What is the lowest cost life insurance policy?
Here we explore different options for the lowest cost life insurance policies. The least expensive type of life insurance policy judged by size of premium payments and cost of insurance is a term life insurance policy. This is because term life insurance has no cash value, and expires before the insured is hypothetically expected to pass away.
Why are life insurance premiums so low?
Therefore, the premium payment made to the insurance company only covers the cost of insurance for the life insurance policy. The premiums for term life insurance are the lowest amongst all types of insurance policies for this reason.
What is the best type of life insurance for You?
Stick to term life insurance unless you fully understand whole life and it is truly the best type of coverage for you. If you buy whole life, buy it from a well established mutual company with a long track record of strong dividend payments.