Buying cheap life insurance is no different than shopping for groceries or even a house in that – we want a good product for the lowest price.
Fortunately, when it comes to affordable life insurance, you can have your cake and eat it, too.
We will cover everything you need to know about finding a cheap life insurance policy, including insider secrets, so you can pay the minimum amount of money for coverage that fits your needs.
Quick Table of Contents
- Cheap Life Insurance
- Insider Secrets
- Term Quotes
- No Exam Quotes
- Whole Quotes
- Mistakes To Avoid
Finding the cheapest life insurance for your needs comes down to two things:
- The type of life insurance you want.
- How the life insurance carrier views you.
Your life insurance premiums (the amount you pay in exchange for a life insurance policy) are affected by a number of factors surrounding those two things.
Some are within your control, while others are not.
Factors Within Your Control
Type of life insurance
The type of life insurance you buy is a major determinant in just how cheap a policy will be. And, there are countless life insurance products available for purchase.
In this article, we’ll cover the most common forms of life insurance and discuss how cheap they are:
The size of your policy, known as the face amount, impacts how much life insurance will cost.
In general, the larger the face amount, the more you will pay in premiums.
For example, if everything else is equal, a $1,000,000 policy will cost you more than a $100,000 policy.
Makes sense, of course, right?
Underwriters evaluate the amount of risk you pose.
If you live a healthy lifestyle, it’s likely you will be charged less for your policy.
On the other hand, risky activities and/or lifestyle choices often mean higher premiums:
- Traffic citations
- Some international travel
- Hazardous occupation
- Illicit drug use
- Excessive alcohol consumption
- Low credit score
- Health complications as a result of lifestyle
Factors Outside Your Control
Unsurprisingly, the younger you are, the less life insurance usually costs.
Put bluntly, the younger you are, the less likely it is you will die.
Even though it sounds impersonal, common sense tells us you will be charged less for coverage if you pose less of a likelihood of dying.
While you can’t turn back the clock, you can apply for life insurance now instead of waiting until you are older.
Generally, most life insurance carriers charge somewhat less in premiums for females than males.
When mortality tables are referenced, they reveal that, statistically, males have a higher likelihood of dying than females do.
Some Health Complications
While your lifestyle is the primary factor affecting your health, some medical complications are outside of your control.
Most life insurance companies will charge you more for a policy under the following circumstances:
- A family history of heart disease and/or cancer (typically if family member’s onset was age 60 or younger)
- Inherited health complication (i.e. sickle cell anemia)
- Autoimmune disease (i.e. multiple sclerosis)
- Certain conditions (i.e. post-traumatic stress disorder)
- Developmental disability (i.e. down syndrome)
The life insurance policy you choose, such as term, and just how much risk you pose according to the life insurance company’s assessment, will determine how cheap your policy will be.
In order to qualify for cheap life insurance, follow these 10 important pieces of advice whenever possible.
1. Choose term life insurance
Term life insurance is life insurance issued for a specific period of time, like 10 years.
Term is the cheapest form of individual life insurance.
When you buy term, you are able to secure the largest face amount for the lowest premiums.
There are policies with even shorter durations, going as small as just one year, but be weary of prices soaring very quickly, annually.
2. Pay annually
If you opt to pay your premiums on an annual basis instead of monthly, you will save money.
Depending on the policy and carrier, expect to save somewhere between 2 – 10% (typically).
3. Consider the medical exam
Often, if you apply for a fully underwritten life insurance policy, you can save some money.
A fully underwritten policy means you take a paramedical exam during the application process, as opposed to a no medical exam policy.
Let’s take a look at an example for a healthy 35-year-old.
10 Year Term For $100,000
|35 Year Old Male||Medical Exam||No Medical Exam|
|35 Year Old Female||Medical Exam||No Medical Exam|
4. Rethink riders
Life insurance riders are benefits to your life insurance policy, in addition to the death benefit.
While some riders are inherent, you will likely have the option to add on additional riders at an extra cost.
