- >>The Average Cost of Life Insurance by Age
The Average Cost of Life Insurance by Age
|Age||Annual premium (non-smoker)||Annual premium (smoker)|
As you can see, average annual life insurance premiums are less expensive for young people and more expensive for older people. For smokers, the cost of life insurance is typically double what it costs for non-smokers.
Another thing to consider is that these rates are for term life insurance, which is often less expensive for young people than permanent life insurance policies. If you want to get a permanent policy that provides lifetime protection, such as whole life insurance, you will probably pay a higher premium.
If you’re not sure what type of life insurance is right for you, you can check out our guide to term life insurance vs. whole life insurance.
How to Get a Cheaper Life Insurance Premium
You won’t know exactly how much your life insurance premium will cost until you apply for a policy. But if you find that you’re getting very expensive rate quotes, there are a few ways you can lower your rate.
Although lowering your life insurance premium is possible, it’s not as easy as getting cheaper car insurance or renters insurance, for example. Life insurance companies usually don’t offer discounts, so saving money often involves making lifestyle changes.
Here are a few tips for getting a cheaper life insurance premium:
Buy coverage while you are young
Although we’ve mentioned this a few times, it’s worth repeating — buying life insurance while you’re young can help you save money.
Even if you aren’t in perfect health or work in a high-risk profession, you will probably still pay less for life insurance if you get a policy before you turn 40.
And if you choose a term life insurance policy, your premiums will be fixed for the duration of the term. So, for example, if you buy a 30-year term policy at age 30, your premium will stay the same until you turn 60.
Maintain your health
Ultimately, the most effective way to get a lower life insurance premium is to make sure you are in the best health possible.
If you’re a smoker and can stop smoking, you could see significant savings on your policy. Maintaining a healthy weight, blood pressure and cholesterol should help you qualify for the best rates, too.
If you have pre-existing conditions, make sure you are working with a physician to manage them. That can also help you avoid developing additional disorders down the line that could impact your life insurance cost.
Limit risky hobbies and activities
When you apply for life insurance, the insurance company will ask questions about your hobbies.
For example, if you enjoy skydiving or scuba diving on the weekends, you can expect to pay a much higher life insurance premium.
The same goes for high-risk professions. If you are a construction worker, window washer or roofer, you might end up paying more for life insurance.
Read more: 8 Things that Will Get you Denied Life Insurance Coverage
Choose riders wisely
Most life insurance companies sell riders, which are endorsements that can be added to your policy for extra protection and tailored coverage.
For example, many insurance carriers offer a terminal illness rider, which allows you to use money from your death benefit if you get diagnosed with a terminal condition and have months to live.
However, most life insurance riders cost extra. It can be tempting to add all the riders available for the most protection, but that could cause your premium to skyrocket. Choosing your riders carefully can keep your premium low.
Where to Buy Affordable Life Insurance
Many life insurance companies provide online quotes for term life insurance, which can make it easy to compare rates and find the cheapest policy. If you are shopping for life insurance for the first time, we recommend getting quotes from Ladder and Policygenius, which are both very user-friendly and provide instant price estimates based on a few questions.
But before you start applying for policies, it’s a good idea to figure out how much coverage you may need. To make it easier, you can use our free life insurance coverage calculator to estimate how much coverage will be sufficient for your family’s needs.
Here’s a quick look at some of our favorite places to get affordable life insurance:
Policygenius is an online marketplace where you can get multiple life insurance quotes from a single application.
Based on your questionnaire responses, Policygenius matches you with a few life insurance providers that will fit your needs. Some of the life insurance companies in Policygenius’ network include Prudential, Pacific Life, Transamerica, and AIG.
Depending on the providers you get matched with, you can purchase a variety of different policies, including term life insurance, level term life insurance, return of premium life insurance, no medical exam life insurance, and whole life insurance. Policygenius can also recommend a policy type that is best for you, based on your situation.
Getting a life insurance quote from Policygenius is quick and easy. The company takes a three-step approach to life insurance quotes:
- Step one: You calculate the amount of life insurance you’ll need using Policygenius’ life insurance calculator.
- Step two: Compare multiple life insurance companies’ quotes, usually more than a dozen, side-by-side so you can find the most affordable quote that meets your needs.
- Step three: Apply for the life insurance policy from the company or companies you’ve chosen.
If you run into any questions or problems while getting a quote or filling out the life insurance application, you have access to Policygenius’ experts every step of the way.
See details or read our full Policygenius review.
If you need to get life insurance quickly, and don’t want to deal with a long waiting period, Bestow is another great option.
Bestow offers no-medical-exam life insurance and instant approvals. All you have to do is provide some basic information and Bestow takes it from there, using big data to issue a quote.
Bestow issues life insurance policies through the North American Company for Life and Health Insurance, a highly rated provider, so you’ll know you’re getting coverage you can count on. However, keep in mind that Bestow only issues term life insurance policies, so if you want permanent coverage, you’ll need to look elsewhere.
See details/apply or read our full Bestow review.
Ladder offers affordable term life insurance that’s easy to understand and quick to set up online. In fact, the company advertises term life policies starting at just $5 per month.
It only takes a few minutes to apply for coverage and you can get an instant decision.
One of the most impressive things about Ladder is that you can get access to high coverage limits. The company offers term life policies with coverage ranging from $100,000 to $8 million, for people between the ages of 20 and 60. If you’re applying for $3 million in coverage or less, a medical exam isn’t required. You’ll just need to answer some health-related questions as part of the online application.
See details/apply or read our full Ladder review.
If you’re thinking about getting life insurance, it’s best to apply as soon as possible. Life insurance policies are almost always cheaper the younger you are. Purchasing a policy early can also help you lock in a lower rate overtime, if you opt for term life insurance.
Also, remember that it’s never too late to improve your health or make other lifestyle changes that could help you get a cheaper premium. If you stop smoking, take a less risky job, or get off a prescription medication, you may be able to get a new policy and cancel your old one to get a better rate.
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