Term Life Insurance -Basics Plus 10 Money Saving Tips

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Life insurance is an important aspect of your personal financial plan. Having a life insurance policy is necessary, but many people are confused about the types of life insurance policies.

One type of policy that is a great option for anyone seeking life insurance is term life insurance.

A term life insurance policy provides you with a high amount of coverage and at a reasonable price. They have a set length of time – usually between ten and thirty years.

The main reason term life insurance exists is to protect your family as you build up your nest egg for retirement. If you die during your income earning years, this coverage to helps your family bridge the gap until retirement.

If you should die while term life insurance is in place, your beneficiaries will receive a death benefit, or a payout. If you die after the term expires, there is no death benefit.

Term life policies usually have an age limit and maximum issue ages, usually 80.  However, there are some companies who will write term life insurance all the way to age 85, so if you are over age 80 contact us for a custom quote

Can I get term life insurance with a heart problem?

If you have heart disease or have had a heart problem in the past, you may think that there are no coverage options for you. However, there are companies that will provide term life insurance options for individuals with a history of heart disease.

Life insurance is too important to assume you will not qualify.

The cost of your life insurance varies depending upon the extent of your heart treatment. If you have had a heart problem with only one stent without a heart attack and are older than 50, you may qualify for a standard rate.

However, if you have had a heart attack, bypass surgery or multiple stents, you can expect a higher rate – up to 50% more than the standard term life insurance rate.  Every single case is unique, and it is different from individual to individual and company to company.

Thankfully, we have access to more than sixty life insurance companies that offer term life coverage for individuals who have had heart problems.

If you have any concerns about your heart, please contact us for a custom quote.

Who usually buys term life insurance?

Lots of individuals buy term life insurance.  In fact, for the first time in history more people own more term policies than permanent life insurance insurance.

“A factor that could be contributing to this trend is term life insurance offers more coverage for the dollar than a permanent life policy.

Due to increases in the cost-of-living and higher amounts of household debt, consumers may be more focused on getting the coverage amounts they need at the most affordable price,” James Scanlon, Director of Research at LIMRA

People choose term life insurance at many stages in their lives.  Whether you are young, old, single, divorced, widowed, wealthy or not wealthy yet, term life will be an essential part to your financial plan.

Because things change, you should review your life insurance options every year to make sure your decision is in line with your life goals and beneficiaries.

If your spouse passes away, you go through a divorce or your children leave home, you may need less term coverage.  If you have another child or need to take care of ailing parents, you may need more.

If you are looking for the textbook purchaser for term life insurance, they are usually

  • younger than 60 years of age
  • saving to retirement
  • with kids still living at home or other dependents

How much is term life insurance?

Term life insurance policy rates vary by the length of the term and the age of the insured.  The older you are, the higher your rates are. They also vary based on health and smoking status.

Your family history, occupational hazards, travels or dangerous hobbies will also impact your rates.  Your cost can also vary based upon your overall amount of insurance.

How much term life insurance will cost for you varies based on these factors and others.

First, read up on your heart condition if you have one.  This will affect your health class at the life insurance company.

Then, calculate how much you need here.

Finally, request your individual online quote to learn how much term life insurance costs for you.

10 Awesome Money Saving Tips for Term Life Insurance

OK, so maybe you need more term life insurance protection for your family.  Now what?

You have the opportunity to save a significant amount of money on term life insurance if you follow the following strategies. Here are some of the best ways to protect your family and save a little dough:

1) Extend your benefit or payout period

Some companies will allow you to choose a special election to pay your policy out over a series of years, rather than a lump sum death benefit. The income option is beneficial for individuals who are seeking income replacement for beneficiaries, who wish for their beneficiaries to be more responsible financially, if your beneficiary has special needs or if you want to provide a long-term benefit to a charitable organization.

You can save up to 30% just by prolonging the payout instead of taking it as a lump sum.

2) Reduce your current life insurance coverage.

Life changes. That is why you need to reassess your life insurance. You can save money by reducing your coverage – especially when your life situation does not require a high death benefit. Most life insurance companies will allow you to reduce your death benefit, and will reduce your term life insurance premiums consequently.

