Q: How do I lower the cost of life insurance?

A: The best way to lower the cost of life insurance is to take term life insurance over whole life insurance. You get less coverage, sure, but you also pay much lower premiums, and this is recommended by many insurance departments and financial planners. One way to really exploit your term life insurance is to take the money which is left over and start investing it in things such as a mutual fund, so that your assets will grow and you get more money for less.

You may think at first that the cost of life insurance for a term policy is only slightly lower than that of a whole life policy, but this is not actually true. As a matter of fact, a whole life policy will cost you as much as nine times more each and every year than your term life insurance policy will.

Another way you can save is to buy cash value insurance. With this, you have no choice but to save money. One thing you should keep in mind, though, if you have cash value insurance is that if you take out any wihdrawals or loans from it, you will get less upon death.