How to Get the Best Life Insurance Quotes


Sep 07, 2018

One of the more common reasons for buying life insurance is to provide loved ones with financial support after you pass away. The unfortunate reality is that death may come at any moment, and many people are not financially prepared to support their dependents at this moment.

The benefits from life insurance may be used to supplement your survivors’ income, to pay off debts and for other helpful purposes. Life insurance may also be used to leave an inheritance to loved ones, to accrue cash value as an asset and for many other purposes.

As beneficial as life insurance can be, the premium can be expensive and even unaffordable in some cases. Fortunately, you may be able to set up a lower premium on the life insurance coverage that is truly needed when you follow a few helpful steps. Spend ample time focusing on each of these steps in order to fully maximize the benefits that they can provide to you.

Top Seven Steps to Get the Best Rate on Life Insurance

  1. Buy Coverage Earlier in Life
  2. Improve Your Health
  3. Focus on Your Lifestyle
  4. Understand the Difference Between Term and Whole Life
  5. Choose the Right Term for Your Needs
  6. Purchase Only What You Need
  7. Shop Around

The Seven Steps Explained

Many factors are analyzed by life insurance companies when they determine your premium, and these combined factors tell the insurance companies how likely you are to die. Essentially, they use these factors to determine your risk. Understandably, one of the leading factors is your age. Therefore, if you want to get the best rate on life insurance, it is usually beneficial to set up coverage sooner rather than later.

When you request coverage, the insurance company will usually send a health professional to your home or workplace to collect blood and urine samples from you. Your weight, pulse and blood pressure will also be reviewed. Many life insurance companies require you to complete a lengthy written or phone survey related to your health history and to your immediate family’s health history. While you cannot change some of these details, you do have control over your weight, blood pressure and other current health facts. In some cases, it may be better to improve your health over the course of a few months before requesting quotes. However, keep in mind that age is also a factor. You must find a balance between health and age in order to get the best rate possible.

The survey that you complete will also ask you about lifestyle factors that could impact longevity. For example, smoking, drinking and recreational drug use will come into question. Any risk activities that you participate in, such as skydiving, will also be reviewed. Some insurance companies even ask if you have traveled to certain countries recently. Each insurance company analyzes these factors differently. However, you may qualify for better rates if you cease risky lifestyle activities at least six months before you apply for new coverage.

The type of coverage that you purchase will affect your premium. The two primary insurance types are term life and whole life. Term is usually more affordably, and term length options usually range from 10 to 30 years. Shorter terms generally yield lower rates. Remember that your coverage will cease at the end of the term. Whole life does not have an expiration date. It will extend throughout your lifetime provided the premium continues to be paid. In addition, it can accrue cash value in an interest-bearing account. The premium for whole life is usually considerably higher. Some people will purchase coverage for a limited number of years based on when they anticipate their need for coverage will be gone. Others view coverage as an asset that has various purposes over the years, and they prefer whole life.

You typically establish the face value or financial benefit of your policy, but there may be limitations to this. Some people choose a $10,000 or $20,000 policy to pay for funeral expenses. Others may choose $500,000 or more in benefits with the intention that survivors will be able to live off of the benefits for many years. It may be beneficial to use a life insurance estimator or calculator online and to develop a plan for the use of funds before you decide how much insurance to purchase.

You can see that there are numerous factors within your control that directly affect the cost of your life insurance premium. One additional step that you should take before buying coverage is to request several quotes. Keep in mind that insurance companies may each review some of your risk factors differently. As you speak with several insurance agents, be open about your risk factors so that you can make a more informed decision about which company to purchase coverage from.

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