Affordable Life Insurance Rate

The decision to get life insurance is one of the best decisions a person can make for his or her family. This is coverage that will provide financial continuity to those who may be dependent on the insured for financial security. When a loved one does pass away, grief and sorrow are common feelings, and the stress and burden of financial woes only compounds the stress felt at such a time. As beneficial as life insurance can be, however, nobody wants to pay more for this coverage than is necessary. Those purchasing new life insurance often wonder what an affordable life insurance rate is. The answer to this question is based on several factors.

The Insured
One of the most significant factors affecting the cost of insurance is the insured. Factors such as the insured’s age, health history, lifestyle factors, and more all will affect the rate. Many life insurance companies offer a tiered system, with the healthiest and younger life insurance applicants receiving an excellent rating and qualifying for the lowest rates. Those who will receive the higher rates are those who are in their 40s, 50s or older as well as those who have underlying health issues, and those who have a riskier lifestyle. Risky lifestyle behaviors may include regular use of alcohol, drugs, or tobacco products. This may also include partaking in more risky activities such as skydiving, scuba diving, and more. Buying life insurance while younger and healthier can help to ensure you get the most affordable life insurance rate possible.

The Amount of Insurance Purchased
Another factor affecting the cost of an insurance premium is the amount of insurance purchased. When purchasing insurance, take time to thoroughly consider the financial situation the beneficiaries may be in without the additional income that you may provide at the present time. Factors such additional support for a monthly budget as well as other factors such as paying off debts like credit cards or even a home mortgage, paying for children’s college education, and more are often considered. Many people will purchase enough insurance to ensure beneficiaries are able to maintain their current lifestyle but not enjoy a better lifestyle.

The Type of Insurance
There are two main types of life insurance to consider, and the rates vary between them. The most affordable life insurance rate will be with a term policy. This is a policy that will expire at the end of the term. At that point, you may be financially secure with limited expenses, and you may feel that your family no longer needs insurance proceeds in the event of death. Term policies may be found for lengths as long as thirty years or as short as ten years. The other type of life insurance policy is called universal or whole life. This type of insurance is often considered an investment, as it does not expire and can remain in place throughout a lifetime. It also builds cash value. Some will cash the policy out in their retirement years when it is no longer needed. It can also be used as a source of loan funds, and some will borrow against it to help pay for a child’s college education or other major purchase.

As you can see, there unfortunately is not a catch-all answer to a question of what the most affordable life insurance rate is. Term life policies are generally more affordable, but there are other factors that will be taken into consideration when purchasing a term policy or a whole life insurance policy that will affect the rate. Because rate quotes are customized based on a number of factors, cheap life insurance quotes systems online can be used to generate rates with ease. These customized quotes can be used to determine what the most affordable rates for you specifically are.

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