Is Cheap Life Insurance Risky?
Are cheap life insurance quotes worthwhile? According to the Insurance Information Institute, in 2008 a 40-year old male non-smoker could get $500,000 worth of coverage for as low as $30.00 a month by choosing a 20-year term life policy. Does that sound too good to be true? Are such cheap life insurance policies risky?
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Cheap life insurance has its advantages and disadvantages. For example, most cheap life insurance quotes are for term life policies, like the example above. Term life policies expire after a certain term. With these types of policies, the biggest risk is that when the policy expires, the customer will no longer be able to qualify for life insurance due to age or health issues. However, this risk can be reduced by selecting a policy with a guaranteed insurability option. This will increase the cost of the policy somewhat, but the insured is guaranteed to have the opportunity to renew without a medical exam.
Whole life insurance vs cheap term life insurance
Whole life insurance policies are more expensive than term life policies. Still, whole life insurance has a couple of distinct advantages. First, the policy will not expire unless the customer stops paying premiums. Second, the policy builds cash value over time, providing savings that the insured can tap into during retirement if necessary.
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However, financial advisers like Suze Orman tell clients that with the right investments, you can save more money by buying a term policy instead and investing the difference in premiums. For young families on a tight budget, expensive whole life policies have an even bigger risk: the family may not be able to afford to purchase enough coverage. Unless you can afford adequate coverage for your family using a whole life policy, it's actually far less risky to get a cheap life insurance quote for a term life policy.
Finding cheap life insurance quotes
If you are looking for cheap life insurance, contact us. Our professional agents can help you find cheap life insurance quotes that protect your family and your pocketbook!