All Life Insurance Tips

Where can I find the best deal on term life insurance from a reputable company?

Probably need around $200,000 in coverage for a 36-year-old male.

Public Comments

1. Companies are pretty competitive. Rates vary by company and state. Call some local agents. Stick to the big well known companies, like Allstate, State Farm, Farmers, ect.
2. Look at the coverage details. Cheap deals: Mostly stepped premiums (increase in price yearly), Only cover accidental death (PA) and may not cover suicide death, No rebate or cash value after a long term.
3. Term life insurance premiums are extremely competitive. There isn't enough of a difference to make it a purchasing decision. The "best deal" in life insurance is the result of applying the proper amount, type, and term (if applicable) to meet the need. For this, you need to employ a properly qualified financial planner or advisor. In other words, it is the individual advising you, not the price, that makes it the best deal. BTW, most companies "band" their premiums (apply a discount) at the $250,000 level, so that amount is likely to be comparable to and possibly a lower premium than for $200,000. A qualified planner would know this and make you aware of it. Just one example of why to consult with one.
4. Simple Go to an insurance broker and let then do the shopping for you. One thing to keep in mind is that the lower the premium is the higher the underwriting. This might not be a issue for you but if you have some medical issues you might not want the cheapest since that will have the hardest underwriting.
5. There can actually be quite a difference in rates between life insurance companies on term insurance. This is primarily due to choice - some life insurance companies choose to offer lower priced term insurance and others do not. Life insurance companies typically re-price their products to manage their application flow. Some carriers are setup to process a great number of applications and can price accordingly. Others simply do not have the resources available if they were to receive a lot of applications and choose instead to focus on higher face amount and different types of policies. So it pays to look around. For those that offer competitively priced term insurance, you should also pay attention to ratings which is an indicator of financial strength and stability. There are several rating companies that analyze life insurance carriers. Some carriers may only be rated by one of the companies. Others might be rated by several. If it were me, I'd look at a carrier rated by at least two or three services as they each look at slightly different things. And keep in mind that while one company's A might be there 3rd highest rating, another company's 3rd highest rating might be an AA. Most comparisons of ratings indicate the relative strength of the rating within that carrier's system. Also keep in mind that very few companies get the absolute best ratings from each of the services. But there are lots of good, reputable, financially strong companies that get ratings in the neighborhood of the 3rd, 4th, and 5th highest of the carriers. Presuming you're in absolute excellent health, then there isn't anything to worry about regarding underwriting. But if you've had any issues, have a few extra pounds, slightly elevated blood pressure, etc. then understand not all companies look at each of these issues the same. One company might give you a Preferred rating while another gives you a Standard rating looking at the exact same issues. And as another posted suggested, insurance company's "band" their pricing. $250,000 is often one of those bands so it could be less expensive to get a $250,000 policy than one with a slight lower face amount. You should also consider policy fees - a flat fee charged for each policy that represents standard administrative costs. I'm certainly not advocating getting more life insurance coverage than you need but the difference in cost between a $250,000 policy and even a $500,000 policy might not be huge so if you think you might need additional coverage it's something to consider. Lastly, make sure you select a length of coverage appropriate for your needs. One year term insurance will be cheaper this year but the cost will start going up substantially. If you need coverage for 10 years, buy 10-year term. If you need coverage for 20 years, buy 20-year term. Over the length of the contract the premiums will be level and you do not have to worry about a change in health which might prevent you from renewing your coverage if you select a term period too short. In full disclosure, I'm affiliated with the company referenced below but it is a source you can get affordable term life insurance from a reputable company while getting straight, honest, no hassle advice. Good luck.
6. It is wise to buy term life insurance from a financially strong company, with a good track record. I highly recommend shopping online at life insurance agency websites that offer you free life insurance quotes. You will not only get life insurance quotes from the most reputed life insurance companies, but also the best deals in the market because online agencies deal with hundreds of companies. Contrast this to local brokers who deal with a maximum of 3 – 4 life insurance companies, on account of which their best quote will only come from one of these. However, exercise caution when shopping online. Make sure that the online agency has a BBB-accredited website, and you are good to go.