Here’s How to Find the Most Affordable Life Insurance Options

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Life insurance costs have ballooned recently. Here are some practical steps to bring them back down. 

Life insurance is an important part of financial planning, ensuring that family and friends have the necessary resources when they may need it most.

Unfortunately, life insurance costs have risen along with nearly every other expense over the past few years. The good news is that there are a few ways you can make it more affordable. Here are four ways to do it.

1. Find insurers that require a physical exam

I’ll usually pay for convenience when it’s an option, but it’s not the best approach if you’re looking for affordable life insurance.

While the cost of no-exam life insurance policies can sometimes be competitive with ones that require a physical, you’ll usually pay more because the insurer is taking on additional risk by not knowing the state of your health

As such, you’re more likely to find affordable life insurance if the policy requires you to get a physical exam first.

2. Shop around for the best policy

There’s no way around it: Shopping around for a life insurance policy isn’t exactly the most exciting thing to do with your time. But it could save you significant money!

Just as with buying furniture or a new car, spend some time looking closely at what you’re about to purchase to ensure you’re not buying something you don’t need or paying more than you should.

One of the best ways to do that is to comparison shop. It’s easier than ever to get policy quotes from insurance companies to see which is the best for you. And because you’ll likely spend years paying for your policy, spending a few minutes comparing policies could save you lots of money throughout your coverage period.

3. Bundle your insurance policies

Advertisements for bundling insurance policies are everywhere these days. Part of the reason is that insurance companies want to upsell customers on new services, but they can also be a good deal for customers.

Insurance companies benefit from customers holding multiple policies (such as life, home, and auto), and once they’ve signed up, they’re likely to stick around. Offering bundled insurance discounts helps them lock in customers for years, and, in some cases, they can offer lower rates because of this.

4. Look for term life insurance

One of the best ways to keep insurance costs lower is to sign up for term life insurance instead of whole life insurance. A term policy is for a set period, while a whole life insurance policy has an indefinite time frame.

Because term life insurance expires after a set period, insurers often charge less for these policies.

Most people only need life insurance for a set period to help their family pay off debts when they die or to replace the income they provide their family. But as your life situation changes — including paying off debts or your dependents growing older — you may not need life insurance.

The good news is that it’s possible to find cheap life insurance options. By spending a little time comparing policies, you’ll likely be able to find term life insurance that fits within your budget. And if you bundle it with your other insurance policies, you may be able to get it for cheaper than you expected.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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