A rider that is often inherent: Accelerated Death Benefit
It’s true that riders can make all the difference during a time of difficulty. So, evaluate their benefits before shutting the door on a particular rider.
However, if you are wanting to keep your premium payments as low as possible, rethink adding riders to your contract.
5. Evaluate alternatives to a lump sum death benefit
If the purpose of your life insurance policy is to replace your income, you can save significant money by opting for a rider with fixed death benefit payments over a lump sum death benefit.
Usually called an Income Provider Option or Income Protection Option, it can be an excellent strategy to lower your premiums – if it makes sense for your life insurance needs.
Often 15 – 35% can be saved over the life of a policy with an Income Provider Option.
Lump Sum vs. Income Provider Option
|45 Year Old Male||Lump Sum Death Benefit||Income Provider Death Benefit|
|$1,000,000 20 Year Term||$111/month||$98/month|
6. Policy stacking might be a good option
Policy stacking is a life insurance strategy in which multiple policies are purchased for different amounts and sometimes different lengths of time.
Typically, there are two reasons for policy stacking:
- Let’s say you only qualify for guaranteed issue life insurance with a modest face amount. You can purchase multiple policies to increase the death benefit amount paid to your beneficiaries.
- Or, it’s possible you need different coverage amounts for different periods of your life. By purchasing more than one policy, you adequately protect your beneficiaries financially during varying life stages (i.e. working years, retirement).
Also called laddering life insurance, stacking life insurance policies can potentially save you thousands of dollars over time.
7. Keep your credit healthy
Expect your credit to be checked when you apply for most forms of life insurance.
If you have a history of bankruptcy or a poor credit score, it’s likely there will be a surcharge on your life insurance premiums.
Dings on your credit history indicate that you have had trouble making payments on accounts you are responsible for.
Carriers will want an extra layer of protection on the risk they are absorbing and will often charge you extra for your policy.
A healthy credit score means cheaper premium payments.
8. Put down that cigarette
Unsurprisingly, the use of tobacco products increases your premium payments.
Non-tobacco rates are definitely cheaper than tobacco rates.
Here’s an example:
$250,000 20 year term life insurance policy
Tobacco vs. Non Tobacco Rates
|35 Year Old Male||Tobacco||Non Tobacco|
Tobacco vs. Non Tobacco Rates
|35 Year Old Female||Tobacco||Non Tobacco|
It’s not just cigarettes that are considered to be a tobacco product by life insurance carriers. You will need to disclose if you use any of the following:
If are a tobacco user, there are a handful of carriers who underwrite smoking favorably.
Do not wait until you have quit smoking to secure life insurance coverage. You can always reapply for non-tobacco rates after you are smoke-free for at least one year.
In the meantime, it’s the right thing to have your loved ones financially protected, even if it costs more.
9. Play it safe
Cheap life insurance is available to those who present the least amount of risk, as we’ve mentioned.
How you can make sure you’re a safe bet for the insurer?
Avoid international travel to risky countries
Note – several states have passed legislation in which foreign travel cannot be cited as the sole reason for declining a life insurance application:
- New Jersey
- New York
Aside from these states, it’s common for carriers to either rate (include a surcharge on your premiums) or decline your life insurance policy if you travel to high-risk countries, that is countries known to have war-zones or terrorism.
Skip the extreme sports
Adrenaline-producing activities are famous for being high-risk.
For cheap life insurance, you may want to avoid participating in:
- Bungee jumping
- Motocross racing
- Scuba diving
- Mountaineering/Rock climbing
- Hang gliding
- Professional sports
Ten and two on the steering wheel
While the slogan is outdated, the message still rings true.
Safe defensive drivers with a clean driving record will have lower life insurance premiums than a leadfoot driver with citations on their record.
Your Motor Vehicle Report (MVR) will almost certainly be reviewed when you apply for life insurance.
Moving violations, and definitely DUIs, can raise your life insurance premiums.
Just Say No
Avoid the use of all illicit drugs to secure the cheapest life insurance.
