With life insurance being such an important product to many families, understanding typical life insurance rates is becoming increasingly more crucial because of the current economy. Life insurance rates are impacted by many factors. Rates are created based on the type of life insurance product being quoted, the location of the applicant and the lifestyle and the health factors of the person applying. Rates also vary depending upon the classification that the consumer falls within. People can save money by shopping around, which can be made easier by using an insurance agent.
Rates Vary Between Whole and Term Life Insurance
There are many life insurance products available to consumers. Of the varying options, term life insurance and whole life insurance are basic examples and most typically purchased. The rates differ greatly between these two products. Whole life insurance is considerably more expensive than term life insurance. The contrast in the prices is because whole life insurance is for a persons’ entire life and it also accrues a cash value, while term life is for a designated amount of time and does not accrue a call value.
Factors that Impact Life Insurance Rates
In addition to the differences in the products there are other factors that impact typical life insurance rates. A consumers rates are affected by their age, location, height and weight. In addition, the rates vary based on whether the applicant is a tobacco user. Furthermore, rates differ because of life style, so any extreme sports or hobbies or any dangerous occupations can greatly impact the cost of life insurance as well.
Rates Determined by Classification
The bottom line for typical life insurance rates boils down to classification. Life insurance rates are generally determined by the statuses preferred plus, preferred and standard. Not many people qualify for preferred plus status, but for those who do; this is the most advantageous category to be in. Preferred status is probably the most common status, and a little more costly than preferred plus, but still less expensive than standard. Standard will have the most expensive premium.
Shopping around and using an Insurance Agent
Typical life insurance rates vary based on a few factors. Most insurance companies fluctuate on their rates and shopping around is a beneficial way to make sure the best rates are being investigated. Using an insurance agent can be helpful for consumers. Most insurance agents can prepare a quote for many different life insurance companies which can save individuals a great deal of time in searching for the best rates. Additionally, insurance agents are generally familiar with each insurance company and how they typically rate applicants.
Life insurance rates can be different for so many reasons. Each insurance company has their own typical life insurance rates. All quotes differ based upon the applicant as well; their age impacts the quote, their height and weight, whether they use tobacco and even where they live. Life style and family history can also impact the rates quoted for life insurance. It may be helpful to recruit the help of an experienced life insurance agent to assist with the decision.