How to get cheap life insurance in 2024

The page has turned on a new year, and like many Americans, you might be using this time to re-evaluate your finances. Your evaluation could include your earnings from savings deposit accounts or investment accounts. It's also the perfect time to consider boosting your life insurance protections for better coverage.

For example, is your life insurance coverage sufficient to cover your loved ones' financial obligations when you die? Would you like to grow cash value in a whole life insurance policy?

While many Americans have life insurance policies, 21% believe they don't have enough coverage, according to a LIMRA study. Similarly, 38% of Americans state their household would face financial hardship within six months if an income earner were to suddenly pass and 30% say they would struggle to make ends meet within a month.

LIMRA data reveals that 42% of consumers don't buy life insurance because it's too expensive, but more than half of Americans overestimate the cost of life insurance three-fold. The reality is that term life insurance is more affordable than many realize. Just as importantly, there are ways you can secure cheap life insurance in 2024, including by using the below tactics.

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How to get cheap life insurance in 2024

Here are five effective ways to secure inexpensive life insurance this year.

Apply now if you're young and healthy

Life insurance is cheaper when you are younger and in good health because there's less risk to the lender that you'll pass away or experience a serious illness. This holds true for both term life insurance policies, which last for a specific term, and permanent insurance, which lasts for as long as you have the policy.

Along these lines, Stuart Boxenbaum, president and founder of Statewide Financial Group, says the best way to save money on life insurance is to look into it at the youngest age possible. "If you are in good health, then permanent (cash value) life insurance usually makes the most sense because your premium is locked in at the age you started," says Boxenbaum. "Eventually, you can use this life policy as a pension with tax-free income and still maintain the life policy death benefit."

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Pay premiums annually vs. monthly

Life insurance rates and payment plans vary from policy to policy, but most carriers allow you to pay monthly, semi-annually, quarterly or annually. Fortunately, many life insurance companies offer substantial discounts ranging from 2% to 8% of your yearly premium if you make annual payments.

"If you can pay life insurance premiums annually instead of monthly, that will usually save money because the premium for the year is put to use from the beginning instead of month-by-month," says Boxenbaum.

Choose term life insurance

To save money on life insurance in 2024, consider a term life policy if your primary objective is to ensure your dependents are covered financially if you die. Term life insurance provides basic coverage for a specific term, typically 20 or 30 years. Life insurance experts often get a term length that spans your highest earning years and when your expenses are highest, typically when you're raising children and paying off your mortgage.

Permanent life insurance is attractive because it covers your whole life and includes a savings component known as cash value. The account grows tax-free over time as you make payments. However, these benefits come at a cost, as premiums can be up to 15 times higher than a term life policy. If you want to save the most, term life insurance may be your best bet.

Buy only what you need

It's a good idea to start the year by reviewing your insurance needs versus your current coverage. A common rule of thumb is to purchase a death benefit that equals 10 to 30 times your annual salary, depending on your age. That may not make sense if your children are now adults and your home is paid off. Conversely, final expense insurance might be sufficient if you're single with no dependents, but if you're married and carry a mortgage, it makes sense to boost your coverage.

Remember, your insurance needs will change over time. Keep costs down by purchasing only as much coverage as you genuinely need. You can always adjust and add more coverage later if needed.

Shop and compare rates from different providers

One of the easiest ways to get cheap life insurance is to shop multiple insurance companies for quotes. This practice can present you with several policies to consider, each with its own coverage options, fees and premiums. Naturally, you'll want to identify the life insurance providers with the lowest rates, but that shouldn't be your only consideration.

Jiten Puri, CEO at PolicyAdvisor.com, notes: "People should also look at the different options an insurance provider offers - features like riders, whether the policy can be converted or renewed, whether they offer discounts for bundling different types of insurance products together. They should be sure to read the fine print of the policy to make sure their premiums will remain the same and won't change every year, and other minute details like this."

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The bottom line

Consider consulting with an independent insurance broker or a financial advisor who can provide specific strategies to save on life insurance. A life insurance expert could help you craft a policy that reduces your costs while addressing your specific needs and situation in 2024. Remember to regularly review your life insurance policy as your circumstances may change. What was a good deal in 2024 might not be in a few years. And periodically examine your insurance coverage to ensure it remains cost-effective while meeting your beneficiaries' financial needs.