How to Buy Affordable Life Insurance

Posted by Shaun Morgan in InsuranceOctober 26, 2022(Last Updated October 31, 2022)3 min read
Key Takeaways
  • Life insurance is a great investment because it can financially protect your family if you pass away unexpectedly.
  • Life insurance can help your family pay off debts, living expenses, or any final expenses.
  • Online-based life insurance providers have dramatically cut costs, making life insurance more affordable.
Are you ready to make some real money moves?

You might be thinking that affordable life insurance is an oxymoron. If you went to a financial advisor to get life insurance, you’d probably be right. But there are many different options available today for life insurance that are surprisingly affordable.


So if you’ve wondered about getting life insurance or wish you could afford it, this article will help you understand where to buy inexpensive life insurance and why certain types of life insurance cost less or more than others.


Recommended Read: How Life Insurance Provides Financial Security for Your Family After You're Gone


How to Determine the Right Amount of Insurance?


You can get a life insurance policy ranging from $25,000 to millions of dollars. This will depend on the company you use, so be sure to shop around for your needs. The less money you need for insurance, the lower your premium will be.


Talk with your significant other, trusted family member or friend about how much money your dependents will need should you pass away unexpectedly. Consider this carefully, and purchase the best policy that will cover the needs of your beneficiaries.


 cheerful couple sitting on the couch reading life insurance terms


Term Life Insurance vs. Whole Life Insurance


Sometimes, a whole life insurance policy makes sense. But for most people, a term life insurance policy will be more affordable and just as beneficial as a whole life policy.


To put it simply, a whole-life policy is intended to cover you with insurance until the day that you die. However, since there is a guaranteed payout at some point, the premium will be much higher to ensure that the insurance company doesn’t lose money.


On the other hand, a term life insurance policy is only for a certain amount of time—usually between 10 and 30 years. The insurance company calculates the likelihood of your death during that time frame and then adjusts the premium accordingly. Since there isn’t a guaranteed payout, these premiums can be much smaller. Also, the younger you are, the chances of you passing away unexpectedly are decreased. 


Recommended Read: Trust vs. Will: Differences to Note in Estate Planning


Online-based Life Insurance Providers


Several life insurance companies now offer online-based policies, meaning you can shop for a policy for free and get an instant quote on your rate. For some young individuals, you can even get a policy without a medical exam.


Using online tools to handle most of the underwriting and calculations has allowed life insurance companies to cut costs considerably. As a result, when you get a life insurance policy online, you’re much more likely to get an affordable policy.


Father and his son playing outside in their yard


Furthermore, for any online purchase, such as car insurance or health insurance, it’s important to research the company and its website before deciding to buy. Shopping for a life insurance policy online is safe if you buy it from a legitimate company. Many companies that run solely online also have agents or salespeople to help if you have a question or concern about the product you are purchasing. 


Life Insurance Through an Organization


Many organizations offer life insurance to their exclusive members. While this doesn’t guarantee the best rate, these organizations often negotiate with the insurance company to get a bulk discount. So when shopping for the most affordable life insurance, it is a good idea to look at any life insurance offers from groups you’re a part of, such as an auto club, exclusive shopping membership, or a credit union.


young mother taking kid bicycle riding


Recommended Read: Legacy, Legacy, Legacy: Planning With Life Insurance (Part I)


The Money Wrap-Up


Life insurance can be as affordable as a subscription to a streaming service or filling up a tank of gas. In addition, insurance companies are finally adapting to using technology, and the data on the likelihood of death is getting more precise every year.


With the average life expectancy rising and advances in medical technology taking leaps forward, life insurance companies are confident that they will come out ahead.


With all of these great advances, life insurance is cheaper than ever. So if you’ve been thinking about getting a life insurance policy, now is the time to do it. Plus, you can have peace of mind knowing that you are financially protecting your loved ones.

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