What is the cheapest life insurance coverage?
Term life coverage would be the cheapest. But its not quite so simple as there are a few other types that are even cheaper. However, you may not want to get them, or at the very least get additional coverage too.
A term life policy that is renewed every year with your employer would easily qualify as the bargain basement life insurance. These are usually paired with a health insurance policy offered by your employer. If your employer offers health insurance and you are taking advantage of it, then ask about the life insurance that is paired with it.
In some cases these add on life insurance policies can be increased to meet your needs. Keep in mind though, that these will only be there as long as you are working for that employer and have the health insurance. This is important to know.
If you change jobs, leave, or get fired, your policy will be gone. You may be able to keep it through Cobra, but it will be more expensive than what you were paying before if you had co-insurance premiums.
I would suggest getting your own Term Life Policy
Get a term life insurance policy that is in addition to any life policies that are included with your health insurance. The reason this makes sense is that every year you get older life insurance becomes more expensive. Therefore, you want to get a term life policy while it is the cheapest life insurance coverage available. After a while, in your 50-60’s you may realize life insurance is just too expensive to bother with.
- term life is cheap
- last for a specific period or term of time
- policies are usually cover the insured for a 10, 20, or 30 year period
- premiums are lost after the term if you live
- face amount goes to the beneficiaries if you pass away during the term
- cheaper than whole life insurance and almost every other policy type except group term life (offered through employers)
Hopefully, you have made plans to take care of life insurance far before you become retirement age. Hopefully, you have your house paid for, a substantial savings, retirement, and other investments too. But sometimes, life just doesn’t work out that way for us. If you have stalled or waited because you were not sure what to do, then quickly look into a term life policy to cover your life in the event you need someone taken care of in your absence.
There is no time like the present to plan for the future. We encourage you to look for a reputable life insurance company like Geico or Primerica to satisfy your life insurance needs. We make zero commissions on telling you this. We make zero commissions if you go buy a policy through them too. We are only telling you this because it is important and we want you to get what you need before spending too much on something so important.
Both of the above mentioned companies are rated very highly for their customer service and for paying claims. You will be glad you did this due diligence if you take action to protect your family or loved ones.