Life Insurance Rates
Life insurance rates are based on the risk factors of the insured person and the type of life insurance which is purchased. Life insurance companies use actuarial tables to determine the probability of a particular insured’s life expectancy. Risk factors that are considered when determining life insurance rates include age, gender, occupation, family medical history, lifestyle, tobacco and alcohol use, and the general health of the policyholder. The amount of the death benefit and the choice of life insurance policy also affect rates.
Generally speaking, term life insurance rates are the cheapest, but whole life insurance has additional benefits and features that many consumers may find useful for their family’s financial needs. By comparing life insurance quotes, consumers can find the best life insurance rates, policies, and companies available in the U.S., helping you purchase affordable coverage.
Whole Life Insurance Rates
The younger and healthier an applicant is when purchasing life insurance, the lower their rate will be. Smokers, alcoholics and those who are overweight/obese or live sedentary lives pay more than non-smokers who exercise regularly and eat right. Individuals with a family medical history of heart disease, cancer, diabetes or other medical conditions which could shorten their life span also have difficulty finding cheap life insurance rates. The longer an insured person can be expected to pay premiums, the lower the rates for permanent life insurance will be.
The most popular type of permanent life insurance is whole life insurance, which is a policy that uses your premiums to build cash value. A cash value with whole life insurance is like a forced savings account, and even after the policy is paid up, the cash value remains yours and can be paid out to you anytime. Whole life insurance may be used to accrue a nest egg for retirement, an interest-free loan, or a down payment for a home. Whole life insurance rates are not as cheap as term life insurance, but offer additional benefits and features that may better address the needs of certain applicants and families.
Term Life Insurance Rates
Although life expectancy is still a major factor in determining term life insurance rates, term life policies are the cheapest type of life insurance, especially for young, healthy individuals since it may be expected that these individuals will not die during the policy term. Since term life insurance only pays a death benefit if the insured dies within the policy term, the life insurance company can anticipate that younger people will live beyond the expiration of the policy and no benefits will be paid, allowing term life carriers to offer low cost term life insurance. Permanent life insurance guarantees the payment of benefits no matter how long the policyholder lives because the policy becomes permanent after it is paid up.
Death Benefits – How Much Life Insurance Do I Need?
For wage earners, most life insurance agents recommend a death benefit equal to between 5 and 10 times their annual salary. Since life insurance rates increase with the amount of the policy’s death benefit, it is important to consider how much money will be necessary to support financial dependents if the wage earner dies. If your budget is limited, consider buying only the amount of life insurance that is needed; otherwise, add in your mortgage, medical bills, business or personal loans, children’s education and college tuition, credit cards and living expenses, and you’ll probably be closer to the higher end of that range. When choosing a death benefit amount, outstanding debts, funeral expenses and financial support for dependents should be added together to determine the limit.
Life Insurance Quotes
LifeInsuranceRates123.com provides consumers with free life insurance quotes from the best life insurance companies in the U.S. Once a consumer has an idea of the type of life insurance policy and amount of coverage that may best meets their needs, applicants can complete a short form and compare life insurance rates. Instant online life insurance quotes are free and there is no limit on the number of life quotes a consumer may request to find the right life insurance protection at an affordable price.
Life insurance rates are based on the life expectancy of the insured, the amount of the death benefit and the likelihood that the benefit will be paid. Term life insurance rates are cheap because the policy does not pay a death benefit unless the insured dies within a specific period, but whole life insurance rates may be higher since payment guaranteed.
Learn more with the life insurance information we provide, and then consider comparing quotes online to find the best rates, policies, and insurance companies. Buying life insurance as early as possible, choosing the right death benefit and comparing rate quotes can save consumers money on necessary life insurance coverage. Enter your zip code now to begin a life insurance quote.
