7 Ways to Get Dirt Cheap Term Life Insurance

The biggest excuse that people have have for not buying life insurance is they say it costs too much.

Really?  Too much?

A recent survey found that those that had life insurance 2/3 of them paid less than $100/month for coverage.  Of those, almost half paid less than $50/month.

Did you catch that?  $50/month for cheap term life insurance.

Let’s get things straight: Life Insurance is NOT expensive.IMG - 7 Ways to get term life insurance dirt cheap

In fact, term life insurance is super cheap. Stop making excuses and buy some.

Here are seven tips in helping you get the cheapest term life rate possible.

1. Don’t procrastinate.

Unless you’re Jack Palance and you’re doing one-arm pushups at the Oscars at the age of 70, the chances are as you get older, your health is going to decline. Surprise, surprise. Procrastinating in buying your term life insurance can have a drastic impact when you go to actually apply.

I know what you’re thinking:

Oh, nothing will ever happen to me.

Tell that to the 37-year-old male who had no prior existing condition but had a heart attack at the age of 32. Luckily, he’s okay, but due to complications that resulted from the heart attack, getting life insurance is not impossible, but it’s super expensive. Super expensive does not equal cheap.

2. Cut out the crap.

how to get cheap life insuranceIf your idea of the three healthy food groups are Cheetos, hot dogs and Ben and Jerry’s, then eventually you’re going to pay in more ways than one.

Eating crap, aka  junk food, can have drastic effects to your cholesterol, diabetes and high blood pressure, which can crank up your insurance premiums super quickly.

Other crap includes smoking, chewing tobacco, and even over consumption of alcohol. Cirrhosis, anyone?

If you’re trying to get the cheapest term life rate possible, you have to cut out the crap.

I had a buddy of mine who was young and in good health, and applied for term life insurance. Initially I had quoted him the best rate, preferred plus. Little did I know that he had a secret habit of chewing tobacco. His rates almost tripled because of it.

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3. Slow down.

A good friend of mine used to drag race cars as a weekend hobby. Supposedly, that weekend hobby transferred over into wherever he drove. His lead foot resulted in several traffic violations, not only increasing his auto insurance premium, but also jacking up his life insurance premium.

Stop driving like Jimmie Johnson – you’re not a NASCAR driver!  Make sure that your term rates don’t get caught speeding, too.

4. Don’t forget the family.

When applying for life insurance, many people don’t realize that family history comes into play, too. Even if you are super fit, but you’ve had a parent pass away prematurely (think before the age of 70), for a condition that could be hereditary, like heart disease in fathers for sons, or breast cancer in mothers for daughters, it could mean bad news for your insurance premiums.

If those conditions took their life, that can mean an immediate disapproval in the worst case scenario, or a higher rated class in the best case scenario. Obviously, some conditions you can’t control with your parents, but if they’re not exercising and taking good care of themselves, you have an incentive to speak up.

5. Shop independently.

Back in the day, my wife used to sell insurance for a big outfit. Since I was also able to offer insurance, we did a comparison. We based it off a quote that she did for a male individual applying for term life. When we ran the quote, her with her company and me with my brokerage firm that can use any carrier, amazingly, it was actually more expensive to go directly through her, even though we were both offering the exact same company and the exact same products. Lesson learned: it pays to shop around.

Using a captive agent could be much more expensive, even if you bundle all your policies together. Make sure to use an independent agent who can quote you among various carriers. This is even more crucial if you have some type of health condition that qualifies you as a high risk individual.

6. Stop living like Sir Richard Branson.

cheap term life insuranceIt’s always fun to take a little bit of risk to get your heart rate going. Scary roller-coaster ride, skiing, tubing behind a boat are all good examples of this. Life insurance companies don’t think twice if you partake in any of these activities.

If you’re a sky-diver, space jumper, crocodile wrestler, that’s a completely different story. Just because Richard Branson likes to do crazy things doesn’t mean that you need to too, especially if you’re trying to get cheap term insurance.

7. You can’t handle the truth.

I recently took a call from a gentleman who was applying for life insurance and had recently gotten turned down by MetLife. He had used Select Quote as his insurance provider, and he had failed to disclose certain information about his past: a certain health condition. Through underwriting, the health condition was discovered, and sure enough, he was declined.

When applying for life insurance, you have to be transparent. You must share everything about your medical history, especially if it’s going to come back on your records. You might not be able to handle the truth, but the insurance companies will, and will do so by denying you.

Getting cheap term life insurance is not difficult.  Get your free quote now.

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Comments | 13 Responses

  1. bryan says

    “If you’re trying to get the cheapest term life rate possible, you have to cut out the crap.” – We could reduce health costs significantly if we just lived healthier.

  2. Ashley says

    It’s worth noting that life insurance brokers usually receive the first years premiums as commission. Knowing this gives you a LOT of bargaining power and can discount your deal by a lot in the long term.

    • says

      Ashley, are you saying that you can actually bargain with the life insurance agent and ask them to take less of a commission so you can lower your rates?

    • says

      Depending on the condition, certain life insurance carriers will not take into consideration family history. For example, some insurance carriers might automatically decline a female applying for life insurance if her mother passed away due to breast cancer, where others won’t even consider it. That’s why it’s important to work with an independent agent that’s in the know of what carriers you should be shopping your quotes with.

      FYI, if you need some help getting a quote feel free to hit me up. Be glad to see what options are out there for you. :)

  3. Tim says

    On the last one about telling the truth, what if you die due to something you failed to disclose? Have you heard much about life insurance companies denying a payout for one reason or another?

    • says

      @ Tim I have heard of a few situations where an insurance company didn’t pay but those are typically obvious cases where the client blatantly lied on the application. Sometimes it goes overlooked, but it’s a risk not worth taking.

  4. Jim Tobin says

    Jeff, nice blog!!
    An interesting case with you and your wife’s firm. Rates as you knoww are approved by the state DOI and should be the same regardless of agent. Nonetheless, using an independent over a captive almost always makes sense as the indy has no incentive to push an inferior product.

    Ashly, rebating insurance commissions is illegal in most states …so no bargaining power.

  5. says

    These advice is really helpful . If your going about purchasing the type of insurance that you want you must think it over. You really just need to figure out the type of coverage you need and how long you need it for.

  6. says

    These are really good tips for those who are searching for term life insurance. But I don’t feel that family history should affect the policy. My father is affected with heart disease and my mother family has diabetic problem. First one is highly risky for insurance provider. But how can I know which one will affect me. So I don’t feel it is good to take family history in consideration.

  7. says

    This are really nice tips. We must take care of ourselves to get cheaper but better insurance coverage. I think term insurance is one of the cheaper forms of insurance available.

  8. Karl says

    These are great tips! Life insurance coverage is so important, yet so many people do not realize that it is possible to achieve cost-effective life insurance premiums. Taking care of yourself is your best bet.

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