Cheap Term Life Insurance Quotes

When you buy term life insurance, you want to get the cheapest price you can.

The best way to do this is to compare quotes from several companies.

Use our FREE comparison tool above to start your search for insurance.

Here are some important things to know.

Life Insurance Rates are Regulated

Each state has an office that regulates the rates for life insurance. For example, in Massachusetts, the Office of Consumer Affairs and Business Regulation includes the Division of Insurance, which licenses agents and regulates premiums.

This means that there are rates above and below which insurers may not price their policies. It does not mean that every company will charge you the same amount for your policy.

There are several reasons for this:

• Insurers have to charge a minimum rate, but that doesn’t mean they cannot charge more. Many companies charge more than the minimum because they have high marketing, advertising or commission costs.
• While each company has a minimum rate for a ‘preferred’ rating, for example, there is some discretion in what constitutes a ‘preferred’ rating. Some insurers may not give a preferred rating to anyone who has ever been diagnosed with hypertension. Others may give a preferred rating to someone who has hypertension that is well controlled with medication, provided that they have maintained a healthy weight and have no other risk factors.
• Riders can increase the cost of an insurance premium, and different companies may price riders differently.

The key to finding the cheapest term life insurance rate for you is to compare what different companies would charge you personally for insurance. This takes into account your age, your gender, your health, your family history and other risk factors.

Each insurance company will consider these factors a little differently, so their prices will vary. Comparing your specific policy from different companies will show you which one has the cheapest premium for you.

Complete a Single Application

In order to get the cheapest term life insurance quote, you’ll want to compare the rates of several companies. The best way to do this is by completing a single application or questionnaire that provides quotes from multiple companies. There are two reasons for this.

1. If you fill out one application that get submitted to multiple companies, you can be sure that each company has the same information about you. You don’t run the risk of leaving something out, which could result in a higher premium than what is quoted when it comes time to issue the policy.
2. Applications for life insurance are tracked and this information is shared with all insurance companies. This is in an effort to prevent people from applying to multiple companies at the same time, with the intention of taking out multiple policies for a higher total face value than they would otherwise qualify for. It also means that companies will know if you a ‘shopping around’ for price by applying to several companies, and some insurers will deny you for this.

Make Sure You Buy from a Reputable Company

Hopefully, the term life insurance you buy now won’t be used for many years – if at all. But if your life insurance does need to pay a death benefit to your beneficiaries, you want to be sure that the company you buy the policy will be around to pay it.

You can look into the strength ratings of insurance companies on A.M. Best . This will give you an idea of the financial strength of the company you are considering buying your policy from.

You can consult your state’s division of insurance for information on complaints about the company as well.

Ways to Reduce Your Premium

There are some ways that you can reduce the premium that any company will charge you for term life insurance.

Consider how long you will need the coverage for. The longer the term, the higher your premium will be. If you are purchasing a term life insurance policy to protect your income and your youngest child is three, a 15-year policy will cover you until that child is 18.

Buy the right amount of coverage. This means buying enough to protect your family if you should die prematurely, but it also means buying the most efficient size policy. Insurance companies have ‘break points’ after which the amount of premium per $1,000 of coverage decreases.

Your cost for a $490,000 policy could actually be more than your cost for a $500,000 policy if the company has a break point at $500,000.

Improve your health. Quitting smoking and losing weight are good ways to reduce your premium by reducing your risk.

Choose only those riders you need, if any. Adding riders, like coverage for a spouse or children, or the ability to buy additional insurance later on, will increase your premium. If you really need the rider, compare the price for that too. If you don’t need it, don’t pay for it.

Pay the premium annually if you can. Paying in installments will often cost more over the course if the year. If it’s feasible for you to pay the entire annual premium at once, it will end up costing you less.

The most important thing to remember when shopping for cheap term life insurance quotes is that you need to make sure that you purchase the policy that is right for you. Of course, you want to get the best price possible for that policy, and you will do that if you compare all of your options.

But don’t cut corners on the policy itself. If you buy a policy that has too short a term or too low a face value, your family may not have the full amount of protection you want them to have.

By comparing the same kind of policy, including the term, the face amount, the riders and the stability of the issuing company, you will be able to find the most cost-effective term life insurance coverage that is available to you.

Be sure to compare rates using our FREE search tool below.