Millennials: Make Life Insurance Affordable With These 3 Tips

Posted on: 27 June 2016

Are you a millennial who is beginning to build a family and just starting out in your career? Do you want to take out a life insurance policy to protect your family if anything were to happen to you but feel hesitant to commit to one more monthly bill? If so, here are 3 tips to keeping the cost of a life insurance policy down so you can have protection without feeling a financial strain.

1. Get A Term Policy

Whole life insurance policies are great financial tools; they accrue cash value over time, and you can borrow against that value if you need to. However, these policies are more expensive than term policies, and their benefits are only useful if you can afford them. Term life insurance policies are the no-bells-or-whistles approach to protecting your family. They're the cheapest type of life insurance and offer the sole comfort of knowing that your beneficiary will be compensated the amount of your coverage if you pass away.

Term life insurance policies are effective for a set period of years, and after they expire you can choose to take out a new policy or (if your family is no longer dependent on your income) forgo the option of life insurance at that time.

2. Buy Now

When you opt for a term life insurance policy, your premium is determined at the time of purchase. The older you are when you purchase your policy, the more of a risk your insurance provider is going to view you as and the more expensive your policy is going to be. At a policy price increase of 8-10 percent per year of age, you're looking at a substantial rise in costs for every single birthday you have. By securing a term life insurance policy right now, you'll lock yourself into the least expensive premium costs for that policy that you'll ever be able to secure.

3. Get A Medical Exam

There are plenty of life insurance policies on the market that will offer you coverage without the need of you getting a medical exam. While this saves some time and inconvenience, these policies are more expensive than those that require medical exams. Furthermore, your insurance provider will still be able to gauge your health because they'll look you up in medical, pharmaceutical, and motor vehicle databases before agreeing to sell you coverage.

Opt for an insurance policy that requires a medical exam. It will take roughly 30 minutes, won't cost you anything (the insurer pays for it), and will lower the cost you'll have to pay for your coverage.

As a millennial who is just starting a family and a career, it can be difficult to afford life insurance. Get a policy that you can afford with the above 3 tips, and contact Ascension Financial Group to learn more ways to save on long-term financial protection.