How do I get the best life insurance rate?
Because age and health are such important factors, you want to make sure to take advantage of applying for a policy when you are most likely to get the best rate. Best life insurance quotes.
Each insurance company offers different types of policies, benefits, and coverage, so you want to make sure you know what companies offer what you need. Getting multiple quotes allows you to see a variety of premium options so you can choose one that fits your budget.
Involve an Insurance Agent
They are able to assist you with your research and the quoting process. Because they are the insurance product and company experts, they likely know what company and/or policy fits your needs best with the best rate.
The charts below provide an average monthly cost for different life insurance policy options. Each is sorted by male and female and is based on a generally healthy non-smoker.
Where Should I Purchase a Policy?
There are more than 800 life insurance companies operating in the U.S. Once you are ready to buy a policy, how do you know which company to choose?
We researched dozens of life insurance companies and ranked them based on what we believe to be your best options. The companies listed as our Top 10 companies are ranked based on:
We looked at what types of policies were available (term, whole, universal, variable) and how many options there were. We also looked at other features, like Additional Riders, that gave more options to consumers.
Customer Service Ratings
We used J.D. Power Insurance Ratings to determine which companies were ranked highest in customer service. Ratings are based on the opinions of sample consumers who have used or owned a product or service being rated.
Quotes were gathered for a 35-year-old male and female non-smoker in good health for a $250,000, 20-year term policy. Male was 6'0", 200 lbs., and female was 5'7", 175 lbs. We also use J.D. Power ratings and reported the cost on each company's website.
Financial Strength and Insurance Ratings
For each company listed, we analyzed the financial strength reported by each company. We also looked at the scores reported on by A.M. Best, Moody's, Standard & Poor's, and Fitch.
Once you decide on a few companies that have the options you need, it's time to quote and purchase a policy.
How Do I Purchase a Policy?
There are three steps involved with purchasing insurance:
Calculate how much coverage you think you need by following the steps listed above and be prepared by knowing some general medical information such as height, weight, blood pressure, and cholesterol levels.
Most companies offer you the ability to either request a quote or get a quote online.
Compare life insurance policies online
Enter and submit basic contact information, which is provided to a life insurance agent. The agent will follow up with you via phone or email (depending on your preference).
They will ask questions like why you need life insurance, what kind of coverage you are looking for and for how long, and other informational policy questions. Once they get all of the information, they will get quotes for you from different companies that best fit your needs.
You will answer questions like your gender, date of birth, height and weight, coverage amount you are considering, and other basic, simple health questions.
You will have to do this for every company you are considering. Once you submit the information, you will either be emailed or immediately shown a quote.
Another option is to go solely through an insurance agent. You provide them with all of your contact and health information and they request the quotes for you. With this option, you don't have to do anything online or yourself.
You can also choose a captive agent. These work for one insurance company. While they are insurance experts, captive agents cannot give quotes from different companies to find the best premium options for you. Their company also might not offer the type of policy or specific coverage you need.
Once you decide which quote and company are right for you, you'll submit an application for the policy. You'll be asked to answer questions such as your age, marital status, occupation, and basic health history.
Purchasing a Policy
There are basically three ways you can purchase life insurance:
Directly from an Insurance Company
While this route typically ensures buying from a large, reputable insurer, it also may not get you the best price.
Through an Insurance Agent
Independent agents generally represent multiple companies, so they are able to compare more prices and often get you a better quote.
Through an Online Broker
Purchasing online may seem faster and easier, but keep in mind life insurance policies and costs can be confusing, so it may be more difficult to do it on your own.
Before buying, consider whether you are able to afford the monthly premium payments long term. Factor in what will happen if you lose your job or have to tap into your savings for an emergency.
Pay special attention to:
The type of policy you want.
Benefits or fine print for policy dollar allocation.
How Does the Application Process Work?
This process can take several weeks because it's quite lengthy - and personal.
First, you'll need to speak with an agent to verify the information you provided during the quoting process, answer additional questions about your needs, and confirm that the quote you selected is best for you. Usually, you'll be sent paperwork that you also have to fill out and sign to verify your intent.
The application process works differently for different companies, but they general all follow the same process.
Non-Medical Exam Policies
The process consists of answering some general questions online about you, your health, and your coverage wants and needs. Based on your answers, the company will decide whether to insure you or not. Underwriting often happens and coverage is obtained within 24-48 hours.
Medically Underwritten Policies
You'll have to fill out the application online to answer general questions about you, your health, and your coverage wants and needs. You'll also have to schedule and participate in a medical exam, and the results will be sent to the insurance company.
Once complete, the information will be sent to the insurer, who will analyze the results and decide whether to insure you or not, as well as what to charge as your monthly premium.
When your policy is approved, you'll be notified and receive a full copy. Typically, you'll also be asked to make the first premium payment.
After you make your first payment, you're good to go! Just make sure you continue to make payments on time every month to avoid a lapse in coverage.
Common Life Insurance Mistakes to Avoid
Immediately Opting for a No-Exam Policy
While no-exam policies have faster approval times and are generally easier to get, you could pay a much higher premium. Remember: the insurance company knows less about your health and therefore is taking on a higher risk by insuring you.
It may make sense to get a no-exam policy if you:
Are older or are in poorer health and won't qualify for a traditional policy
Term insurance and life insurance
Have been denied coverage in the past
Need quick coverage for a divorce or business loan.
There are two parts to this mistake. First, some people who quote online and are contacted by an agent feel pressured to purchase a policy even though it might not be the best option for them. This can especially happen if they don't do their research ahead of time.
Part two is only purchasing one policy when multiple may suit your needs better.
For example, perhaps you won't need $1 million in coverage for a full 20 or 30 years. Instead, you can purchase a 10-year policy for $500,000 and a 20-year policy for $500,000.
That way you have $1 million in total coverage, but you won't have that full coverage for all 20 years if you don't need it. This could save you dollars in your monthly premium.
Not Understanding Different Types of Agents
Each type of agent brings different expertise and sales persuasion to the table. Consider which would best serve your needs.
Thinking about what happens when you die isn't easy. But a life insurance policy is a critical piece of your financial planning. Your life insurance coverage will help your loved ones pay off debts and take care of other obligations after you're gone.
Working with a life insurance agent can help ease the quoting and purchasing process to ensure you get the coverage you need with a policy and coverage amount that works for you.
Once you understand what life insurance is, why you need it, and what your options are, you'll be able to make the most informed decision.
Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.