17% of parents took out life insurance amid pandemic: Here's how to get the best rate

Raising children requires love and patience, as well as a significant financial commitment. Parents faced new challenges when the coronavirus pandemic hit in 2020, and many families took stock of their financial preparedness.

One in six parents (17%) purchased life insurance for themselves or their partner during the pandemic, according to a new survey from Policygenius, a life insurance marketplace.

Life insurance guarantees that your beneficiaries, including your children, will be provided for if you die unexpectedly. Many people don't have a life insurance policy because they're worried about the cost, but it may be much cheaper than you think. The average monthly premium for a healthy 35-year-old male is about $29, assuming a $500,000 payout on a 20-year policy. For women, that average is just over $24. 

If you're ready to begin coverage, you can shop for life insurance policies on Credible.

LIFE INSURANCE PROS AND CONS: WHAT YOU NEED TO KNOW

How the cost of life insurance is calculated

It's easy to see the value of life insurance if you have children who depend on your income, especially if it has a relatively low impact on your budget. The cost of your monthly insurance premium is based on a few factors, including:

• The policy holder's age
• The policy holder's health condition
• The coverage amount
• The length, or term, of the policy

An easy way to save on life insurance is to secure a term life insurance policy while you're young — think 30s or 40s — and in good health. For this type of life insurance, the price of the monthly premium is guaranteed to stay at the same rate throughout the term of the policy, usually between 10 and 50 years. 

You can see how the coverage amount and length of the policy affects the monthly premium by comparing life insurance rates on Credible.

WANT CHEAP LIFE INSURANCE? CONSIDER THESE STRATEGIES

Shop around to get the best rate on life insurance

You can save up to 40% on your life insurance premium by comparing quotes across multiple insurers. To get a quote, you'll just need to provide some basic personal information relating to:

• Your finances – The insurer will want to know your income as well as any debts you have in your name.
• Your medical records – These include current and past medical conditions and prescriptions, as well as your family health history. The insurance company may also contact your primary care physician.
• Your beneficiaries – You can make virtually anyone a beneficiary, or you can select multiple beneficiaries. Be sure to give them a copy of your policy, too.

The easiest way to compare life insurance quotes is to use an online marketplace like Credible, which offers free life insurance quotes through Policygenius. This allows you to compare quotes from the top life insurance providers at once.

HOW TO CHOOSE THE RIGHT LIFE INSURANCE AGENT FOR YOUR NEEDS

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.