Term Life Insurance Quotes

Why a Term Life Insurance Policy?

A term life policy is the most popular type… and for good reason. It is the most affordable way to enter the life insurance market, especially if you’re on a budget. This cost-effective policy option helps provide your family with a financial security blanket for a specified period of time… from 5 to 30 years. That’s part of what makes term life insurance so inexpensive, you choose coverage until you need it, perhaps only until your children finish college. A good term life insurance policy is flexible, with special “riders” that will waive premiums if you become disabled, or a conversion option. This option means that if you decide you want permanent life insurance, such as whole life or a universal life policy, you can convert your current policy, regardless of your health as long as it’s done before the term life policy expires. You will pay more for these options, but this kind of flexibility may prove valuable as you get older. But, first things first. The first step in finding the best deal on the coverage you want is to get term life insurance quotes from multiple insurers. Rates differ from carrier to carrier and are completely dependent on age, current health, lifestyle, family history, and a host of other so-called “risk factors.”

Why do you Need Term Life Insurance Coverage?

Term life insurance coverage might not be a perfect fit for everyone but it is a solid, cost-effective choice for people in their family-formation years when the need for protection is paramount. Buying a high amount of term life coverage on a budget is feasible for younger, healthier couples. That’s why it’s a great option in this particular life cycle because it’s when you will buy a policy to cover the time period of your greatest need — generally 20 to 30 years. As the name implies, term insurance provides protection for that specific period of time, pays your beneficiaries a death benefit if you die during that “term,” and the policy ends when you no longer need it. But while coverage is in effect, meeting family protection goals such as paying off a mortgage, or paying for your children’s college are among the key reasons term life insurance coverage could make all the difference in meeting your family’s financial obligations someday. The tax-free cash from the death benefit will cover any outstanding debts, including hefty funeral costs.

MDRT

What are the Advantages?

One of the greatest advantages of term insurance is its lower cost as compared to permanent or cash value life insurance, such as whole life or universal life. The reason it is cheaper is because you’re only paying premiums for the death benefit, the lump sum payment your beneficiaries will receive if you die during the term of the policy. Compare that to most permanent policies, which can build up cash value, in addition to funding the death benefit, but you will pay significantly more for that investment vehicle. Term life insurance is essentially an investment in your family’s protection, meant only to provide those who depend on you from financial hardship should you die unexpectedly. As aforementioned, life insurance benefits are not taxable to your beneficiaries. Your heirs will not have to pay federal income tax on that money.

What Determines Your Premium Rate?

Insurance carriers rate your risk of dying prematurely, thus resulting in the insurer having to pay the death benefit to your beneficiaries before you make a significant amount of premium payments. No one is perfect so there are degrees of risk on which these companies classify you.term life insurance rates Even if you’re very healthy with optimal weight, no chronic health conditions such as high blood pressure or elevated cholesterol, your family history and lifestyle could pose other potential risks. That is why insurers ask a lot of questions and may require you to complete medical tests when you apply for coverage to determine how much of a risk you are to insure. It’s a simple formula, the bigger your risk factors, the more you will pay for your insurance premiums. But not all life insurance companies use the exact same criteria to rate you so that’s why it’s important to shop for the right policy by getting term life insurance quotes from multiple carriers in order to improve your chances of getting the best price. The healthiest applicants will qualify for ‘Preferred’ or ‘Super Preferred’ rates, while the average person will qualify for ‘Standard rates’.

Key Factors That Affect Term Life Insurance Rates


Age and Gender:

Your age and gender are the two most important factors that will impact your rate. Youth has its advantages when it comes to getting the best term life insurance rates. The younger you are, the longer you are expected to live. Women usually get cheaper rates because they edge out men in life expectancy, according to U-S actuarial tables. So, the takeaway message here is to apply when you’re younger if you have a family who counts on your income for support. Insurers will reward you with their best rates, assuming you’re in good health and don’t smoke. Smokers will get slammed by insurers; paying double and triple rates. But Millennials, men and women under age 50 can cash in on their longevity now by comparing the cheapest term life insurance quotes out there.

Health and Family History:

Who can claim perfection when it comes to our health? It is an elusive concept because there are many variables. Being of perfect height and weight is rarely attainable for most people and the guidelines vary among insurers as to who meets the standard. Some carriers are more lenient than others on those extra pounds, as they are when it comes to applicants with hypertension (high blood pressure), and non-insulin dependent diabetes, as long as these conditions are controlled and medically stable. Other chronic issues such as elevated cholesterol, cancer, and heart disease are more serious conditions that will hike your premiums to higher risk classes. The rates for a good term life insurance policy rated as “Standard” might not be as bad as you think. Your family history can work for or against you when it comes to your overall health rating. If your mother or father suffered a stroke or heart attack and died relatively young, this will hurt your rating even more. But if they are alive and healthy, it will help you score that Standard rate class. Life insurance underwriters value medically conscientious and responsible applicants. Know your numbers and get treated with medication and an exercise program to improve your overall health. But it’s a good idea to be aware before you undergo that insurance physical. There is, however, no commitment when shopping for a term life insurance quote just to get an approximate idea of prices.

