When you hear the words “life insurance” most people think “expensive.” In fact, 44% of Millennials overestimate the cost at five times the actual amount.1
Finding an affordable life insurance product may be easier than you think, though. Consider the following information to help you protect your loved ones without breaking the bank.
Consider the different types
All life insurance products provide a death benefit to your beneficiaries if you pass away. There are many different types of insurance you can choose from, though. And some, such as term life and whole life, can be more affordable than others.
Why is term life insurance less expensive? It’s the simplest form of life insurance and only lasts for a specified time period, usually 10, 20 or 30 years. While some companies offer additional benefits on their term life insurance that you can use during your lifetime, there is no cash value built up in these policies.
What is affordable whole life insurance? Whole life insurance, while more expensive than term life, can be an affordable option to consider if you need permanent protection (protection that will last throughout your life) or if you’d like to have the ability to borrow against the cash value of the policy in the future.
Universal and variable life are two other permanent products to consider that offer cash value and investment opportunities.
So, while cost is important, it’s not the only factor to consider before making a purchase. Learn about the different products that are available and their unique features to see which one would best meet your needs.
Life insurance carriers all charge a slightly different amount for their products. Once you know the type of life insurance you want, compare the costs and features of different companies' policies to find the option that you’re most comfortable with.
Nationwide® has a team of insurance specialists that you can call at 1-866-207-9160 to help you get a quote, or answer questions you may have about what insurance would be best for your needs. You can also get a Nationwide term life quote online.
Buy life insurance early
One of the biggest factors for the cost of life insurance is age. Don’t wait until you lose those last 10 pounds. The sooner you apply, generally speaking, the less expensive it’ll be.
When you purchase a policy, you lock in the premium, or payment, amount. So, if you purchase a term life insurance policy for 20 years, you’ll be paying the same amount per month at age 50 that you were at age 30.
Maintain a healthy lifestyle
It’s common to wonder what affects your life insurance rates. Your age, health, occupation, where you live, your gender and even your hobbies can determine the affordability of your coverage. To get the lowest premiums possible, it’s important to maintain a healthy lifestyle by:
- Eating healthily
- Exercising frequently
- Not smoking
- Driving safely (drivers who have a number of at-fault collisions on their records are put in a higher risk category)
- Having hobbies that are not dangerous (such as rock-climbing or motorcycling)
Complete a medical exam
While it’s possible to get life insurance without taking a medical exam, skipping this step likely won’t be the cheapest option. When an insurer doesn’t have all of your medical information, they can’t offer you the most affordable rates. These types of policies tend to provide less coverage than a traditional policy, too.
If you will be completing a medical exam, there are a few simple, short-term things that you can do to make sure your body is the best possible form for the exam, including:
- Eat healthily — for best results, avoid processed foods with a lot of sugar, salt and fat before the exam, and eat more vegetables such as leafy greens
- Drink water — start drinking eight glasses of water a day the week before the exam to help clean out toxins that can show up in your blood or urine sample and to make it easier to draw your blood
- Consider fasting — eating before the physical can affect your cholesterol and glucose levels
- Skip the gym — exercise, especially cardio work, can raise your pulse and blood pressure, as well as negatively affect your cholesterol levels and the protein levels in your urine
- Get a good night's sleep — you feel better after a good night’s sleep, and your vital signs will reflect that in your pulse and blood pressure
- Wear lightweight clothing — your weight can affect your rate class, so wear lightweight clothing to help get an accurate measurement
Get more value for your money
There are additional coverages you can get with some life insurance products. For example, Nationwide term life insurance policies of 15 years or more include critical illness coverage. So, if you suffer a medical emergency such as a heart attack, you can access some of your death benefit to help offset your medical costs.