Q&A: What type of life insurance is the most affordable?

What type of life insurance is the most affordable? I can’t afford an expensive policy but want coverage for my family.

Saving money is always an important consideration, and it is certainly an important consideration when it comes to life insurance. It is important to shop around as much as possible in order to get the best possible life insurance coverage at the lowest possible rates.

All else being equal, term life insurance coverage should provide the highest level of coverage at the lowest possible premiums. That is because term life provides a death benefit – and only a death benefit. There is no cash value, no investment component and no other complications.

Those who are looking for only protection for their families should definitely consider a term life policy. The premiums for this type of coverage can be extremely low, especially for the young and the healthy.

Term life insurance derives its name from the fact that the insurance is in effect for a specified term, and the length of that term can vary from policy to policy.

The typical terms for a term life insurance policy are denoted in five year increments, with 5, 10, 15, 20, 25 and 30 year terms being the most common. Upon expiration of the term the policyholder has the option to renew the policy for another term, typically with a different premium.

Staying healthy is a great way to keep premiums low, since it typically costs less to insure those who are in good health. Smokers can save on their premiums by quitting the habit, providing another great incentive for kicking this dangerous vice.