What is the absolute cheapest life insurance you can get?


What is the absolute cheapest life insurance you can get?

two basic insurance


This is a two-prong answer. There are two basic life insurance options that are preferred depending upon what age group you fall into:

Whole Life Insurance policies are a good match for seniors. Whole Life Insurance provides coverage for the life of the insured. In addition to providing a death benefit, whole life also contains a savings component where cash value may accumulate. These policies are also known as permanent or traditional life insurance.

The second category of life insurance is  Term Life Insurance which is most popular with those who are  50 years and younger. Term life insurance, also known as pure life insurance, guarantees payment of a certain death benefit if the covered person dies during a defined period of time. Once the term comes to its expiration date, the policyholder has three choices: either to renew it for another term,  convert the policy to permanent coverage or allow the policy to terminate.

It is rare for anyone over the age of 60 to take out a term life policy. It’s only about five percent of the time.  If they do, these exceptions are in pretty good shape healthwise. They can’t have more than three or fewer prescription medicines and no diagnoses of even a moderate, medical condition. You’ve got to be much healthier to get your term policies.

What is Accidental Death and Dismemberment Insurance?

manager papers flying

Now with that being said, we also have Accidental Only Life Insurance. According to Investopedia, Accidental Death and Dismemberment (AD&D) insurance is usually a rider to a health insurance or life insurance policy. The rider covers the unintentional death or dismemberment of the insured. Dismemberment includes the loss—or the loss of use—of body parts or functions (e.g., limbs, speech, eyesight, and hearing). Because of coverage limitations, prospective buyers should carefully read the terms of the policy. Because AD&D insurance is limited and generally covers unlikely events, it is supplemental life insurance and not an acceptable substitute for term life insurance.

A lot of people shake their heads and say, no way, Jose, I’m not going to do an Accidental Only policy. What you need to know is that this is the absolute cheapest life insurance you can get. So if you are on an extremely tight budget and you’re looking at spending less than $20 to $30 a month you can have a $50,000 to a $100,000 policy. This is actually the way that you accomplish that by getting an accidental only policy. Now you can qualify for this type of insurance until you reach the age of 70. However, once you are 71 years of age you can no longer get an accidental only policy.

The other thing that is important to know about this is that accidental only life insurance lasts only until you reach the age of eighty.

Who Doesn’t Cut Your Benefits at 70 Years Old?

Senior w beneficiary


Most carriers out there, are going to cut your accidental only life insurance benefits in half when you turn  70 or 75 years old.  Then it comes to an abrupt halt at 80 years of age. Then you’re done. However, our carriers at Protect With Insurance don’t automatically reduce your benefits when you reach the age of 70. Ours is a full accidental only coverage. Let’s say you get a $200,000 accidental only policy. It’s going to stay $200,000 accidental only until you turn 80 years old. Then the whole thing stops completely and there are no benefits if you outlive your term. You need to be aware of that when you sign up for Accidental Only insurance policy. So it’s treated as a term policy. The good news is there are no health questions asked and it’s affordable.

The only thing insurance companies care about when you apply for your accidental only policy is your age.  That’s it. So if you’re under the age of 71 you can easily get an accidental only policy that will be in effect until you become 80 years old.

What is a Return of Premium Insurance Rider?

However, if you’re under the age of  50 and you choose an accident only policy, you also have the option of getting an Accidental Only  Return of Premium Insurance Policy. A return-of-premium rider allows term life insurance policyholders to recover all or part of their premiums paid over the life of the policy if they do not die during the stated term, which is usually 75 years of age. This is a much better option as it is a win-win situation. Unfortunately as previously mentioned, t his type of Accidental Only with a Return of Premium policy is only available if you are younger than 50 years of age.

What Does Accidental Only Cover?

accident form


For the majority of people who are over 50 years of age, an Accidental Only Policy is the best way to go if you are budget-minded. Not only that, consider the fact that accidental deaths are the third most common reason for dying in the United States of America. Accidental Only Insurance policy is going to include everything from:

• Motor vehicle accidents

• Falls

• Poisoning

• Drowning

• Fire-related injuries and deaths

• Suffocation

• Firearms

• Industrial accidents

• Medical errors

• Prescription errors

• Transportation accidents

• Injury

•Falling objects

There are some exceptions to this and that is if you are participating in high-risk activities, most of those are not covered. A relatively common high-risk activity that we see is riding a motorcycle without a helmet. If you have a helmet on, you’re fine and will be covered. If you don’t wear a helmet, and that’s a very easy thing to prove, you won’t be covered.  So if you ride a motorcycle and you have one of these policies, you need to wear your helmet if you want to be covered. That’s a great incentive. Naturally, your loved ones will love that.

What is the Second Cheapest Policy?


So that being said, accident-only policies are the least expensive term policies. The next cheapest policy type is the  Term Life insurance policy. But it requires that you are extremely healthy in order to qualify. Although they are very economical,  at the end of your Term Only policy, you lose everything unless you sign up again at a higher rate. That is why they’re so inexpensive for the amount of coverage you get.

What Type of Life Insurance is Best if You’re Over 50?

life insurance for senior

Every year as you get older, term insurance premiums start going up.  It’s a crazy thing, but you need to be aware of that going into it. That’s why Term Policies are aimed at people who are under the age of about 45 or so. They get terms that they’re not too worried about at the time. They can easily get an inexpensive 20-year term and then opt-in for a smaller whole life insurance policy down the road.

What is a Whole Life Insurance Policy?

A Whole Life Insurance Policy is the best choice if you are over 50 years of age. Whole Life Insurance provides coverage for the life of the insured. In addition to providing a death benefit, whole life also contains a savings component where cash value may accumulate. These policies are also known as permanent or traditional life insurance.  Whole Life Insurance policies for seniors are also known as Burial Insurance Policies.  At the same time, a lot of these seniors are oftentimes on a budget with a fixed income. There are some ways to save money with a whole life insurance policy.

One way to save money on a whole life policy is to hone in on the amount of coverage that your beneficiaries realistically are going to need. Don’t go overboard if you want to save money. You don’t always need a $50,000 policy.

What is a Preferred Health Rating?

But a better way is to try to get yourself into a preferred health rating. The state of your health is very important in determining the type and the amount of coverage you can get. If you’re looking to get a Term policy, you will need a higher rating or a preferred health rating.  The measure for your health rating is based on the number of prescriptions you are on. Generally, you need to be on three prescription medicines or less to get a good health rating. Also, you need to have few or no medical diagnoses.

That is not always easy, but an expert insurance agency broker like Protect With Insurance can hunt dozens of companies to find you that preferred rating.  After we get you that great rating your premiums will go down and you can get that larger coverage you want for your beneficiaries. We can find some of the best prices in the country for you. It can make a big difference of up to 30% cheaper. Sometimes you can save even fifty percent of the usual premium costs. So it’s very, very significant because it locks in that price on a whole life insurance policy for the rest of your life. So if you’re saving, let’s say, $30  or even a$100s a month for the rest of your life, that is huge.

So that’s what we do. We’ll bend over backward for you. Please reach out to us again@helloatprotectwithinsurance.com or even better, give us a call at (928) 323-0933 or start a live chat. We’d love to help you.