Life insurance is an essential component of financial planning, providing peace of mind to individuals and their loved ones in the event of an unexpected death. However, the cost of life insurance can vary greatly depending on factors such as age, health, and coverage amount. For those who are looking for affordable options, there are many cheap life insurance policies available on the market.
In this article, we will explore some of the best cheap life insurance options of 2023, taking into account factors such as affordability, coverage options, and customer reviews. Whether you are a young adult just starting out or a retiree looking to protect your loved ones, there is sure to be a life insurance policy on this list that fits your needs and budget.
How much is an average life insurance policy?
With coverage of $500,000, a healthy, non-smoking 30-year-old guy might anticipate paying about $300 year. A female will shell out around $252. Yet, there are a number of variables, including age, sex, health, and the type of policy, that affect the “average cost” of life insurance.
For instance, a 50-year-old male in good health who does not smoke can anticipate to pay about $1,008 year for a brand-new term life insurance policy with a face value of $500,000. He would have paid about $312 in annual premium if he had bought the policy when he was 20.
The same 50-year-old man would pay more than $12,500 annually instead of $1,008 if he bought a permanent insurance policy as opposed to a term policy. Even if certain permanent insurance policies accrue cash value, it’s important to consider the premium cost variations.
The Best Cheap Life Insurance of 2023
Here are some of the best cheap life insurance options of 2023:
- Haven Life: Haven Life offers term life insurance policies that are both affordable and flexible. They offer coverage amounts ranging from $100,000 to $3 million, with terms from 10 to 30 years. Haven Life also has a quick online application process and no medical exam requirements for qualified individuals.
- Bestow: Bestow offers affordable term life insurance policies with coverage amounts ranging from $50,000 to $1 million. They have an easy online application process that can be completed in minutes, with no medical exam required for qualified applicants. Bestow’s policies are also backed by North American Company for Life and Health Insurance, a reputable insurance carrier.
- Ethos: Ethos offers term life insurance policies with coverage amounts ranging from $25,000 to $10 million, with terms from 10 to 30 years. They have a fast online application process and do not require a medical exam for many applicants. Ethos policies are also underwritten by reputable insurance carriers such as Legal & General America and Munich Re.
- Policygenius: Policygenius is an online insurance marketplace that allows individuals to compare and purchase life insurance policies from multiple insurance carriers. They offer a wide range of policies with coverage amounts from $50,000 to $10 million, making it easy to find an affordable policy that meets your needs. Policygenius also provides expert advice and guidance throughout the application process.
- Fabric: Fabric offers term life insurance policies with coverage amounts ranging from $100,000 to $5 million, with terms from 10 to 20 years. They have a simple online application process and no medical exam requirements for qualified applicants. Fabric also offers a mobile app that makes it easy to manage your policy and access support when you need it.
When selecting a life insurance policy, it’s important to consider your individual needs and budget. By comparing these options and others, you can find the best cheap life insurance policy of 2023 for you and your loved ones.
Factors that impact the price of life insurance
How much of a danger a person is deemed to be by a life insurance company determines how much they can anticipate to pay for life insurance. For instance, an older person can anticipate paying more for a coverage than a younger person merely because of the statistical likelihood that they will die sooner as they get older. Here are some additional elements that affect a life insurance policy’s cost in addition to age.
- Gender: Insurance companies charge women less for coverage because women have a longer life expectancy.
- Health: Insurance companies consider pre-existing conditions, like weight and blood pressure, when setting rates.
- Family history: If an applicant’s family tree shows a long history of heart disease, diabetes, or other serious conditions, it could raise rates.
- Smoking status: Because of all the health-related issues tied to smoking, smokers can expect to pay significantly higher premiums.
- Activities: A person with a potentially dangerous hobby like drag-racing or skydiving can expect to pay more for life insurance.
- Occupation: By the same token, a person with a dangerous job is likely to pay more for life insurance. This includes builders, miners, members of the armed forces, and first responders.
- Death benefit: The higher the value of a policy, the more expensive the premium. For example, a policy with a $500,000 death benefit will cost more than a policy with a $250,000 death benefit.
- Term of policy: The longer the term, the more expensive the policy. A 30-year policy carries a higher premium than a 10-year policy.
- Policy type: Term life carries the least expensive premium, because it only provides protection for a specific time period. On the other hand, a permanent policy, like whole life insurance, can cost six to 10 times more than term coverage.
How to bring down the cost of your life insurance policy
Anyone unhappy with the life insurance quotes they get can take these steps to bring premium costs down.
- Buy young. The best answer to the question of when to buy life insurance is always “right away,” due to the role age plays.
- Stop smoking. As difficult as it is to stop smoking, doing so may save a person’s life while minimizing the cost of insurance.
- Cut back on drinking. If health concerns are tied to over-imbibing, cutting back can sometimes improve health enough to drive down the cost of insurance.
- Lose weight and start exercising. No one wants to hear that they should eat better or exercise more, but doing so is one of the best ways to get healthy and pay less for insurance.
- Opt out of extras. If an agent suggests adding riders, but that moves the price of the policy outside the comfort zone, consider opting out of extras.
- Ask about bundling discounts. If an insurance company provides more than one type of insurance, find out how much can be saved by bundling policies.
Shopping for life insurance is no one’s idea of fun, but the best life insurance companies make it easy by providing online quotes for some products. They also help a potential policyholder figure out the coverage amount they require and the insurance product that best fits their financial goals. That may mean permanent life insurance for one person, while for another, it’s term life.