Jessica Fox Last Updated On: August 24, 2023

Your Guide to Affordable Life Insurance in The Great Land

Alaska might be the least densely populated state in the U.S., but that doesn’t mean life insurance is an afterthought for Alaskans. There are plenty of people in The Last Frontier that want and need life insurance, so we’ve rounded up everything you need to know about finding great life insurance in Alaska. 

Keep reading for information on cost, savings, coverage types, and more.

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Table of Contents

Alaska Life Insurance Options

The reasons for getting life insurance can vary significantly, which is why you have different life insurance options available to you. So whether you want to leave your children a nest egg or simply take care of your funeral costs, there’s a life insurance policy for you. 

Here are some of the life insurance options available to you:

  • Term Life Insurance: This is life insurance that lasts a set term, which ranges anywhere from 10-30 years. Once that term ends, so does your policy. If you pass away during the term, your loved ones will receive a payout. But if you outlive the policy, there’s no death benefit and your premiums are forfeit. 
    • Some providers give you the option to renew your term or convert your term life insurance to whole life insurance (more on that here). But for the most part, people who want term life insurance are looking to protect their loved ones for a set term, such as when their children are young or while they’re paying off their mortgage. 
  • Permanent Life Insurance: This is a type of life insurance that lasts your entire life. No matter how long you live, your loved ones will receive a death benefit. Permanent life insurance also typically comes with a cash value component that invests part of every premium into a savings vehicle that you can actually borrow against during your lifetime.
  • Guaranteed Life Insurance: This is life insurance that requires no medical exam or health questionnaire. You’re guaranteed coverage regardless of your health, age, risky job, etc., but you’re going to pay more in premiums as a result. 
  • Final Expense Life Insurance: There are different versions of this, but essentially it’s a low-cost policy that covers your final expenses, such as medical bills, funeral and burial/cremation, outstanding debt, etc. The payout is generally small ($5,000-$25,000), but the premiums are also low. 

Not everyone wants life insurance for the same reason, so the different policy type options mean you can find the right coverage for your needs.

Alaska Life Insurance Riders

Life is unpredictable, and even standard life insurance doesn’t always fully protect you. That’s why insurance providers often offer life insurance riders, which are add-on coverage options that help customize your policy even more.

Some common riders include: 

  • Accelerated Death Benefit: If you receive a terminally ill diagnosis, this rider lets you take an advance on your life insurance policy to help pay for medical expenses or other costs (you don’t need to show what it’s for). Each policy will lay out conditions, such as being given less than a year to live or being able to take out just 80% of the policy. Keep in mind that your beneficiary will only get what’s left after your advance. 
  • Waiver of Premium: If you become disabled, this allows you to stop paying your life insurance premiums and still retain the policy. 
  • Child Life Insurance: Instead of taking out a separate policy for their child, some parents just add it as a rider to their own policy as it can be more cost effective.
  • Return of Premium: If you outlive your policy’s term, you’re refunded all the premiums you paid. 

You can add riders to your policy as you see fit, but keep in mind they’ll increase your premiums. Buying any riders you think you might want when you set up the initial policy is best, as adding a rider later could require you to go through the underwriting process again.

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The Average Cost of Life Insurance in Alaska

It’s nice to know your coverage options, but cost is often the main determinant in life insurance. The good news is that life insurance is more affordable than you might think. In fact, 80% of people overestimate the cost of life insurance. 

So, how much is it? While actual rates depend on a number of factors, the average annual cost of term life insurance in Alaska is $655. 

Here’s some more data:

  • A 30-year-old could expect to pay $33.65 per month for a 30-year term with $250,000 in coverage.
  • A 50-year-old could expect to pay $125.12 per month for a 30-year-term with $250,000 in coverage.
  • A female could expect to pay $16.60 per month for term life insurance on average, while a male could expect to pay $18.93 for the same.

The younger you are, the more you’ll save on life insurance. But choosing to get life insurance later in life doesn’t mean you’re stuck paying an arm and a leg to protect your loved ones. Keep reading to find out ways to save on life insurance rates.

How to Secure Cheap Life Insurance in Alaska

Life insurance is important, but so is saving money. Luckily, both are more than possible when it comes to finding life insurance in the Land of the Midnight Sun.

Here are our top tips for saving on life insurance:

  • Compare Rates: Never take the first quote you get. Instead, shop around and compare rates. You’re guaranteed to save money by doing this. 
  • Buy Young: Life insurance is never as affordable as when you’re young and healthy. If you’re on the fence about life insurance, it’s better to buy now than to wait. 
  • Consider Your Coverage: Don’t take out a whole life insurance policy just because you think you should. Consider what you actually want your life insurance policy to do, and shop around accordingly.
  • Pay Annually: You could earn a discount by choosing to pay for the year upfront rather than pay monthly. While you’re at it, switching to paperless billing could net you another tidy discount. 
  • Reconsider Hobbies/Job: High-risk jobs like a firefighter or dangerous hobbies like skydiving and snorkeling can spike your life insurance rates—or prevent you from getting a policy altogether. Consider if this lifestyle brings you enough joy and satisfaction to be worth higher premiums. 

Saving money on life insurance is a win-win: you get peace of mind knowing your loved ones are protected, while putting a little extra money back in your pocket to live life to the fullest. 

Life insurance can be a key part of retirement planning and making sure you and your loved ones are set up for your golden years. Looking for more retirement financial planning tips? Get your free guide here, so that you can make the most out of your hard-earned retirement.

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Is Life Insurance in Alaska Required?

Even though you’re a little more vulnerable to Mother Nature in Alaska, you’re still not required to get life insurance. It’s completely up to you if you’d like to get life insurance, and the reasons can vary from helping your family replace your income if you pass suddenly to ensuring your final expenses are paid for. 

Getting life insurance while you’re young and healthy is when you’ll save the most money, so if you think you might want life insurance down the line, it’s better to lock it in sooner rather than later. No kids? No sweat. Here’s why you should get life insurance, even if you’re child free.

How to Find Life Insurance Quotes in Alaska

Ready to take our advice and start shopping around for life insurance quotes? It’s easy. Now that you know the type of coverage you need, you can start browsing online for quotes or contact your insurance agent. 

Keep in mind that you’ll want to provide as much information as you can when requesting your quote to ensure you get accurate quotes that help you plan accordingly. 

When it comes time for your policy to be written, be honest and transparent; Alaska has a two-year contestability period in which the insurance provider can challenge the insurance claim for inconsistencies or misinformation on your application. By not being truthful on your application, you could risk leaving your loved ones empty-handed in the event of your passing. Find more information on the contestability period here.

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Alaska Life Insurance: Protection for You and Your Loved Ones in the 49th State

Life insurance can mean different things to everyone, whether that’s ensuring your family doesn’t struggle financially without you or simply tying up loose ends after your passing. But what’s universally true is that life insurance can provide peace of mind and it doesn’t have to cost you a fortune. 

If you’re ready to start exploring life insurance, you’ve already made a sound financial decision for you and your loved ones. Start by getting access to free quotes fast by clicking here, and you’ll be well on your way to the right life insurance policy for you.


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