#1: Lock in Low Term Life Insurance Rates When You're Young
You may think you only need term life insurance if you’re a mature adult, but term life insurance rates are very
affordable for young people. Locking in as much protection as possible when your health is sound and term life
insurance rates are cheapest is a good financial decision.
#2: Don’t Buy More Coverage Than You Need
If you purchase more coverage than is really necessary, your term life insurance rates could skyrocket. Most financial
planners recommend a policy amount of around 6-10 times your annual gross income.
#3: Select Coverage Lengths Wisely
It’s important that you select an appropriate length of coverage to keep your term life insurance rates affordable. Individuals who have
a 30-year home mortgage, for example, might consider a 30-year policy to protect their home throughout the life of the loan. On the other hand,
individuals who are nearing retirement may only require a 10-year term.
#4: Take Advantage of Coverage Level "Price Breaks"
Many insurance companies offer “price breaks” at certain coverage amounts (e.g., $75,000 vs. $100,000).
Pay attention to those levels—you may pay very little for additional coverage.
#5: Shop Around for the Lowest Term Life Insurance Rates
The best way to find cheap term life insurance rates is to shop around. Term life insurance rates vary by hundreds
of dollars among different companies, so comparing prices is always worth your time.