Affordable term life insurance is ideal for most individuals. While it’s true that whole life insurance covers you for your entire life and provides a savings component, most Americans aren’t looking for those benefits. With term life insurance, there are no extra costs for benefits you don’t want or need, i.e. savings components, and with no extra costs, you pay less. The Term life insurance is cheaper and gets to the point. It provides financial benefits to your beneficiaries in the event of your death. Period.
However, there are certain factors you should look out for when selecting affordable term life insurance. Those factors are as follows:
Buy early. The earlier you select an affordable term life insurance policy, the more affordable the policy will be. Life insurance companies are more apt to offer affordable insurance premiums to younger people because they are less risky to insure.
Make sure the term life insurance policy offers guaranteed renewals. When it’s time to renew your affordable term life insurance policy, you can actually be denied or forced to pay higher premiums than before. Insurance companies implement these policies because, well, you’re getting on in years and becoming more of a risk to insure. While you can’t always get around paying the higher premiums, you can get around being denied. Simply select a life insurance company that guarantees renewal. This way, you won’t have to begin the search process all over again, thus you won’t risk paying even higher premiums than you would if you renewed, or not finding life insurance coverage at all.
Look for premium discounts. Purchasing a lower amount of term life insurance coverage doesn’t always mean you’ll pay lower premiums. Sometimes life insurance companies offer premium discounts if you purchase a higher amount of coverage. So, you may actually be able to get more affordable term life insurance if you purchase $250,000 than you would if you purchase $200,000.