Guide Get the Cheapest Life Insurance

1Select term life insurance unless you have a compelling reason to choose a whole life product. Term life costs a fraction of the price of a comparable whole life policy.
Whole life insurance covers you for as long as you're alive, as long as you keep the policy in force. Most whole live policies also accumulate a cash value, making them a kind of investment instrument as well as an insurance policy. These features make whole life an expensive insurance option in early policy years. Whole life policies can pay for themselves in later years through dividend payments made from the insurance company.
Term life insurance works like most other kinds of insurance. You pay your premiums for an agreed-on period of time. If you're alive at the end of the period,the insurance company keeps your money. Term life insurance makes sense if you do not need insurance coverage for your entire life. This makes it the cheapest form of life insurance.

2Ignore the hype about quality or service from insurance companies you don't personally know. Your treatment under a life insurance policy is required by state and federal law - and most life insurance contracts are nearly identical. In fact, all states in the United States have a state guaranty association which guarantees your benefits will be paid. Unless you're working with an agent you know and trust, you should typically go with a cheap life insurance premium instead of a pricier one with better PR. In most cases agents will not compare quotes from other companies.

3Check all your cheap life insurance offers with the A.M. Best group. This organization assigns letter grade ratings to all insurance companies, based on their financial stability and ability to pay claims. Although the law is the same for all policies, you don't want to invest in a company that might die before you do.

4Ask the company that provides your car and homeowner's insurance how to get the cheapest life insurance. Most insurance companies offer life insurance discounts for customers who already carry other policies with them. This gives you the double advantages of lower rates and already working with a company you trust.

5Consider policy riders for extra coverage. Instead of investing in a $500,000 policy, you could get a $250,000 policy with a double indemnity clause for accidental death. Since death by accident is the most common cause for adults of working age, this can save you money while sacrificing little security.