Many people say they would like to purchase life insurance to protect their dependents but unfortunately they cannot afford it. If this sounds like something you might have said, think again because there is a very good chance you can purchase the life insurance your family really needs. Many people look at their income vs. expense ratio and just assume they cannot afford to purchase a life insurance plan. There are several types of life insurance policies and they all differ in price and benefits. Life insurance prices are also going down.
*The first step is to find an experienced life insurance agent that can explain all the different plan designs and then start comparing the various cost factors of each product.
There are two popular life insurance plan designs to consider which is Term Life insurance and Universal Life insurance.
Whole life insurance is not popular at all because of the high cost so we will not get into that discussion. A very brief description of Whole life is it is a permanent type plan design with a cash build up feature. An excellent permanent plan design would be Universal life which comes in two versions. One version would have a cash build up feature and the other would not.
Eliminating the cash build up feature would lower the premium which would offer you a permanent plan design with a more affordable premium. Permanent life insurance plan designs will always cost more due to the fact they last for the rest of your life and there is a certainty the life insurance company with have to pay out.
Low cost Term life insurance will be the cheapest way to go in comparison to any other life insurance plan design.
Term life insurance comes in 5, 10, 15, 20, 25 and 30 year term lengths. The shorter the term period, the lower the premium will be. Needless to say, the lower the face amount otherwise known as the death benefit the lower the premium. If you are on a very tight budget and you need life insurance, you may have to look at a lower face amount and a shorter term period to fit your budget.
Keep in mind that this method of thinking would be better than no life insurance at all. If you really need a $250,000 death benefit but you can only afford $100,000, the $100,000 policy will certainly help your family out better than having no life insurance at all. If your finances improve you can always apply for a new plan with a longer term period and higher face amount. You just have to remember the older you get the higher the rates will be when applying for a new Term life insurance policy.
Use our quoting tool to compare affordable Term life insurance products in each of the term lengths to see the difference in premiums.
If you use our consumer quote engine, you will be able to compare rates from over 40 of the most competitive life insurance companies and see the exact breakdown of the premiums for each term length with your choice of face amounts. You can also use our face amount calculator to get a good idea what death benefit would work out for you.
A Term policy with a shorter term length of 10 years for example is very reasonable in price to help protect your family in tough economic times even though the best choice would be a 20 year term length. You can always buy an additional policy or replace the one you have when your finances improve.
Give us a call and we will answer any questions you may have and give you our experienced opinion on how to purchase a good low cost Term life insurance policy without breaking the bank. We have been helping people purchase affordable life insurance for over 20 years and there is no cost or obligation for our help. You may contact us 7 days a week and also on weekends.