Looking for a deal on life insurance? First, some good news: It probably costs less than you think. A recent study found that most people overestimate annual life insurance costs by 300%.
You can save even more by being smart about how you buy and the type of policy you choose. Here are some tips to help you get the best price while making sure your family is covered down the road.
Buy life insurance sooner rather than later
This is one of the best ways to get a good deal, because life insurance may never be cheaper for you than it is right now. Premium costs increase every year you get older, so buying while you’re young is a great way to save money on life insurance. If you’re also healthy, applying now means you avoid the risk that a future health condition could make life insurance more expensive or even prevent you from qualifying at all. And once you’re approved, your rate is locked in for the full length of the policy, ultimately saving money on life insurance.
Buy term life insurance
Term life is the most popular type of life insurance, partly because it’s so affordable. Unlike whole life insurance policies, which offer lifelong coverage and have cash value, term plans are shorter and more flexible, usually lasting 10 to 30 years. Both policies pay out a lump sum to your family to spend as they wish if you die while your coverage is active.
Whole life is much more expensive than term life because it lasts for your lifetime and also builds cash value over time. Term life’s flexible and budget-friendly options make it a solid choice for most people, especially if you’re watching your wallet.
Skip no-medical exam options
Being healthy can help you save in other ways, too. If you’re willing to take a medical exam, a traditional term policy is typically cheaper than simplified issue plans, which don’t require an exam and offer faster approvals.
Fidelity Life’s RAPIDecision® Life policy is designed to be convenient as well as affordable. With rates comparable to traditional term life, these policies use accelerated underwriting to help many people get covered the same day they apply. You have up to six months to take an exam, and in some cases, we can waive your exam altogether.
Check rates online
Today, online quoting makes it easy to compare costs among insurance companies for the best deal possible. You might already be familiar with the tools that car insurers provide to compare quotes, so that you get the best deal. Similarly, at Fidelity Life, we offer personalized pricing in less than a minute based on five simple questions. Our policies are designed to be simple and affordable for everyday American families, with premiums starting at just $13 a month.
Quit smoking
Your smoking habits play a big part in how insurance companies decide your rates. Smoker premiums tend to be much higher than nonsmoker rates, because they represent a much higher coverage risk.
If you quit, it typically takes at least a year to qualify for nonsmoker rates, provided you’re in good health otherwise. While it’s not the best idea to delay coverage, you can always ask your provider if they’re able to requalify you with nonsmoker rates down the road.
There’s no time like the present to get a good deal on life insurance. Still have questions? We’re always here to help. Get in touch to talk to one of our agents or start your quote online.
At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.
