Comprehensive Life Insurance with Budget-Friendly Premiums in 2024

Discover Comprehensive Life Insurance with Budget-Friendly Premiums in [2024] + YouTube Video

Learning how to find the best life insurance with affordable premiums is a straightforward process. This is accomplished by applying with the most cost effective insurers and choosing the best plan design for your specific needs.  

Keep reading and we will cover everything you are going to need to know so you can secure a new life insurance policy that offers the financial protection you are looking for and will also fit your budget.

Also, you surely don’t want to encounter any complexities or aggravation along the way, so the more information you provide your agent with the better.

The concept is the same when searching for the best companies and policy designs.

Reading this blog post will give you valuable insight into applying for the best life insurance policy and simultaneously getting the lowest rates.

 

Why Should I Work With an Independent Insurance Agent?

Independent agents can shop the entire market for you so you can be sure you get the best rates, unlike a captive agent who can only show you only one insurer.

Purchasing the best policy will require help from an experienced independent agent. There is far too much involved in trying to do this by yourself.

Why would you even want to when there is no cost to have an agent help you? A captive agent, like State Farm, sells only one company’s products.

Captive agents limit your ability to shop the market, which is virtually the same as driving with handcuffs. This will never work when looking for the very best rates. Instead, an independent agent uses all the top-rated companies available. 

This way, you are always assured of getting the lowest premiums. Getting the best policy is easy when you have an expert helping you.

 

How to Secure the Lowest Term Life Insurance Rates in 2024: YouTube Video

 

Why Should I Buy Life Insurance?

The primary function of life insurance is to shield your family from financial hardships after your passing.

If your income suddenly stops from your untimely passing. Who is going to suffer from this terrible event? Of course, you will probably say it will be your spouse and children.

The bank that holds your mortgage will also suffer, but they will pass the burden onto your family instead. This holds for your car payments, credit cards, and anything else you have a financial obligation with. When the smoke clears, your dependents will be responsible for your debts.

Finance companies are never very forgiving when it comes to unpaid loans. When you look at the complete picture, you will see a huge financial mess. Your dependents will be caught right in the middle. This will usually change your dependent’s lifestyle forever.

Unfortunately, many people roll along without life insurance and leave their dependents to walk that financial tightrope. They commonly use the concept, “why should I worry about it? I will be dead”. I actually hear people say this regularly on a regular basis.

 

What Face Amount Should I Apply For?

*The face amount (Death Benefit) you choose is very important. Here are a few determining factors to consider before you apply:

Determining Face Amounts:

Most life insurance experts recommend purchasing enough coverage to replace approximately seven to ten years of your income. The most critical factor is whether you can afford to buy this much coverage without breaking the bank.

This will depend on how old you are when you buy your policy. Also, if you have any medical conditions that can increase your rates. 

Special Care Dependents:

Do you have any dependents that need special care due to medical issues, either physical or mental? You should allow for more coverage to compensate for their additional needs.

Large Families:

If you have a large family with more than four children, you should compensate for this with additional coverage with numbers such as $100,000 per child.

Employer Coverage:

Quite a few people are covered through their employer. You cannot count on your company’s policy because nobody has guaranteed job security. Suppose you do have life insurance through work. Just make sure you are adequately covered by your policy.

If you are terminated, your employer’s group policy could go up in a puff of smoke. This could also happen if you are laid off or your employer has a benefit cut-back, which is very common.

Excessive Debt:

Some people have excessive obligations above and beyond average financial liabilities. This can stem from a home that is above their safe financial means. Also, a larger-than-normal car payment can cause additional financial worries.

The average person will often not consider this when they buy life insurance. Having that new Mercedes-Benz in the driveway is excellent if you can comfortably afford to pay for it. 

 

What Type of Policy Would Be Best for My Needs?

Term Life Insurance:

There are two main types of policies to consider. These are low-cost term life insurance products and permanent life insurance. Affordable term insurance will be your best bet, with the lowest rates. However, keep in mind that a term policy is a temporary form of coverage.

