Looking for cheap life insurance? Maybe, to be more accurate you want the best life insurance policy for your situation at the best price.
The cheapest policy may be the best but on the other hand it may not be for you. The best way to illustrate this point would probably be through actual examples.
Married Male With Children
You are a married male with 2 young children ages 3 and 5. You are very aware that you must have some life insurance to protect your spouse and your children in the event you should die while they are still dependent on you.
You are looking for a cheap life insurance policy as you just put out a large chunk of money to pay down on the family home. You have a limited budget for your insurance project.
The yearly renewable term and the 5 year term policies are quite inexpensive but they wouldn't be right for your situation.
Your youngest is age 3 and you want to feel comfortable that s/he will be able to go through school, straight through college, graduating by say age 25.
You need life insurance coverage for at least 23 years. The 25 year level term policy would be ideal for such a situation.
You should provide sufficient insurance to replace your income if you are the sole financial provider for the family. If your wife works as well you then prorate the amount based on the amount of income you will need to replace.
Remember, you just made a down payment on a home. I would be wise to buy a policy that would pay off the mortgage in the event of your death as well.
After the kids have graduated and are on their own you are likely to still need some life insurance. You may want to provide sufficient cash to pay last expenses in the event of your death.
You wouldn't want to leave that for your wife to pay out of her funds. If you can qualify, you could buy another term policy at that time.
Keep in mind as you go through life that most term policies have a period wherein you can convert your policy to a permanent policy if that is the wise thing to do at that time.
Single Parent In Similar Situation
If you were a single parent with children the same age looking for cheap life insurance the recommended policy would do the job as well. Naturally, if the ages of the children were different your need would be different.
You should always calculate the time period that you would need the policy based on the age of the youngest child in the family. Depending on the ages the 10 year term, 15 year term or 20 year term policies would fit the bill.
Term life insurance is cheap life insurance. The premiums will always be lower than the other type policies. Other policies like universal life insurance or whole life insurance serve a useful purpose for some but you need to put out more premiums.
You must qualify for your policy regardless of which type you elect to take.
When we think of affordable life insurance, or affordable anything for that matter, we often, mistakenly, think of a product that would require the least cash outlay.
Many life insurance buyers find the 30 year term insurance policy quite attractive. It fulfills their needs. Who, what kind of buyer, would buy the 30 year term policy.
The 20 year term insurance policy is probably the most loved and most bought term life insurance policy. The reasons for this are pretty obvious. People tend to think 20 years when planning long term.