Let us take a look at low cost term insurance. There are many different
types of term insurance; they are all relatively inexpensive. Accept the
fact that all term insurance policies are not the same.
Some cost much less than the others. Premium costs vary depending on the plan you choose and they also vary from company to company.
You naturally want the lowest premium available but from a quality carrier. You also want to be assured the company is there when you need it. Life insurance companies don't usually run into financial problems.
The carriers that specialize in life insurance are pretty safe. You could have a problem, however, if they sell other type of insurance that are more risky. Think about it, you have to die for them to pay out money, premiums take into consideration how many people at a given age will die within specific periods of time.
They pay out on cash value policies but that is your money that they have invested. Where do you find low cost term insurance? How do you know which are the least costly policies?
The cheapest policies are those that cover you for the shortest period of time. A 5 year term policy will cost you less than a 10 year term policy.
A 20 year term policy will cost more than a 10 year term policy, all things being otherwise equal.
You will also find a difference in premiums between carriers. They all use the same mortality tables so why should the same policy have a difference in rates depending on the company.
It all boils down to how efficiently the company is run.
Do they keep operating expenses down? Are their investments yielding satisfactory returns. The more efficient they are the lower the premiums and as a result the more business they are likely to get.
You may want to see how low cost life insurance plans work.
These policies are some of the least costly term policies available. Decreasing term insurance was designed to pay off the balance owed on a mortgage upon the death of the person making the mortgage payments.
The face amount of the policy decreases each year as the balance owed decreases. The premiums are level throughout.
Yearly Renewable Term
Another quite inexpensive term life policy is the yearly renewable term policy. This policy is usually used for short term needs as the premium increases each year. The older you get the more this policy costs.
5 Year Term
Usually used for short term leads as well the 5 year term policy is also a low cost term insurance policy. This policy can be applied to pay off uninsured outstanding debt.
If you have a child or grandchild in college and you want to guarantee that child graduates you can apply 5 year level term to that need.
10 Year Term
This is also a low cost term insurance policy. It can be used for many of the needs mentioned so far, to pay off debt or to pay college expenses upon the insured's death, but it lasts a little longer.
Sometimes people use the 10 year term policy for a short period of time and convert when they see fit to a permanent policy like universal life or whole life insurance.
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.