Cheap Life Insurance

What is Life Insurance?

The way to think about affordable life insurance coverage is not as a policy where you can file coverage claims but as a contract with an insurance company. If life insurance ever has a claim, it will be the only one filed after the policyholder dies. At that point, anyone listed on the policy as a beneficiary receives the policy payout or death benefit.

Cheap Life insurance policies can be customized based on the amount of coverage, the number of beneficiaries, and even the time frame it lasts. The policy payout is usually used for any debts or financial strains that would happen if the policyholder were to pass away, like mortgages, incomes, and college tuition.

That’s the main point of cheap life insurance coverage –keeping your loved ones, family, or household financially secure for all time.

How Does Life Insurance Work?

Before getting into the specifics of any given life insurance policy, let’s talk about how they work because they all function consistently. Regardless of its coverage type, a cheap life insurance policy will include a death benefit or payout, premiums or rates, and a cash value that serves as a tax-deferred saving account for the policyholder to use during their life.

Life insurance premiums can be paid every month or in a lump sum all at once. These rates depend on age, gender, medical history, and occupation. As with car insurance, some policyholders can be seen as high risk, and that can result in higher quotes and rates.

Older customers with an extensive medical history can expect to pay more premiums in a life insurance policy. Regardless of whether the insurance was permanent or temporary, the insurer will always pay the death benefit upon the policyholder’s death.

Every company quotes differently when finding the best deal on an affordable life policy. So, comparing coverage and contrasting quotes before settling on one is best. Remember that getting cheap life insurance quotes will take less than 5 minutes.

What Are The Different Types of Affordable Life Insurance?

You may have noticed that a cheap life insurance policy could be temporary or permanent.

You can purchase These two main types of affordable life coverage -term and permanent. The difference is exactly how they sound.

Term life insurance coverage lasts a finite number of years, which is what you set for yourself. It can be anywhere from 10 to 30 years. Meanwhile, permanent life insurance coverage is everlasting until the policyholder dies or cancels it.

Permanent life insurance coverage is more expensive than term and offers more coverage. Those are the two most common affordable life insurance coverage that many new customers are referred to.

With those in mind, here are more specifics of the different types of life insurance:

Premiums and single premium

Premiums and rates are a regular part of any insurance coverage. You can have monthly or premium rates with cheap life insurance quotes.

As opposed to paying overtime, the policyholder can pay it all upfront. You’ll also have the option of a return premium, where you’ll pay your life insurance premium and then get reimbursed at the end of the term.

Level or increasing term

Regarding premiums of a term policy, you also have two options. A level-term policy means that the rates stay the same while an increasing term increases as you age. You may be unable to pay the premium immediately with term life insurance coverage.

Whole Life or Universal Life

Whole life insurance coverage is only provided for permanent policyholders, which accumulates cash value over time on a tax-deferred basis. The cash value of a whole life insurance policy is an amount that the policyholder can use during their lifetime while the policy is active.

The only difference between a whole life insurance and a universal life plan is that the cash value increases with interest, and the premiums and payouts can be customized.

Guaranteed Issue Life

This type of permanent life insurance coverage for people with a history of medical issues would make it difficult for them to be insured.

Due to risk, the insurance company doesn’t pay the death benefit for the first two years unless there’s an accidental death. Instead, the premiums are returned to the policyholder’s beneficiaries.

Three Types of Universal Life Insurance

Some insurers may refer to permanent life insurance as universal life insurance as it’s the most common choice. Having permanent life insurance coverage with rates comparable to a term life policy and customizable death benefits appeals to many.

As we get into the specifics, you’ll find that there are different types of universal coverage insurance companies offer:

Guaranteed Universal Life

This would be the most low-cost universal life insurance policy since it’s lower than a standard permanent plan. The cash value, however, only builds over time.

Variable Universal Life

This allows the policyholder more freedom with their policy’s cash value. It can increase, and policyholders can invest it as they choose.

Indexed Universal Life

A policyholder can earn a fixed or indexed rate on this universal life insurance policy.

How Can You Buy Affordable Life Insurance?

Buying life insurance coverage differs from walking into an insurance company’s brick-and-mortar location and walking out with an insured vehicle or assets. It’s a process of qualifying and evaluation by the insurers. Quotes are free; you can often receive quotes the same day you request them.

Every day, insurance companies look at potential life insurance applicants. Some applicants work with a complimentary insurance broker to determine the best company and policy for their affordable life insurance coverage needs.

There are nearly 850 life insurance companies in the United States, so there’s always something for everyone.

Tips on buying and building your life insurance policy:

• Think about how much insurance you need. How much cheap life insurance coverage you will need depends on your family’s or beneficiaries' financial needs and priorities if you were to pass away and be unable to provide it. Debts, income, and college tuition are some expenses you’d want covered. Many policyholders tend to set their policy limits four times their income.
• Compare policies by shopping around – The best life insurance providers pay their claims in the future and have a tangible history of doing so. Quotes are free and can be done in one day, so receiving and comparing several quotes helps. Always take into account the amount of coverage and cost.
• Apply it to your desired life insurance policy. You can find Cheap life insurance quotes online. The most crucial information you need is your medical history and basic income to gauge your risk and premiums. You may have to take a medical exam and disclose information about hazardous hobbies or occupations in a phone interview.
• Await approval – The final rate the insurance company sets is usually similar to the quoted amount. Life insurance coverage may take six to eight weeks to get approval. But if you look around, some insurers may offer quotes on instant decision policies.
• Sign and accept policy – Once it has been presented to you, it’s time to sign it so your coverage becomes active. You’ll also have the option to pay your monthly premium or a one-lump sum to get your coverage started, as is usual for permanent or universal life insurance coverage.

