Life insurance provides those you love and care about with financial protection upon your death. Given the important role life insurance plays, prioritizing cost over quality with a cheap or low-cost life insurance policy can be risky. However, there are options for getting affordable life insurance without sacrificing coverage.
Why the cheapest life insurance may not be the best option
Finding the right life insurance involves balancing cost and coverage. Here’s why you should be cautious when buying a cheap life insurance policy.
- A low-cost life insurance policy can have low coverage limits that may not be enough to meet the needs of your loved ones upon your death.
- No matter the policy type or limits you need, it’s a good idea to buy life insurance from a reputable company. This can help make sure the company is around in the future to pay when needed.
- Low-cost life insurance policies don’t always give you the option to add policy riders that let you access some or all of your policy’s benefits while you’re alive. This can include things like critical illness, disability, or waiver of premium.
- Cheaper life insurance may have stricter rules that can result in a denial. Working with a reputable company can generally give you more options instead of not offering you a policy.
What’s the least expensive type of life insurance?
One of the least expensive options for getting life insurance is through your employer’s group life insurance plan. In fact, some employers may cover the entire life insurance cost as part of your benefits. While coverage through work can be a low or no-cost life insurance option, coverage limits can be low. For example, some may offer one or two times your annual salary which may not be enough protection for your loved ones long-term.
Term life is a great lower-cost life insurance option you can use on its own, or to add to a workplace life insurance plan. Keep in mind term life insurance policies only provide coverage for a specific period of time (ex., 10, 20, or 30 years). Once a term life insurance policy expires, the coverage ends.
On the other hand, a whole life insurance policy has no time limit but can be a more expensive option.
Getting multiple quotes can help you find an affordable life insurance policy
A good way for you to get low-cost life insurance that fits your budget and gives you the protection you need is to compare quotes and coverages from various insurance companies.
Here are some tips
- Shop around: Compare quotes from at least 3 to 4 insurers to find the most competitive rates.
- Compare rates apples-to- apples: To be a good comparison, pick policies with the same level of coverage. For example, if you need a $250,000 policy, compare quotes from 3 to 4 insurers for that specific amount.
- Ask about policy add-on: Many life insurance companies offer policy endorsements that can be added onto a life insurance policy. While endorsements come with an additional cost, they can often be a cheaper way for you to enhance your life insurance policy so it best meets your needs.
At Liberty Mutual, we’ll help you to get the life insurance you need at a price that fits your budget.
Get a free online life insurance quote.
