How To Find Cheap Life Insurance in 2021

how to find cheap life insurance

Life insurance is a realistic and viable way to provide financial security for one's family. There are cheap life insurance options for all types of needs, whether you are just starting in your career or have just retired, regardless of income level and background. We have compiled some key information to help you plan ahead and make the right decision to save money without compromising on coverage.

Types of Cheap Life Insurance Options

There are two main types of life insurance available today that meet different needs depending on the customer: term life insurance and whole life also called universal life insurance. Here is a summary of the key features of each.

Term Life Insurance

Whole Life/Universal Life Insurance

● Usually the cheapest insurance option.

● Usually more expensive, up to 15X of term life insurance.

● Offers benefits when the term of the insurance expires or upon death

● Covers the entire lifetime and serves as an inheritance for the beneficiaries

● Ideal if you are the main breadwinner of the family, a stay-at-home parent, a homeowner, or a business owner

● Ideal for high net worth individuals as part of their estate planning investment strategy

● Premiums are usually fixed.

● Premiums can fluctuate over time.

● Can help replace income or support certain expenses

● Can serve as additional income and cater for funeral expenses

● Can be attained without a medical test (no-med exam policy)

● Requires a medical exam

Key Questions for Choosing a Life Insurance Plan

Everyone’s insurance needs are different, but there are general guidelines to keep in mind before choosing a life insurance plan. Answer these key questions as a starting point:

  • Do you have any outstanding debt? These could be student loans, mortgages, etc.
  • Do you have a medical condition or disability that affects your quality of life?
  • What are your current income level and job description?
  • What types of insurance coverage does your employer offer?
  • Which hobbies or activities occupy your free time?
  • What are your future plans for higher education? This means for yourself, your child, or your spouse.
  • Do you have dependents, including children or aging parents?
  • Would you like to incorporate end-of-life care or funeral costs into your final expenses?
  • Do you currently have or anticipate any other financial obligations, for example, starting a business?

The answers will give you a good idea of what type of coverage you might need as you get quotes for life insurance. For example, in their mid-30s, a steady income from a job or a business can get a cheap life insurance plan compared to a senior citizen with medical challenges, whose premiums will be higher. At the same time, someone over 50 without dependents, who needs insurance to cover the remainder of their mortgage payments, may get cheaper premiums compared to a younger individual who enjoys high-risk hobbies like white water rafting.

Insurance providers consider many different factors before determining the best premiums for each person, so understand your situation as a starting point when shopping for life insurance. Your insurance needs should reduce over time because other corresponding needs will also decrease, such as mortgage debt and financial support for children as they become independent.

Calculating Life Insurance Premiums

A big challenge facing the life insurance industry is the perception that it’s too expensive. The truth is that life insurance is almost always cheaper for younger people, so the earlier you start buying life insurance, the better in the long term. At the same time, older individuals can still get affordable life insurance, especially if they're healthy, and you can skip the medical exam if your coverage needs are under $50,000.

Each life insurance provider has their method of measuring risk, and they will typically ask you about your finances, hobbies, driving record, and medical history (height, weight, cholesterol, and blood pressure) to determine your insurance quote. Certain providers offer affordable premiums for marijuana smokers, senior citizens, or other high-risk individuals because of their underwriting terms.

Our research has shown that women tend to pay cheaper premiums for life insurance than men, such that a 35-year-old man paying for a $500,000 life insurance plan will pay an average of $29 per month, versus a woman of the same age and policy plan will pay about $25 per month. Using this same example, we find that the monthly premiums increase by age as well, where a 35-year-old man will pay $29 per month for a $500,000 plan, compared to a 55-year-old man who will pay about $151 for the same plan. Our findings are based on non-smokers looking for a 20-year term life insurance.

It also makes financial sense to buy life insurance when younger because the premiums will be cheaper and because premiums tend to rise from between 5% and 9% for each year you postpone buying life insurance. In addition, the rate you purchase when young remains locked for the entire duration of the policy, so you'll be paying low amounts for decades to come. No-exam policies can offer opportunities for elderly clients or those with health conditions to find life insurance plans much faster because the medical exam waiver allows for quicker processing time compared to a traditional life insurance plan. All these variations show us why it is important to get quotes from different providers when buying life insurance.

Affordable Life Insurance Providers for 2021

We have found the top 5 cheapest life insurance companies for 2021 based on age, gender, policy duration, and coverage amount. We considered that a woman aged 35 years who is of average health, seeking 20-year term insurance to offer $1 million in coverage, will pay the lowest premiums from these providers:

  1. Banner Life (approx. $47 per month)
  2. Pacific Life (approx. $47 per month)
  3. Principal (approx. $47 per month)
  4. Protective (approx. $57 per month)
  5. Mutual of Omaha (approx. $61 per month)

The great thing about term life insurance is that you choose the duration you need and the coverage you wish to receive. So whether you want a $500,000, $750,000, or $1,000,000 cover, the monthly premiums can be flexible for you, making life insurance an easy and affordable investment into your financial security.

Final Tips for Finding Cheap Life Insurance

With so many options available, it is important not to underestimate or overestimate the amount of life insurance you will need. Pay too little, and your beneficiaries will be left unsecured, pay too much, and the extra premium costs will become unsustainable. The safest bet is to choose a life insurance coverage that is at least 10 to 15 times your current income and then estimate the premiums accordingly.

Since life insurance is a long-term plan by definition, you can also take out more than one policy at the same time, each with expiry at various stages in life. For example, one life insurance policy for a child can reach maturity at the child's 18th or 21st birthday, while another policy can expire once you have attained your Ph.D. education. This type of insurance strategy can cut your overall premium costs by half compared to buying a larger, more traditional plan.

The Way Forward

It is best to buy a life insurance policy when you are younger and healthier. However, there are also many options available for seniors and higher-risk individuals. Shopping for cheap life insurance can save you up to $1,300 every year, so the wisest thing to do is compare quotes across multiple insurance providers. can get you up-to-date quotes from the best life insurance carriers in the US today. Contact us and begin the ultimate price comparison and a shopping experience that will match your needs in 2021.