Term life insurance is the most affordable way to protect your family’s future. As inexpensive as term life insurance is, there are money-saving tips to ensure you are paying only what you need. Get the most value for your dollar by checking out the following helpful tips that will save you money while still getting great protection.
- Get coverage early – the sooner you buy life insurance, the less your annual premiums:
Some people are gamblers by nature and choose to take their chances by skipping out on life insurance. Although it is unlikely you’ll die during your working years, you’re not insuring for what’s likely to happen but instead for the worst-case scenario. That’s why term life insurance costs less the younger you are. It is also why you should buy it sooner rather than later–because you’ll be providing financial security without spending a lot of money on it.
For example, if we look at the cost to purchase a $500,000 Term 20 life insurance policy, you’ll see how delaying purchasing a policy by just a few years could cost you more in annual premiums.
For male non-smokers*:
A 30-year-old may get quotes for as little as $396 per year for a 10-year total cost of $3,960.
A 40-year-old may get quotes for as little as $600 per year for a 10-year total cost of $6,000.
A 50-year-old may get quotes for as little as $1,416 per year for a 10-year total cost of $14,160.
For female non-smokers*:
A 30-year-old may get quotes for as little as $336 per year for a 10-year total cost of $3,360.
A 40-year-old may get quotes for as little as $492 per year for a 10-year total cost of $4,920.
A 50-year-old may get quotes for as little as $1,104 per year for a 10-year total cost of $11,040.
* Lowest quote online from August 2021 for a Term 10 policy, one of the United States’ most popular life insurance products. Premiums shown are the rates if paid annually.
- When your age isn’t your age:
Your next birthday maybe six months away, but in the eyes of most life insurers, you’ve already hit that next magical number. When you get a life insurance quote, the rate you are given is based on the age you are closest to, which, 50 percent of the time, is your age at your next birthday. It’s a term called “Age Nearest,” and that half-year price increase could add up. See the difference yourself.
For male non-smokers*:
A 39-year-old may get quotes for as little as $401 per year for a 10-year total cost of $4,010.
A 40-year-old may get quotes for as little as $427 per year for a 10-year total cost of $4,270.
A savings of $260
A 44-year-old may get quotes for as little as $603 per year for a 10-year total cost of $6,030.
A 45-year-old may get quotes for as little as $652 per year for a 10-year total cost of $6,520.
A savings of $490
For a female non-smoker*:
A 39-year-old may get quotes for as little as $352 per year for a 10-year total cost of $3,520.
A 40-year-old may get quotes for as little as $373 per year for a 10-year total cost of $3,730.
A savings of $210
A 44-year-old may get quotes for as little as $507 per year for a 10-year total cost of $5,070.
A 45-year-old may get quotes for as little as $544 per year for a 10-year total cost of $5,440.
A savings of $370
* Lowest quote online in August 2021 for a Term 10 policy. Premiums shown are the rates if paid annually.
- If you’re a smoker, ask about incentive programs aimed at helping you quit:
While not all life insurance companies offer incentive programs to help you quit, some do and could save you money if you think about buying life insurance and quitting smoking. For example, one such company will refund you an amount equal to the difference between the premiums you already paid as a smoker and those you would have paid had you not smoked. What’s more, once you quit smoking, this same company will adjust your premiums to non-smoker rates based on the age you were when you purchased the policy, not the age you are at the time you quit!
- Check out your payment/billing options:
Many life insurance companies offer discounts to consumers who pay their annual premiums upfront. If you have the money handy, you could save up to 10 percent of your policy’s premium each year. For example:
- A 30-year-old male with a $500,000 20-year term coverage can pay from $240-$399 upfront per year for life insurance coverage. However, if paid in monthly installments, the annual premium jumps to about $233-$380. Paying upfront can save this person $7-$19 per year!
- A 45-year-old male with $1,000,000 30-year coverage can pay $1,852-$1,995 upfront per year for life insurance coverage. However, if paid in monthly installments, the annual premium jumps to about $1,911-$2,053. Paying upfront can save this person $59-$98 per year!
Life insurance made even more affordable:
With these money-saving tips in hand, Term Life insurance is more affordable than ever. There is no better time than now to get the coverage you and your family need. Click the following link to get a copy of my book on life insurance, The Basics of Life Insurance.
If you need assistance selecting or reviewing your life insurance needs, please reach out to me as I am a licensed Tennessee Life Insurance agent. However, I do not actively sell any life insurance products. Located in Nashville, Tennessee, I am a fee-only fiduciary Registered Financial Consultant. Regardless of where you are in the United States, I can assist you with your financial needs.
