Life Insurance Rates

About Life Insurance Rates

Almost everyone would love to have life insurance. Unfortunately, many people do not buy policies because they cannot or think they cannot afford to pay life insurance rates. While it is true that people who are on a fixed income may have difficulty paying premiums for certain policies, life insurance is generally more affordable than most people think it is.

The life insurance premiums that you pay are determined by a variety of factors, such as:

• Your age
• Your current physical health
• Pre-existing conditions
• Your lifestyle
• Your job
• The amount of coverage that you have

Other factors include where the insurance was purchased and whether or not you have extra riders on the policy. Those who are young and healthy will pay the lowest rates. Non-smokers will also receive significant discounts in most cases.

Life Insurance Policies

In addition to the factors mentioned above, the type of policy you purchase will greatly affect your life insurance rates. When shopping life insurance coverage, you have two basic options: whole life insurance or term life insurance.

While each type of coverage has its pros and cons, neither is right for everyone. Before deciding between whole life insurance and term life insurance, you should learn as much as possible about each option.

Whole Life Insurance

Whole life insurance provides coverage for your entire life. With a whole life policy, you can never be cancelled as long as you pay your premiums in a timely manner. One of the biggest advantages to a whole life policy is the fact that you can increase your payout by making investments in stocks, bonds, and mutual funds.

Term Life Insurance

Term life insurance is different than whole life insurance because it provides coverage for a very specific amount of time. Terms usually range from one to 25 years in length. However, some policies may provide you with coverage until you reach the age of 65. Once the term has expired, you generally have the options to renew the policy.

In addition to the length of coverage, a term policy differs from whole life insurance because there are no investments that can be made. If you purchase $250,000 in coverage, then that is the exact amount that will be paid out in the event of your death.

Comparing Life Insurance Rates

Life insurance rates can vary significantly. This is why it is a good idea to shop around and compare policies and rates before making a purchase. Get several different quotes, and do an apple to apple comparison to determine which policies are the best deal. For example, compare term life insurance policies with other term life insurance policies and whole life insurance policies with other whole life insurance policies.

Money Saving Tips

• Find out the rate of coverage for every $1,000. After a certain level, the rate often drops, which means that a life insurance policy that provides $250,000 in coverage may actually cost less than a policy that offers $240,000 in coverage.
• Choose a reputable life insurance company.
• Shop around to determine which company offers the best rates.
• Quit smoking. If you are a smoker, you will typically pay twice as much for life insurance as a non-smoker.
• If you add riders to you insurance policy, make sure your coverage isn't being duplicated. You don't want to waste money purchasing coverage that you already have.
• Ask if there are any hidden fees associated with the policy. Some companies charge you extra for paying on a monthly basis vs. a yearly basis.