Nothing in life is free, so the saying goes.
Despite this old adage, people are always searching for items that are free, and if not completely free, that cost as little as possible; even life insurance.
Life insurance is one of the most important “things” that you will ever purchase. It protects the well-being of your family, should you pass away. If you have a mortgage or other large debts, or loved ones who are dependent on you in any way, life insurance can ensure that they are financially taken care of in the event of your passing and the loss of your income.
Though life insurance is such an important purchase, most people don’t want to spend a ton of money on a policy, despite the fact that they want to have a decent amount of coverage. Well, the good news is that you don’t have to break the bank to get a life insurance policy that will provide financial reassurance for your loved ones in the event of your passing. Believe it or not, there are actually some free (that’s right, they cost you nothing, nada, zilch,) and others that cost as little as $20 a month.
To learn more about free and low-cost life insurance policies, please continue reading.
No-Cost Life Insurance
While a few no cost insurance policy offers tend to be short lived, one particular organization does provide free insurance coverage for individuals and their families for longer than a decade. The insurance policies do not require any kind of purchase; however qualifications do need to be met.
MassMutual’s LifeBridge plan provides a no cost $50,000, 10-year term life insurance policies to individuals and their families making between $10,000 and $40,000 a year. In order to qualify, potential candidate for this free life insurance policy do need to work at a minimum of part-time and have a child younger than 18. In addition to age restrictions for the candidate, there are health constraints: You will not be eligible if you have any potentially life-threatening conditions, such as HIV or cardiovascular disease.
In addition to meeting the qualifications, there is a catch to this free life: Should you pass on during the coverage term, your beneficiary will not get the normal lump-sum settlement. Rather, MassMutual will hold the money in a trust and reimburse the funds straight to the beneficiary’s preschool, private school, trade school, university or college. The beneficiary may use the funds until age 35, or for a period of 10 years after your passing. The funds from this insurance coverage may cover costs that include books, tuition, dormitory fees as well as student loans.
Low Cost Life Insurance
Though you may not qualify for MassMutual’s LifeBridge plan, or you may want more coverage than the $50,000 that this no cost policy offers, there are ways that you can get life insurance that offers great coverage without having to spend a tremendous amount of money.
Here are some tips that will help you get the lowest rates possible on your life insurance policy, while still providing excellent coverage for your loved ones.
- Maintain a Healthy Weight. Your weight plays a major part in your overall health. The heavier you are, the greater the likelihood that you will be prone to certain health conditions that could be seriously detrimental to your health, like cardiovascular disease and diabetes. For that reason, one of the primary factors life insurance companies consider when calculating your rate is your weight. The amount you weigh can directly impact your life expectancy. That said, maintaining a healthy weight, eating a healthy diet and getting regular exercise can lead to substantial savings on your premiums.
- Don’t Use Tobacco Products. Another major factor that influences the premiums on your life insurance is tobacco use. It’s no secret that tobacco use has grave effects on your health, including increasing your chances of developing life-threatening conditions like lung cancer, mouth cancer, and cardiovascular disease. Avoid using all types of tobacco products, like cigarettes, cigars and chewing tobacco, and not only will you enjoy a better quality of life, but you will also save big on your life insurance coverage.
- Control Chronic Medical Conditions. Though certain chronic medical conditions, like high blood pressure, can lead to higher premiums on your life insurance, keeping chronic medical conditions under control can help you score lower premiums on your life insurance coverage.
- Do Some Shopping. Before you buy, you should always shop around. Premiums for the same type of coverage can significantly vary from one life insurance provider to another. And, shopping around is easy! All you have to do is turn on your computer and do some searching. The Internet has become a huge resource for people who are shopping for life insurance. It’s fast and it’s convenient. Do some research and you will find that there are several quality insurance providers that offer exceptional coverage, and they offer free life insurance quotes. Not only can you find different rates from different providers, but you can use the information that you find as leverage to lower the rates with a provider that you are really interested in choosing.
- Buy Early. While you may not think that life insurance is a necessity when you are in your mid-20s, buying a policy at that age can actually translate into great savings for you. Generally speaking, the younger you are, the healthier you are. As a young applicant, you will attract lower premiums and attain better deals on your life insurance coverage. Buy life insurance when you are young and you may be able to lock in a lower rate.
- Keep Your Driving Record Clean. What does your driving record have to do with your life insurance? Believe it or not, a lot. The better your driving record, the lower your life insurance rates will be. Why? – Because a clean record translates to a more cautious individual. If you have a clean record that is free from traffic violations, insurance carriers consider you to be less of an asset because there is less chance that you will be involved in an accident.
- Opt for Term Rather Than Whole Life. In general, term life insurance policies are more affordable than whole life policies. Term policies are issued for a pre-set amount of time, while whole life insurance policies never expire. For this reason, term policies have lower premiums, and the lower the premium, the less you will spend out of pocket. And, a term policy can be just as beneficial as a whole life policy.
- Prepare for your Medical Exam. Many life insurance providers require a medical exam before determining the rate they are going to charge. Depending on the tests that will be conducted during the medical exam, you will have to prepare in advance. Some exams require you to fast for a certain amount of time and avoid high fat foods. Make sure you are adequately prepared for your exam so that you can get the best results possible on your medical exam, and the lowest rates possible on your life insurance policy.
Who says you have to pay a fortune for life insurance? You may be able to get completely free coverage, or coverage at a seriously low rate.