Life Insurance Rates
by Penny M. Hagerman
No one knows what the future holds. But when things get tough and loved ones pass, the right life insurance policy provides the means for those left behind to start life new.
When it's time to consider life insurance, depend on InsureMe to find cheap life insurance rates. We work hard to find our customers low rates through local agents, so worrying about the future just isn't a problem.
Put your family in good hands. Get the scoop on how insurers set rates; learn what to avoid when buying a life insurance plan, and gather tips for saving money on life insurance rates. Then request a free life quote—and protect your loved ones today.
Underwriting & Life Insurance Rates
Since the cost of life insurance depends largely on risk, insurers must first examine the information provided on the application, then determine what kind and how much risk is involved in each individual case before setting insurance rates.
This process sets life insurance rates based on both risk and life condition, including among other things:
- Age—younger applicants achieve lower rates.
- Education—more educated applicants get cheaper premiums.
- Marital status—rates for singles run less than for their married counterparts.
- Home ownership status—rates for homeowners run higher than for renters, as more money is at stake.
- Number of dependents—smaller families garner better rates.
- Health—good health earns applicants lower rates than poor health.
- Occupation—low-risk work translates into lower premiums.
With this information at hand, the life insurance underwriter has an accurate picture of what life insurance rates should be. He then groups each applicant with others posing a similar amount of risk, and tweaks rates based on life conditions.
Coverage, the Name of the Game
Since life insurance is about protecting loved ones, keep these facts in mind while shopping for affordable rates:
- Avoid skimping on coverage. A higher level of protection can often be purchased with only a slight increase in rates; so buy as much insurance as possible within the predetermined budget.
- When answering questions on life insurance applications, always answer truthfully. If the insurance company discovers otherwise, the application could be denied-or worse yet, payouts held up and dependents left in a lurch during a time of uncertainty.
- Getting the right coverage at the right price takes comparison shopping. Never buy from the first agent offering low rates; instead, gather several quotes and ask plenty of questions before choosing which insurer to go with.
- For policies already in place, make sure there's continual coverage until the new plan takes effect. If neglected, this little detail could leave family members without death benefits when they need them most.
Tips for Saving Money
To save money on life insurance, follow these simple tips for getting the most affordable coverage:
- Know what you need. Use online calculators to get a rough idea what it would take to cover expenses until retirement or empty nest.
- If young, opt for a term life policy. It's the best, cheapest and simplest option for young people.
- Get quotes. Sites like InsureMe offer plenty of information on life insurance rates to help make decisions simple.
- Get in shape. Stop smoking, lose weight and work at lowering cholesterol and/or blood pressure.
- Get informed on the topic of life insurance. You'll be more confident and equipped to choose the right life plan wisely.
Life Insurance, a Wise Move
When money is tight, it's tempting to forego life insurance coverage. But loved ones are counting on you, so don't let them down.
Get a grip on what you need to know, make a wise investment—and find affordable life insurance today.
