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How to get cheaper life insurance

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If you're looking for cheap life insurance there are steps you can take to secure a lower cost. Getty Images

If you already have life insurance, then you know how much it can cost you and your family. Depending on how much coverage you have it could be a negligible amount each month, or it could be more expensive.

If it's the latter, then you're probably looking for ways to cut costs and keep coverage. While that equation may be difficult to solve, there are things you should know and even some actions to take if you're looking for cheaper life insurance.

If you don't have life insurance (or want to get more), now is a good time to act. You can get started with a free estimate today.

How to get affordable life insurance

Make sure to keep these items in mind when shopping for life insurance so that you can obtain the cheapest rate possible.

  • Start early: This one seems obvious but many people don't take advantage early enough. The younger you are, the safer a bet you are to insurance companies. So you'll pay a lot less than you would if you were older. Life insurance will only grow more expensive as you age. If you want cheap life insurance then start paying now - not later.
  • Comparison shop among companies: You wouldn't buy the first house you see on the market nor would you buy the first car you test drove. This also applies to life insurance policies. Search for life insurance lenders and see what they are willing to offer you. Some will provide more coverage than others. Others may cost more (or less). Don't take the first deal you get until you've compared it to other life insurance plans and policies. Use the table below to start comparing your options.
  • Complete a thorough process: "Simplified" life insurance may sound - and actually turn out to be - easy. After all, no medical exam is required to obtain it. But you won't get cheaper life insurance by going this route. Don't pay more for less. Complete the traditional life insurance vetting procedures. This doubly applies to younger, healthier people, who will typically qualify for the best rates anyway.
  • Get term life insurance (not whole): Both term life insurance (a pre-determined set amount of time in which you'll be insured) and whole life insurance (which remains active for a full lifetime) have unique benefits. Term is cheaper because it has that pre-determined expiration date. Unlike whole, it doesn't have a savings element that makes it attractive. Still, you get what you pay for so fewer benefits will lead to cheaper life insurance.

Other ways to lower the cost of life insurance

While the above items are all important, there are some other obvious ways to ensure you get cheap rates:

  • Make sure you're healthy. Eat well, exercise and keep your weight down. Many life insurance companies will want to know your body mass index (BMI). So, if you can lose weight and get to a lower BMI you may put yourself in the running for lower rates.
  • Don't smoke. Stop, if you do.
  • Consider paying annually. Some insurance companies will offer a discount if you pay a lump sum each year.
  • Purchase only as much as you need. More coverage means higher costs. So just get what you need (for now). You can always increase your protection in the future.
  • Carefully consider "riders." This additional coverage will protect you from certain life events that your normal policy may not. But additional coverage will equal additional costs. So skip (or reduce) the number of riders you attach to your plan.
  • Look into bundling. Some insurance companies will give you a discount if you combine your life insurance policy with another type of insurance they offer. You can get a free price estimate - and determine your eligibility - here now.

In short: Life insurance coverage is not something you want to cut corners on. But that doesn't mean you need to pay top dollar either. You can still get cheap life insurance without sacrificing coverage and protection for you and your loved ones. 

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