Sample 10-Year Term Life Insurance Rates

Age$250,000$500,000$1,000,000$2,000,000
30$9.46$13.76$20.68$37.41
40$11.61$18.06$28.71$51.18
50$23.65$40.62$71.07$135.57

*Please note that these rates are for Preferred Plus rating class males and are subject to change.

Sample 15-Year Term Life Insurance Rates

Age$250,000$500,000$1,000,000$2,000,000
30$10.51$15.05$23.65$42.57
40$12.97$20.21$34.83$64.93
50$30.82$54.32$99.47$192.37

*Please note that these rates are for Preferred Plus rating class males and are subject to change.

Sample 20-Year Term Life Insurance Rates

Age$250,000$500,000$1,000,000$2,000,000
30$13.11$20.21$33.97$62.77
40$17.85$28.32$49.17$91.77
50$41.43$69.92$129.57$252.57

*Please note that these rates are for Preferred Plus rating class males and are subject to change.

How to Choose the Best Term Life Insurance?

After you receive those initial life insurance quotes, it’s time to look deeper at the providers. Price is important but not the only criteria you should use in choosing the company and policy for which you will apply. Ratings matter when it comes to the best carriers and we will only show you companies with an “Excellent” A.M. Best rating. These rating services, including Fitch, S&P, and Moody’s rank carriers for their financial strength to make sure they will be there when you need them and be able to make good on their commitments to policyholders. That is critical when choosing a term life insurance policy that is going to provide your family with a safety net for decades.

Is Life Insurance Necessary for Everyone?

It all depends on your cycle of life. If you are young, single, childless, or have no other dependents relying on your income, you probably fall into the category of not needing life insurance. If you are at the opposite cycle of life— older, financially stable with plenty of savings to provide for yourself and your spouse, you could also forego life insurance.

Employees, who have employer-provided term life insurance coverage often think they don’t need more but is that policy really enough to cover their needs? Will your spouse or other dependents need more than the minimal coverage your company pays for? Multiply your income by ten and see if the existing policy measures up. The other caveat in deciding whether to shop for life insurance now or later is that buying when you are younger and healthy will cost a lot less. Qualifying for a policy at this stage of life will be far easier and your insurance premiums significantly lower than waiting until later.

Not All Term Policies Are Equal…

When comparing term life policies, there is more to it than price. You should ask our licensed agents about extra features called “riders” which can be valuable enhancements to your coverage if you become ill or disabled. Some policies are inclusive of these special provisions while others will charge you more for them. Here are a few:

Convertibility: This option is available in some term policies during specific periods while others allow it for the life of the policy. This valuable option lets you convert your term policy to permanent life insurance— whole life, universal life, etc., without proving insurability. In other words, you don’t have a take a medical exam to prove you are healthy. That conversion feature is invaluable as you age.

Return-of-Premium Option: This unique type of term policy literally offers a money back feature. If you keep one of these policies in force for its entire 20-year term, the insurer will refund the premium payments you made over that 20-year period. Of course, that “gift” doesn’t come cheaply… the price for a return-of-premium policy can be a third higher than a “standard” term policy but it may be worth the price.

Accelerated Death Benefits: Allows a terminally ill person to collect a significant portion of the policy’s death benefit while they are alive.

How Much Do I Need?

how much life insurance do I need

This basic salary multiplication rule does not take into account your family’s detailed needs, nor does it consider any savings, assets or existing life insurance policies you may have.

That is why we are providing this detailed formula below to customize a coverage amount that may be closer to your reality:

What Happens When the Term Ends?

You don’t build any equity when you own a term life insurance policy. When it expires, you don’t get any money back. The greatest value was the cash benefit it offered your beneficiaries in case of your death. You can choose to renew that policy at the end of the term but it will cost you more because, among other things, you will be older and your rate will be assessed at your current age. Plus, you will have to prove your insurability, i.e., take a medical exam to determine your health status.

Renewing this policy may be prohibitively expensive. That is why you should give careful consideration when shopping for term insurance to choose a lengthy policy that will cover your needs for as long as possible. Longevity is better because you can always choose to let your coverage lapse by stopping premium payments at any time.

Lowest Rates in Decades

The bottom line is that term insurance rates have dropped precipitously in the last 20-years because our life expectancy has increased. It may be cheaper, in the long run, to purchase a new term policy today than it was a decade ago despite your age, as long as you’re in good health.

We know life insurance can be complex and confusing but don’t let that stop you from exploring your options and shopping for a solid term life policy for a price you can afford. A qualified LifeQuote agent can guide you to the choice that is right for you and your family.