Making Term Life Insurance Cheaper

Following the rule of supply and demand, the more competition there is in the insurance industry, the easier it will be to find the cheapest term life insurance.  Term life insurance offers applicants a low cost life insurance option for a specified period of time.  In order to influence consumers to purchase their product over the competitions, insurance companies will often lower their rates in order to get more people to purchase policies.  There is frequently little difference between insurance company policies, so this is a purchase that should not be influenced by company ranking.

The Lowest Term Life Insurance Rates

Because term life insurance is a calculated risk for insurance companies that factors in the time limit of the policy and the possibility of an untimely death, the younger the applicant, the lower the rate.  Often no medical exam is required if there is no history of medical health issues unless the applicant is over 50 years old or chooses a large amount of coverage.  Whether you are a smoker or not does factor into term life insurance rates though. Because of this, quitting smoking not only improves health, but it can make finding the cheapest term life insurance easier.

How to Find the Cheapest Term Life Insurance

Because term life insurance is a product that is sold, asking questions about the best policy for you is important.  Look for group policies that provide a better deal through credit unions, employers or alumni associations.  Quote websites often give consumers the ability to get quotes from several different insurance companies at one time.  If there is a high-risk factor, look for an insurance company that caters to people in that category.  Also, don’t overlook small insurance companies just because they do not have the big name behind them.  A large insurance company is more likely to offer higher priced policies.

Reasons Term Life Insurance Rates are Dropping

The insurance industry is saturated with companies providing term life insurance policies.  In addition, people are living longer, healthier lives.  Because of these factors, finding the cheapest term life insurance is becoming easier.  In fact, term life insurance rates are at historic lows right now.  Insurance companies have also improved their underwriting practices from a basic three category ranking system of preferred, standard and smoker to a five or six category ranking system that rewards healthy consumers.

Remember that insurance is a product for sale.  Some agents sell the products that get the highest commissions, regardless of the needs of the consumer.  In addition, due to government regulations, insurance companies are required to conform to term life insurance standards.  As a result, it only makes sense to shop around or use a comparison site to find the best rates for the cheapest term life insurance.  If you already have a policy in place, review it every few years and compare it to current market rates.  Even after factoring in a higher age rate with current low rates, it can make sense to purchase a new policy and drop older coverage if the price is better.

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