Drug-use is considered risky and will impede your ability to purchase low-cost coverage.
Note – marijuana laws vary by state and will be viewed differently by underwriters accordingly.
10. Collaborate with an independent agent
Most importantly, be sure to work with an independent life insurance agent, like us.
The cheapest life insurance carrier to apply with will depend on your information – age, gender, health status, lifestyle, occupation, etc.
In other words, your unique needs will determine the best life insurance company to apply with.
You will want to access multiple quotes from multiple carriers to find cheap life insurance rates.
Every life insurance company’s underwriting practices are different and quotes can vary greatly.
Any independent agent will work on your behalf to find the company who will charge you the least amount in premiums.
Term is life insurance coverage that lasts for a specific period of time, like 10 years.
Term is the most popular form of life insurance because it can provide a large face amount (at affordable prices) during a time when families need protection most.
Here, we will take a look at the cheapest term life insurance quotes for healthy individuals.
Quotes show monthly premium amounts.
Cheap 10 Year Term Life Insurance Quotes Male
|20 Year Old||$6.87||$7.64||$7.13||$9.56|
|25 Year Old||$6.51||$7.71||$7.13||$9.56|
|30 Year Old||$5.46||$7.77||$7.13||$9.56|
|35 Year Old||$6.11||$7.89||$7.17||$9.62|
|40 Year Old||$7.29||$8.51||$8.29||$11.63|
|45 Year Old||$8.11||$10.14||$10.77||$16.93|
|50 Year Old||$9.59||$13.48||$14.07||$23.66|
|55 Year Old||$11.68||$17.27||$19.34||$37.83|
|60 Year Old||$15.62||$24.70||$28.39||$60.13|
|65 Year Old||$21.34||$36.58||$42.35||$96.69|
|70 Year Old||$28.58||$51.07||$79.36||$178.06|
|75 Year Old||$49.42||$92.74||$133.79||$325.28|
|80 Year Old||$208.79||$304.76||$243.60||$599.81|
Cheap 10 Year Term Life Insurance Quotes Female
|20 Year Old||$5.35||$6.83||$6.84||$8.55|
|25 Year Old||$5.61||$6.83||$6.84||$8.55|
|30 Year Old||$5.33||$6.83||$6.84||$8.73|
|35 Year Old||$5.42||$7.26||$6.88||$8.94|
|40 Year Old||$6.36||$7.92||$7.89||$10.81|
|45 Year Old||$7.53||$8.96||$9.91||$15.16|
|50 Year Old||$8.70||$11.21||$12.56||$20.34|
|55 Year Old||$10.31||$14.53||$15.49||$29.26|
|60 Year Old||$12.75||$18.37||$23.26||$41.91|
|65 Year Old||$17.01||$26.90||$33.26||$66.48|
|70 Year Old||$22.58||$39.06||$55.48||$107.62|
|75 Year Old||$37.21||$68.34||$96.25||$217.73|
|80 Year Old||$176.49||$250.69||$195.21||$478.84|
If you are interested in skipping the needles and nurses during the application process, cheap no medical exam is also available.
Keep in mind, as you will see from the quotes, no exam life insurance tends to cost (sometimes only a little) more than fully underwritten life insurance.
For many, however, the added convenience is well worth it.
Let’s look at cheap term life insurance without a medical exam for healthy individuals.
Note – you will notice the biggest price differential between medically underwritten and no exam policies for older individuals, especially with larger face amounts.
Quotes show monthly premium amounts.
