1. Understand your options. If you want to obtain the most coverage at a cost-effective price, Term Life insurance could be for you. Term Life insurance comes in different flavors—you may have heard the terms Guaranteed Issue, Simplified Issue, and Fully Underwritten. Generally, fully-underwritten Term Life insurance is the most affordable type of coverage.

2. Determine how much you need.

Since financial circumstances vary, there is no set rule of thumb for determining how much you should buy, but there are plenty of resources that can help you decide how much your beneficiaries will need for things like income replacement, mortgage costs, education expenses, and other debts. Our online calculator is a great place to start.

Like anything else in life, the greater the quantity you purchase, the lower the cost per unit. Generally, the rate per thousand of dollars of coverage will be higher on a $100,000 policy than on a $500,000 policy.

3. Choose the right duration. Choosing the right coverage duration can save you money over the long term. Consider when your children will be grown and no longer financially dependent. Although you can purchase more coverage when your policy expires, it may cost significantly more, and you run the risk that you may no longer qualify for coverage.

4. Buy coverage while you are young and healthy. The lowest Life insurance premiums usually go to the youngest and healthiest applicants. As you age, the rates you’ll qualify for will increase, as will the likelihood that you’ll develop a health condition that might preclude you from becoming insured at all.

5. Consider the company. Life insurance is a long-term purchase, so the company you choose is critical. You’ll want to purchase your policy from a carrier with a solid track record and history of financial strength.