Cheapest Term Insurance Policies
Getting the cheapest life insurance has become an obsession for most people.
The term life insurance revolution, which I believe began sometime in the early eighties, sparked it to new heights.
Today it continues. Life insurance companies are constantly reducing their rates.
The great thing is that the consumer gains every time…they get the cheapest life insurance rate.
On this page I want to discuss the life insurance policies that people like most and their relationship to each other as far as cost is concerned.
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Cheapest Life Insurance Policies
- The 5 Year Term Policy
The 5 year term policy is one of the cheapest life insurance policies available. Of those we will discuss today this is the cheapest. The face amount is level throughout the life of the policy. The premiums also remain level for the entire 5 year period.
This policy is usually issued between age 18 and 65. Some companies issue it beyond that age. 5 year term can also be issued as a rider to a permanent life insurance policy on the life of your spouse or on the lives of your children.
The premium for the rider is even cheaper than the premium for the policy itself.
If you have a short term need and want the cheapest term life insurance policy you can get then the 5 year term policy or rider may be what you are looking for.
- The 10 Year Term Policy
Many people are quite fond of the 10 year term policy. They seem to be quite comfortable with the 10 year duration of this policy. This is one of the cheapest policies available. It contains a level death benefit that does not change over the 10 year period.
The premiums also are level for 10 years in most cases. Some companies start off with a much lower premium than is usual but increase it after 5 years. It usually remains level for the balance of the 10 year period.
Again, if you have a short term need for life insurance you will find the 10 year term policy to be one of the cheapest life insurance policies you can buy.
- The 20 Year Term Policy
The 20 year term policy is probably the most sought after term insurance policy. It just seems to fit most people’s insurance needs. Although it costs more than the 5 year term policy and the 10 year term policy it is still one of the cheapest life insurance policies you can buy.
If you should die anytime within the 20 year period the face amount will be paid to your beneficiaries either in a lump sum or in the form of a monthly income. Think about it this way, if the policy is large enough you could secure your families’ future forever…if you died within the 20 year period.
Some life insurance companies design the policy so that the premiums remain level for the 20 year period, whereas others increase it after 10 years, and again every 5 years thereafter. Sometimes the premium is increased every year after 10 years.
This policy is ideal for family protection. Business people also use it to fund buy-sell agreements in the event of the death of a partner or stockholder of a corporation. It is also used for key employee …or key man…life insurance.
Any of these policies would serve you well if you are looking for the cheapest life insurance…it just depends on why you need the insurance and for how long.