Cheap 10 Year No Exam Life Insurance Quotes Male
|20 Year Old||$10.12||$7.64||$8.47||$11.39|
|25 Year Old||$9.97||$7.71||$8.60||$11.58|
|30 Year Old||$9.82||$7.77||$8.74||$11.77|
|35 Year Old||$10.51||$7.89||$8.92||$12.03|
|40 Year Old||$12.10||$8.51||$10.30||$15.25|
|45 Year Old||$14.13||$10.84||$13.01||$21.00|
|50 Year Old||$17.48||$13.48||$16.71||$26.32|
|55 Year Old||$24.49||$18.31||$21.72||$42.28|
|60 Year Old||$37.28||$24.70||$33.16||$66.87|
|65 Year Old||$46.07||$38.72||$69.09||$148.76|
|70 Year Old||$79.94||$78.61||$150.93||$356.18|
|75 Year Old||$139.91||$130.28||$254.25||$613.58|
|80 Year Old||$232.10||$330.93||$655.73||NA|
Cheap 10 Year No Exam Life Insurance Quotes Female
|20 Year Old||$8.74||$7.15||$7.76||$9.67|
|25 Year Old||$8.87||$7.23||$7.86||$9.88|
|30 Year Old||$9.19||$7.31||$7.97||$10.09|
|35 Year Old||$9.51||$7.46||$8.22||$10.34|
|40 Year Old||$10.79||$8.40||$9.56||$13.19|
|45 Year Old||$12.84||$10.36||$12.52||$16.75|
|50 Year Old||$16.48||$11.95||$14.90||$22.73|
|55 Year Old||$20.30||$14.70||$18.97||$40.83|
|60 Year Old||$24.90||$18.37||$26.03||$53.30|
|65 Year Old||$33.73||$26.90||$42.44||$89.89|
|70 Year Old||$67.66||$47.48||$88.65||$207.68|
|75 Year Old||$114.05||$88.97||$171.63||$414.45|
|80 Year Old||$215.94||$250.69||$495.25||NA|
As the name implies, whole life insurance lasts your whole life.
Your life insurance policy does not expire and your beneficiaries will receive a death benefit regardless of the age in which you pass away.
But, depending on your financial needs, whole life insurance might be your best option.
We’ll examine the cheapest whole life insurance quotes for healthy individuals.
Quotes show monthly premium amounts.
Cheap Whole Life Insurance Quotes Male
|20 Year Old||$25.88||$45.46||$64.22||$151.11|
|25 Year Old||$27.96||$49.61||$75.25||$178.68|
|30 Year Old||$30.98||$55.65||$90.39||$216.52|
|35 Year Old||$35.22||$64.14||$110.60||$267.05|
|40 Year Old||$40.08||$73.85||$134.31||$326.33|
|45 Year Old||$48.15||$89.99||$164.41||$401.58|
|50 Year Old||$58.36||$110.43||$203.53||$499.36|
|55 Year Old||$72.34||$138.38||$255.50||$629.30|
|60 Year Old||$89.97||$173.64||$324.71||$802.33|
|65 Year Old||$115.08||$223.87||$416.64||$1019.21|
|70 Year Old||$155.99||$305.68||$546.97||$1359.38|
|75 Year Old||$219.48||$406.13||$738.11||$1868.98|
|80 Year Old||$285.86||$565.42||$1097.07||$2801.93|
|85 Year Old||$368.55||$730.80||$1455.30||$3628.80|
Copy of Cheap Whole Life Insurance Quotes Female
|20 Year Old||$24.96||$43.62||$56.61||$132.08|
|25 Year Old||$27.23||$48.17||$66.50||$156.80|
|30 Year Old||$30.45||$54.60||$79.36||$188.96|
|35 Year Old||$34.43||$62.56||$95.99||$230.52|
|40 Year Old||$38.81||$71.31||$114.78||$277.99|
|45 Year Old||$44.60||$82.91||$143.50||$349.30|
|50 Year Old||$52.50||$98.70||$175.44||$429.14|
|55 Year Old||$66.15||$126.00||$223.74||$549.89|
|60 Year Old||$82.18||$158.07||$279.62||$670.55|
|65 Year Old||$104.43||$202.56||$350.09||$850.64|
|70 Year Old||$141.88||$277.46||$453.36||$1117.30|
|75 Year Old||$193.31||$362.64||$614.22||$1546.43|
|80 Year Old||$248.48||$490.66||$882.53||$2277.66|
|85 Year Old||$302.03||$597.76||$1189.21||$2963.58|
If you are employed, it’s possible your employer offers life insurance coverage called group life.
