The Do's and Dont's of Finding Affordable Term Life Rates

Here's what you should do and avoid doing to find the cheapest term life insurance rates.

Everyone likes to save money on term life insurance rates. Let’s face it -- cheap term life insurance is the goal! The following do’s and don’ts might help you get the cheapest term life insurance.

Cheap term life insurance: 5 Do’s

1. DO Ask Questions

To get the cheapest term life insurance, talk to an agent and ask questions. The cheapest term life insurance takes a little research. Sometimes a question or two will help you choose term insurance that provides more and saves more. Consider asking:

1) What is the term insurance company rated?
2) What is the term insurance company’s financial strength?
3) Can the term insurance policy be converted to permanent?
4) Are there any hidden fees?
5) Is the life insurance term set in five-year increments, or can I name the number of years?

2. DO Answer Honestly

Answer all questions honestly. Sometimes people are tempted to hide or downplay tobacco usage, medical conditions, high-risk activities and more. Medical tests and records can reveal the truth, which can lead to being denied coverage. Also, if you get covered and the term insurance company discovers you were dishonest, trouble ensues. For example, if you hide that you're an avid sky diver and they find out, you face a hefty term life insurance rate increase, getting canceled, or having your beneficiaries denied their money if you die in such an activity. Cheap term life insurance is worthless if the policy gets canceled or the claim gets denied.

3. DO Request Term Insurance With a Medical Exam

The cheapest term life insurance policies require a medical exam. Exams allow the term insurance carrier to base your term life insurance rates on your actual health. Otherwise, they average your risk of dying with everyone else’s. Rather than healthy people paying a cheap term life insurance rate and less healthy paying higher term life insurance rates, the carrier averages the cost and everyone pays the same. If you are healthy, a medical exam is your best bet to get the cheapest term life insurance.

4. DO Consider Everything You Need Covered

Many people think of term insurance as a way to replace income. This is great, but it’s just part of the story. Financial hardships can also arise from:

1) Mortgages
2) College tuition, board and fees
3) Vehicle loans
4) Consumer debt (credit cards and other loans)
5) Childcare
6) Caring for an elderly parent

Cheap term life insurance: 5 Dont’s

1. DON’T Wait to Get Cheap Term Life Insurance

Don’t wait for something to change in the hopes of getting cheap term life insurance. Waiting until you have quit smoking, lower blood pressure, a healthier weight, better cholesterol, or any reason puts your loved ones at risk. Not only that, but term life insurance rates increase as we age. Waiting for lower term life insurance rates might backfire and end up costing you more when you do decide to buy.

2. DON'T Pay for a Medical Exam

As mentioned, cheap term life insurance requires a medical exam. But don't pay for it! Highly rated companies organize it at no cost to you. Getting your own exam costs money, and worse, the results will probably not be accepted.

3. DON'T Accept High-Pressure Sales Hype

Cheap term life insurance doesn't mean cheap methods like high-pressure badgering and scare tactics. Term insurance is an important purchase. You want the right amount, the right term and the right price. If an agent gets pushy, consider ending the call. Your peace of mind should start with a peaceful process!

4. DON'T Look at Just One Term Insurance Carrier

Affordable term life insurance means comparison shopping. Even if you find cheap term life insurance, comparing can validate it's the cheapest term life insurance for you. Companies like Matrix Direct shop multiple term insurance carriers, which makes it convenient. Just make sure it's an apples-to-apples comparison, using the same term, face amount, etc.