Searching for life insurance can be a tedious task, considering the implications and complexity of certain policies. Looking for low cost life insurance can add to the complexity of the search, but luckily there are many companies that specialize in this type of policy.
The cost of your premiums will depend on the type of policy you select, your desired amount of coverage, risk and medical condition.
Conduct the Search
Start by obtaining a quote from your insurance agent, if applicable. You might also want to use quote comparison tools to secure rates from other providers in the industry, such as those offered by AccuQuote and NetQuote. These online tools may not offer quotes from every available insurance company, so it is important to do some additional research to find out if there are better options available to you at a lower cost.
Compile a List of Providers
Reputable and financially stable companies offering affordable life insurance products and high customer satisfaction ratings include:
- American General has been in the insurance industry and served over 13 million customers in the last 160 years. Claims and benefits paid out in the past five years total $36 billion. The company has also received the MarketTools, Inc. CustomerSat Achievement in Customer Excellence six years in a row.
- ING possesses over $460 billion in assets and currently services 13 million customers.
- Northwestern Mutual is the nation's largest provider of life insurance products and has $202 billion in assets. The 155 year old company currently serves three million clients, and is ranked on the Fortune 500 list.
- Prudential Financial is 137 years old and serves clients in 38 distinct countries and territories. The company also possesses more than one-trillion dollars in assets.
- Metlife serves 90 million customers worldwide and has over 140 years of experience in the insurance industry.
- New York Life Insurance, a member of the Fortune 500 list, possesses over 138 years of service in the insurance business. The company also has $287 million in assets under the care of management.
Research Top Providers
Before securing a policy with a life insurance company, make sure you aren't signing up for a product that is cheap, yet offers no real value. Check out company ratings through Moody's or A.M. Best to find out if the company you decide to purchase a policy through is credible and financially secure.
It is much easier to secure life insurance when you are younger and in good health because your risk to companies will be substantially lower, making the premiums more cost-efficient.
If you do have medical conditions, disclose this information in the initial application and the insurance company should be willing to discuss alternatives that may be available to you.
Keeping Costs Low
Term life insurance guarantees that a certain amount of funds will be disbursed if the covered individual passes away during the period of time that the policy is valid. Some policies have a return on premium option that allows you to collect the premiums you have paid in over the duration of the policy at the end of the term.
Most financial planners recommend term insurance because it is simple to understand and is generally more affordable than whole life insurance.
Consider coverage provided by your employer since group rates tend to be a lot cheaper than independent policies.
Selecting a Policy That's Right for You
When negotiating the terms of your life insurance policy with the company you select, present the competing quote. This grants you bargaining power and also helps to lock in the lowest rate possible.
Be sure to carefully review the terms and conditions of the policy and seek clarification, if necessary, prior to committing.