3) Bundle policies.

You can save up to 15% by bundling life insurance policies with other insurance options. Many companies offer a multi-policy discount when you bundle with life, auto, business or home. You will generally see better deals with business and life bundling.

4) Lose five pounds, save a ton!

You probably did not expect to get weight loss advice on a life insurance article, but this is one of the easiest ways to save money on your term life insurance policy.  Since life insurance rates vary based on points related your health and medical history, making small changes in your health can result in significant savings on your premiums.

Case Study
Jacob is 59 years old. He is in great health, stands 6 foot tall, and weighs 210 pounds.

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Using the build chart above from an A+ rated life insurance company, Jacob is just over their threshold for the best class of preferred plus.  However, if he loses 3 pounds, he would qualify for preferred plus.

What difference does that make on a $1,000,000 policy?

$1,000,000 20 Year Term Life Insurance for Jacob (age 59)

$1,000,000 Preferred Plus Preferred

Lifetime Policy

Savings

Monthly Rate $373.80 $428.70 $13,176

Just moving one health class saved Jacob over $13,000!  Now if I wrote you a $13,000 check for losing 3 pounds, do you think you could do it?

I know I would!

5) Buy more coverage, take advantage of banding

Buying more coverage may allow you to save money on your life insurance.

Say what?

See, life insurance companies have price breaks at certain levels.  This varies by carrier, however common bands are $250,000, $500,000, $1,000,000 and $5,000,000.  This means that you can get more death benefit for less money if you are close to these limits.

Think of them as “free price breaks,” and in many cases a $250,000 policy may have a lower premium than a $240,000 one.  Likewise, a $1 million policy can have a lower rate than a $900,000 one.

It seems counter-intuitive, but taking advantage of banding can save you thousands of dollars over the life of your policy and result in more protection for your family.  Win, win!

6) Take the medical exam if you have the option.

Choosing a term life insurance policy that requires a medical exam can save you up to 40% on premiums. Since life insurance is all about risk, underwriters want to know the details about your health. These details are rewarded with lower rates.

If you are in good health, always consider the benefit and cost savings of a term life insurance policy with medical exam.

7) Pay your policy once a year

This is one of simplest and most practical ways to save money on term life insurance. If you opt to pay your premium annually rather than quarterly or monthly, you can save up to 9% on your premium.

8) Buy life insurance while you’re young

When you purchase premiums at a younger age, you save money. In fact, your term life insurance premiums will increase by around 5% each year you wait to purchase in your 30s and 40s, up to 7% annually in your 50s, 10% in your 60s, and more than 11% every year in your 70s. It will almost never get cheaper to buy life insurance than your price is today.

Besides, your health tends to decline as you age so your costs can increase because of changes to your health status.

9) Avoid the TV sales

If you watch game shows in the evening, you see a lot of term life insurance options, especially for seniors. These commercials promise affordable insurance no matter your age, and promote no doctor’s exam or health questions.

These are guaranteed issue life insurance policies with high premiums and low death benefits to families. Most people in normal health will find better options.

If you are looking for life insurance for seniors , this is a comprehensive resource to check out. Don’t buy from the ‘Jeopardy guy’

10) Work with the experts Heart Life Insurance to save up to 73%.

A captive agent is someone who works for one large insurance company while an independent represents many insurance companies. Using an independent agent versus a captive one can save you up to 40% on term life insurance.  It’s simple, more choice means you pay less.

What if you could use an independent agent who is also an expert in underwriting heart conditions?  It’s a no-brainer!

We understand heart conditions.

We know the best life insurance companies for heart problems, and we can save you up to 73% on your life insurance.

Is term life insurance the right choice for your family?

Do you want to know more about your life insurance options? We have underwriting experts who can provide you with the best term life insurance rates on the market.

First, check out our extensive listing of heart conditions and how those heart problems affect life insurance rates.  Then, prepare your personal free quote.

Finally, put our team to work for you and get the best term life insurance rates in the business.

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