company.
While we don’t recommend staying in the dark about your medical state, it’s sometimes better to apply for a cheap no exam life insurance policy and then find out later what latent health issues you may have.
What does health and bankruptcy have to do with one another? Well, usually not a lot. However, if you file for bankruptcy, then a life insurance provider may see you as a risk, and your life insurance policy may cost more.
If you have already filed for bankruptcy, then don’t worry; TermLife2Go is there to guide you through the process of applying for life insurance. We will help you find cheap life insurance after a bankruptcy.
The price of your life insurance plan depends on a lot of factors, and if you know what you’re doing, then you can locate cheap life insurance companies to help you find the lowest cost coverage possible. If you don’t, well you may wind up paying more than you should.
Let’s face it—the older we get, the more our health deteriorates. Insurers consider your life expectancy, which is why it’s important to buy your life insurance when you’re young, so you can lock in at the lowest life insurance rates possible. The more health problems you develop over time, the harder it is going to be for you to get the cheapest life insurance plan possible.
If you live in California, Colorado, or Washington, then it may be legal, but that doesn’t mean it’s good for your life insurance rate. Despite the law saying you can do it, life insurance providers may still consider smoking marijuana as a reckless activity. This can cause your rates to go up.
What about medical marijuana? The answer to this will vary from one life insurance policy provider to another, but most will see regular consumption of cannabis as a negative thing.
If you are truly looking to secure the most affordable life insurance policy, then you should consider giving up marijuana.
And if you smoke the wacky tobacky, there are specific companies to apply with to find the cheap life insurance for marijuana users.
A prison record will haunt you for life—even when it comes to getting approved for a life insurance policy.
If you have already been to prison, then a life insurance company will want to know more about things like:
- The crime(s) you committed
- How long you were in prison
- When you last in prison
- If you are still on parole
- Your last medical check-up
If you have been to prison but still want to find the most affordable life insurance policy for your situation, then don’t hesitate to call TermLife2Go. We will help you find cheap life insurance with a felony.
Most people avoid traveling to countries of political unrest, but some people love it. If you like traveling to developing countries, then you may have to pay a premium. Life insurance companies aren’t too keen on countries that have:
- Health outbreaks
- Economic issues
- Political unrest
- Regular bombings
- High murder rates
- Risk of destruction due to natural disasters
To elaborate on the last point, San Francisco is on a major fault line. However, most buildings are earthquake proof and thus, the damage will likely be minimal even in a big earthquake. Nepal, however, has shoddy construction, which led to devastation, some of which would not have occurred in an earthquake-prepared country.
If you haven’t traveled yet, but plan to, then perhaps you should get a life insurance policy prior to making any concrete travel plans. This may give you a better chance at getting the cheap life insurance for dangerous travels.
Life insurance can be a complex financial product, but it seems that for many people, it may all come down to cost. Unfortunately, a recent Life Happens study shows that over half of Americans overestimate the cost of life insurance by more than three times.1 If you think you need life insurance, don’t let yourself become discouraged before learning what your rates might be. Get quotes from several insurers or work with an agent who can point you toward low-cost, quality coverage that fits your needs.
Do you have life insurance? If not, what’s stopping you? Let us know in the comments below.
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