These plan designs have term periods of 10, 15, 20, 25, and 30 years. Banner Life insurance company recently developed a 35 and 40-year product. This is excellent news for many younger people. This increase in the term period can be just what the doctor ordered.

Remember that these policies must be purchased with the correct term period so they do not expire when you still need it. If you are buying for too short a term, you could find yourself without coverage when you still need it. It happens to many people each year when they do not plan correctly.

Universal Life Insurance:

People will often need coverage for over 30 years, which is the maximum for most term policies. There are two types of permanent life insurance products, Universal Life and Whole Life. Whole Life is no longer practical due to the high cost.

Also, many companies have dropped it from their product line. However, universal life insurance products are the best way to go if you are looking for life insurance that will last for the rest of your life. 

 

Medical Exam vs No Medical Exam Policies

For the most part, no medical exam life insurance means no medical exam is required. In other words, this means no para-med nurses are coming over for a visit. You still have to complete a medical questionnaire to apply and be approved. If any major health concerns are listed on your application, the no medical exam part will stop dead in its tracks.

You would then have to complete a paramed exam to allow the insurance company to examine how much risk they are taking. If you are in good health, no medical exam policies are acceptable, but they will always cost more in the long run. The most common versions of these policies are guaranteed issue and simplified issue. 

However, fully underwritten policies are the conventional types that offer the lowest premiums as a rule. These policies require a medical exam performed by a nurse at your home or place of employment. They offer the lowest rates because the carriers can learn more about your lifestyle and health history.

Life insurance companies can offer you the best insurance policy at the lowest possible rates if you are healthy. Most people choose the fully underwritten policy designs to receive the lowest premiums.

 

Additional Insurance Products to Consider:

Simplified Issue Life Insurance:

The simplified issue product line can be built on a universal or whole life chassis. This policy usually waives the medical exam but requires a detailed medical questionnaire. The average limit for face amounts will be $250,000, but some companies will increase it to as high as $350,000.

These policies will cost more than fully medically underwritten policies.

Variable Universal Life:

A variable universal life policy allows you to decide precisely how you want your cash value to be invested. You can make this decision independently or have professional financial help. However, just like investing in stocks, you can lose some or all of your cash value with the variable version.

 

Individuals Differ in Their Coverage Requirements

High Incomes:

People with higher incomes and who live within their means are a perfect example. Today, most Americans live above their financial means and go from paycheck to paycheck. As a result, upper-income people tend to use more caution when spending money. They also tend to be more careful when using credit.

Single People:

Single or married couples with no children usually do not need as much life insurance. This is primarily true if both spouses work and have steady incomes.

No Mortgage:

If your home is paid off or you have a minimal mortgage. This can significantly impact the size of the face amount you need.

Significant Savings:

Consumers with considerable savings can go with a lower face amount.

Family Heirs:

Some people will be natural heirs to their parents’ estate, creating less need for life insurance. If individual parents own property such as a home or business, this can make all the difference.

Parents may also have policies that pay a considerable face amount. All these factors will enable the son or daughter to purchase much lower death benefits than others.

 

Purchasing Life Insurance for Special Requirements

Divorce Settlements:

People going through a divorce can be ordered by a domestic relations judge to purchase a policy. They are applying for life insurance for a divorce settlement, just like typically purchasing life insurance. The only exception may be that the court will quickly order you to produce a life insurance policy.

This is where no medical exam life insurance can be beneficial. Non-exam policies can have a brief turnaround period of as little as 24 hours. The main reasons a policy is requested are for children and their financial future.

Commercial Investments:

Often, people buying a business or commercial real estate will be required to purchase life insurance. This could also be for partnerships with a first-to-die clause or for key employees.

Mortgage Insurance:

Periodically, people who take out a loan to purchase a home will be asked to produce mortgage insurance. This will pay off the mortgage if the homeowner dies within the mortgage term.

