How to Get an Affordable Term Life Insurance Policy

iQuanti: Term life insurance policies provide coverage for a fixed period, usually from 10 to 30 years. If you pass away during this period, your policy pays out a death benefit to your beneficiaries, helping them stay financially stable.

Term life policy premiums tend to be more affordable than permanent life insurance premiums. You can take additional steps to secure a great rate without sacrificing coverage. In this article, we'll dive into some tips on getting affordable term life insurance, then walk you through the process of getting a policy.

3 ways to get affordable term life insurance

Here are a few ways you can get a term life insurance policy with affordable premiums:

1. Compare life insurance companies and plans

Life insurance companies may offer you different rates for the same coverage length and amount. It's wise to get term life insurance quotes from several insurers so you can compare costs and find the best rates.

2. Buy a plan sooner rather than later

Younger people are less likely to die of health complications, so they may qualify for cheaper term life insurance rates. Buying a term policy as early as possible can help you secure lower premiums on coverage.

3. Only add the riders you need

Many life insurance carriers offer policy add-ons called riders. Sometimes, adding these riders to your coverage can increase your premiums. To save money, make sure you only get the riders you need.

How to get a term life insurance policy

Getting a term life insurance policy is a straightforward process. Here's how you can get a plan: 

1. Determine how much coverage you need

First, decide how much coverage you'll need. In general, it's recommended to get a death benefit worth 7 to 10 times your annual income. You should also choose your beneficiaries, or the people you'd like to receive your death benefit. If you have several loved ones you want to protect financially, you may need to purchase more coverage. 

2. Shop around and compare quotes

Next, shop around for multiple quotes. You can find free quote forms on life insurers' websites or use a quote aggregator website to get many at once. After you gather some quotes, compare rates and coverage, and choose the best life insurance policy to move forward with.

3. Apply for the policy

Once you've found the policy of your choice, you can fill out the life insurance application. Make sure to have any necessary information on hand before applying, such as your annual income, net worth, your doctor's name and address, your medical history, and your height and weight. 

The application will require you to fill out details about yourself, your hobbies, your other life insurance policies, and more. If the policy requires a medical exam, you can schedule the exam after you submit your application so the insurer can calculate your premiums.

4. Wait for the underwriting process to be completed

Underwriting, or the process where your life insurance company evaluates your application and medical exam results, can take several weeks. During this period, the insurer will assess details like your health information and lifestyle when confirming your eligibility and deciding how much you'll pay in premiums. Simply wait until your insurer contacts you to sign the policy.

5. Sign the documents

Once the underwriting process is complete, the insurer will issue you a policy offer for the term life insurance plan that you can sign and approve. This offer will show the details of your life insurance policy, including premium payments. If you agree with everything, you'll sign the paperwork and pay your first premium. Once you've completed this step, your policy will officially be in force.

The bottom line

Term life insurance can be an amazing tool to provide for your loved ones if you pass away, but you want to make sure you can afford the premiums. First, figure out how much coverage you need, then shop around for multiple quotes to get the best rate. Consider buying a policy earlier in life and only buy the riders you need. Following these steps will help you get the right coverage without breaking the bank.