Employer group life is typically free or cheap.
How do I get a group life policy?
Usually, you can enroll in your employer’s group life program during open enrollment (happens annually) or if you were recently hired.
Expect to fill out basic paperwork in a simple straightforward process.
In addition to group life, many employers offer optional supplemental life insurance for an additional cost. Supplemental coverage typically allows you to secure up to 2x-4x your annual salary.
Note – supplemental coverage may require you to disclose your medical records and possibly participate in a physical exam.
Is group life insurance worth it?
By all means, sign up for your employer-provided life insurance.
The question you will want to ask yourself is, “Is my group life policy enough?”
Often, the answer is probably not.
However, some life insurance is better than no life insurance. And, if you are on a strict budget, it may be your best option.
- First, group life insurance is easier to qualify for than individual life insurance.
- Second, you will likely be charged less for a group/supplemental policy than an individual policy, especially if you have health complications.
- Third, group life is typically set up in five-year bands, meaning that you will be charged more after each band.
Finally, if you leave your job, your policy will not necessarily follow you, potentially putting your family at financial risk.
Life insurance needs and options change as we age.
We recommend the following steps to find cheaper senior life insurance policies which still cover your needs and wants.
Evaluate your options based on age
For example, finding the cheapest life insurance for someone over 50 is easier than for someone over 85 years old.
Consider the following age-cutoffs for different types of life insurance.
- Term life insurance: typically 80 years old.
- Guaranteed universal life insurance: typically 85 years old.
- Whole life insurance: typically 85 years old.
- Final expense life insurance: typically 85 years old.
Determine the best (and cheapest) type of life insurance for you
The cheapest life insurance for seniors generally follows this order.
- Term life insurance is the cheapest.
- Guaranteed universal is the second cheapest.
- Whole life insurance is the second most expensive.
- Final expense is the most expensive.
***These are determined by looking at the cost per thousand of death benefit.
Compare life insurance quotes
Cheap life insurance for elderly individuals is often available. Before applying, you will want to know how much you’ll be charged for your policy.
That’s why you should work with an independent agent to compare and contrast quotes from multiple companies.
In order to secure the cheapest life insurance policy, not to mention the best policy for you, plan to avoid the following mistakes:
Mistake #1: Buy Directly From A Carrier
If you apply for a policy directly with a life insurance carrier, you run the risk of not securing the cheapest life insurance.
Every carrier uses their own unique underwriting process. Your particular situation (job, health, family history, lifestyle) will determine the best company to apply with.
Mistake #2: Respond To A Direct Mailer
It’s common to receive direct mail advertising low life insurance rates. Use caution.
The fine print is often not communicated clearly. Direct mail is typically not the best place to secure a cheap life insurance policy.
If you receive direct mail, show the advertisement to your agent to verify its veracity.
Mistake #3: Call A Number On A Television Ad
Similar to direct mail, television advertisements promising cheap life insurance can be deceiving.
When you hear claims such as, “coverage for pennies a day,” think twice before picking up the phone.
Again, you will want to understand the specific life insurance product being offered before proceeding.
Mistake #4: You Only Focus On Cheap
While securing the cheapest life insurance you qualify for is important, don’t buy until you confirm that the policy is right for you.
Before applying, you will want to know:
- The financial strength of the life insurance company.
- What riders are included in your policy, and if it makes sense to add on a rider or two.
- For term life, if the length of the policy is going to adequately safeguard those you care most about.
- Pertaining to whole life, if there is a cash-value component to your policy and whether that’s important to you.
Remember, the two things which affect just how cheap your life insurance will be are:
- The type of life insurance you want.
- How the life insurance carrier views you.
The best way to secure the most affordable life insurance you qualify for is to partner up with an independent agent to analyze multiple quotes from the top carriers.
Can we help you get started?