Buy/Sell Agreements:

When an individual purchases a business, a buy/sell agreement is written that would also require a policy. This is more of a specialized policy but is used regularly for commercial purposes.

Estate Taxes:

When people in higher-income classes pass, their dependents must pay an estate tax. This is where a term policy can be used to pay off estate taxes, so they are left with the entire inheritance.

 

Beneficial Riders to Consider

Riders can be beneficial in most cases but usually come as an added expense. Let’s look at some of the more common riders to see if they would benefit you.

Return of Premium Riders:

The return of premium rider will enable you to receive all the premiums paid if you outlive the policy terms. For example, if you bought a 20-year term policy. You will have spent a total of $18,500 over the 20-year term period. After 20 years have come and gone, you may still be alive.

You will receive a check from the carrier for the total amount you paid. These return of premium policies have higher premiums, so life insurance companies can afford to do this.

Accidental Death Benefit Rider:

These riders can increase your death benefit if you are killed as the outcome of an accident. Some companies offer these riders an even higher increase if you are killed on a common carrier. This would include trains, airplanes, and ships.

Waiver of Premium Riders:

Waiver of premium riders can keep your coverage in force if you become disabled and cannot afford to pay your premiums.

Accelerated Death Benefit Riders:

Accelerated death benefit riders can trigger your coverage under certain circumstances early if you are diagnosed with a terminal condition.

 

What Methods Can Be Used to Lower My Insurance Premiums?

1. Always Take the Medical Exam!

Don’t choose the non-medical exam life insurance route because you don’t like to take physical exams. The exam you will receive from the insurance company’s para-med nurse will only take about 15 minutes. This can save you thousands of dollars while you’re paying premiums every year.

I wouldn’t say I like to take exams, but I will take one if there are financial savings to be had.

2. Don’t Procrastinate!

The longer you wait, the higher the quoting rates go up. Buy your policy as soon as possible to lock in your rates. People are famous for procrastinating, which can only cost you money every month or year you wait. The older you get, the higher the cost of a new policy.

On top of that, the longer you wait, the chance of new medical conditions coming into the picture increases. If you have a pre-existing medical condition, you could easily find yourself uninsurable.

3. Purchase Low-Cost Term Life Insurance

Your best bet will be affordable term life insurance 95% of the time unless you need coverage for the rest of your life. If you need permanent insurance, you can purchase universal life, which will be much more cost effective than a whole life policy. You can also combine term and universal life for a tremendous money-saving life insurance package.

4. Don’t Waste Your Time With Multiple Agents

All life insurance rates are regulated by law in every state of the US. If there is one concept you need to understand, it is that insurance brokers and agents cannot discount rates. Your state’s Department of Insurance regulates premiums.

Every other insurance agent in the nation will show these same rates with no exceptions. Even purchasing directly from the company will result in the same rates. So if you find an agent or broker you like, stick with him; otherwise, you will be wasting your valuable time and getting confused.

Many people go from website to website, looking at life insurance quote engines and seeing the same rates every time.

 

Can I Apply for Coverage Over the Phone?

Modern telephone applications are all we recommend now. Paper and online applications are obsolete if you want to save time and apply in the most efficient way possible.

If you remember, the paper application used to contain about 25 pages, and having a case of writer’s cramp was a sure thing when you were done.

The online application was much better, but many people would get confused about completing it if they did not have sufficient computer experience.

You will also need a fast internet connection to perform the online application properly.

The telephone application will allow you to sit back and listen to a very friendly gal ask you questions, and you answer them. Nothing could ever be more accessible when applying for life insurance.

 

There You Have It!

I hope this information will make you a more intelligent consumer in your quest to buy the best life insurance policy.

A good agent can make the whole process easy, and we have been helping people find the best products for over 30 years.

We will be happy to answer any of your questions about life insurance and how to apply for the best policy for your needs and budget seven days a week.

All the best,
Jack Venturi

Should you have any questions or need further assistance, please don’t hesitate to call us at 815-390-7545 for a prompt response.