Who Usually Qualifies For Cheap Life Insurance?

The short answer is that anyone can qualify for a life insurance policy if willing to go a little out of their budget and examine insurers closely. However, it is more accessible for younger people with less medical history. They’re also more likely to receive the death benefits they would want. Even if your application is rejected, you can get approval from another company.

If you make risky lifestyle choices like smoking cigarettes or skydiving, that can signal some riskiness to the insurance companies. That can result in the application being denied or higher rates and quotes to be insured. All this information is given to the insurance company during your interview and medical exam. Everyone qualifies for a cheap life insurance policy somewhere.

The most common type of affordable life insurance customers and those who usually qualify are:

Couples or spouses

Marriage, unions, and partnerships combine two people’s finances, which raises the need for a safety net should one pass away.

Parents of students

Parents regularly take out a life insurance policy to support their children until they go to college. And for university students, a life insurance policy would be wise for those who signed off on their student loans.

Homeowners

Homeowners often purchase life insurance coverage that lasts just as long as their property mortgage – 20 to 30 years.

Business owners

Those who run a business work with their partners to buy a life insurance policy that covers the business expenses should one of them pass away.

How Much Does Term and Permanent Life Insurance Cost?

The cost of life insurance depends on four things: health, age, lifestyle, and sex (men’s rates are higher than women’s).

A term life insurance policy costs five to fifteen times less than a permanent one. For both, customers set their policy limits anywhere from $250,000 to $1,000,000, or at least four times their income.

These are the amounts that policyholders ages 20 through 40 usually set. The average coverage cost of cheap life insurance coverage is around $26 a month. This was based on a 40-year-old man purchasing a 20-year term life policy.

Here’s how much the policyholders typically pay for affordable life insurance. Note that these are averages:

• Twenty-five years old – A 25-year-old woman pays around $14.25 a month for $250,000, $21.26 for $500,000, and $34.54 for $1,000,000. A 25-year-old man pays around $17.13 monthly for $250,000 limits, $27.10 for $500,000 limits, and $45.18 monthly for $1,000,000.
• Thirty-five years old – As the policyholder ages, their insurance rates increase. Now, a 35-year-old woman pays an average of $16.48 a month for $250,000 limits, $25.43 for $500,000 limits, and $42.61 a month for $1,000,000 limits. Meanwhile, a 35-year-old man pays $18.70 monthly for $250,000 limits, $30.29 for $500,000 limits, and $51.72 for $1,000,000 limits.
• Forty-five years old – The premiums continue to grow, with 45-year-old women paying $28.41 a month for $250,000 limits, $47.52 for $500,000 limits, and $86.37 for $1,000,000 limits. A man of the same age group would pay $35.31 a month for $250,000 coverage, $60.78 a month for $500,000 coverage, and $113.62 for $1,000,000 coverage.

What Else Can Affordable Life Insurance Be Used For?

The primary use of life insurance is to provide funds to anyone affected financially by the policyholder’s death. However, there are some additional advantages for some policyholders.

Some of these opportunities are:

• Retirement – Life insurance policies can provide funds for retirement with either a pension maximization strategy or maxed-out tax-advantaged accounts.
• Avoiding taxes – Death benefits of a life insurance policy are tax-free. Tax avoidance is having an alternate payment method for taxes that would save you. Illegal tax evasion is allowing the tax to go unpaid altogether.
• Lent money – Life insurance policyholders can borrow money from their insurance providers with the cash value or death benefit as collateral.

What is The Best Way to Shop For Life Insurance?

Buying life insurance coverage requires you to consider your lifestyle and financial situation closely. Every insurance company quotes their affordable life policy differently, so it helps to receive a couple of quotes you can compare.

The best insurer for your standard of living may be a local name rather than a national company. Ask yourself if you would financially benefit from a term or whole life insurance policy.

While it may not be legally required for you to carry, affordable life insurance is a must-have for those looking to protect their loved ones financially.

Life Insurance Classification Levels

Before shopping for cheap life insurance policies, knowing what insurance companies use when crafting a policy and determining rates is helpful.

Insurance companies use the levels of the following classification for their policyholders:

Preferred Plus Life

People in excellent health with a clean family history and perfect height-weight ratio.

Preferred Life

People with minor health issues may be treatable with simple lifestyle choices.

Standard Plus Life

People with okay health and family history with few issues.

Standard Life

People with some health issues and a less-than-ideal height-weight ratio. This category is heavily influenced by family history and life expectancy.

Substandard Life

People with complex health histories and recent complications, including heart attacks or strokes.

Preferred Plus Life

People in excellent health with a clean family history and perfect height-weight ratio.

Preferred Life

People with minor health issues that may be treatable with simple lifestyle choices.

Standard Plus Life

People with okay health and family history with few issues.

Standard Life

People with some health issues and a less-than-ideal height-weight ratio. This category is heavily influenced by family history and life expectancy.

Substandard Life

People with complex health histories and recent complications, including heart attacks or strokes. These policies almost always need a medical exam before being issued.

When creating your policy, a company looks at several health indicators and other factors. It is okay to wait until you are older to acquire a policy. Young people can lock in low rates because they tend to be healthier and less risky.

Get an Affordable Life Insurance Quote Today

Affordable Life Insurance is vital to protecting your family in case the unexpected happens.

We at Insurance Navy specialize in getting you the cheap life insurance coverage you need. Get Quotes Online or visit one of our convenient locations today!

Cheap Life Insurance from Insurance Navy is Easy!

Get a Free, Affordable Life Insurance Quote by calling 888-949-6289

*Life Insurance may not be available in every state; please call an insurance agent for more information.