Online Life Insurance Rate: How To Get The Best Rates

Online Life insurance rate depends a lot on your age, your overall health and the type of policy you buy. If you’re in excellent health or younger than the average policyholder, you’ll generally qualify for the best life insurance rates possible. If you’re older or suffer from an existing medical condition, the price of your policy will increase. In this post, We explained everything you need to know about Life insurance.

Life insurance carriers rely on different data sets to price policies, which is why it’s crucial to shop around before buying a policy you’ll have for decades or your entire lifetime. By shopping around, you’ll learn the average cost of a policy for someone of your age and health and get closer to finding the best life insurance rates for your situation.

Types of life insurance

Life insurance can protect your family from wage loss due to your death and funeral expenses, so carefully consider the policies available before making a final decision. Although unique policies with riders are written all the time, most life insurance policies fall into one of these categories.

1: Term life insurance: True to its name, term life insurance is only in force for a specific period of time that begins when a policy is purchased. Most term policies are active for a period of 10 to 30 years, a time during which no cash value accrues.

Families who purchase term life insurance policies will pay premiums for the duration of the policy and remain covered while it’s in force. Like other forms of insurance, if you don’t need to file a claim during the coverage term, a term life insurance policy doesn’t pay out any benefits.

Term policies are generally purchased by people who want low-cost policies that will cover them during their working and earning years.

1: Whole life insurance: Unlike term life insurance, whole life insurance is meant to be in force for the remainder of the insured’s lifetime. Covered persons or their families pay a premium to start the policy, which will remain in effect until the covered person dies or cancels the policy. Whole life policies accrue monetary value that can be cashed out or borrowed against and guarantee a premium for the policyholder’s lifetime.

Whole life policies are more expensive than term policies and are commonly purchased by individuals with large estates or who want coverage for life.

3: Guaranteed universal life: Guaranteed universal life (GUL) policies provide permanent life insurance like whole life insurance but usually cost less because the cash value grows much slower.

Also, most GUL policies give you the option to decrease your death benefit (also decreasing the cost of coverage) if you need less later in life, such as after you retire.

4: Index universal life: Much like whole life coverage, index universal life (IUL) builds cash value and provides a lifetime death benefit. However, IUL policies link the growth of the policy’s cash value to changes in one or more of the widely-followed financial indices, such as the S&P 500, Nasdaq-100 or the Dow Jones Industrial Average.

Like whole life and guaranteed universal life, these policies are typically purchased by individuals who want a lifetime death benefit and a policy that builds cash value over time.

What is the average cost of life insurance coverage types?

Life insurance rates will vary based on factors that are unique to you — like your age, health and the type of policy you buy.

If you want cheap life insurance, look for a term policy. Term life insurance rates are lower than other life insurance policies because if your policy expires before you pass away, your insurer keeps the premiums you paid.

A 20-year term policy with a face value of $250,000 costs a healthy 30-year-old about $150 a year. That’s less than most people expect, so if you’re worried about the cost of coverage, shop around. You might be able to find cheap life insurance below what you expected to pay.

If you want a permanent life insurance policy, you’ll pay more. Annual premiums range from $1,745 and $6,390 for healthy adults between the ages of 25 and 55.

Because the cost of life insurance depends so heavily on your age and health, the best way to know what you can expect to pay is to gather life insurance quotes.

What factors affect life insurance rates?

Life insurance rates can vary dramatically based on personal health, the age of the policyholder and personal behavior. The following factors play the biggest role in how life insurance carriers price policies.

1: Demographic definers:

Simple factors like your age and gender play a big role in the cost of your coverage. Your insurer uses these benchmarks to assume certain things about you, like how much longer you’ll live.

Your age is a crucial variable for life insurance carriers pricing a policy, and that’s true no matter which type of life insurance you buy. The older you are, the higher risk you pose to the insurer. When you buy a policy when you’re young, your insurers will likely get premiums for a few decades. If you purchase a policy when you’re older, there’s a higher likelihood you’ll pass away without paying a significant amount in premiums. Therefore, older consumers tend to pay higher life insurance rates.

Your gender also matters more than you might think when it comes to life insurance. Because women tend to live longer, healthier lives, women tend to pay lower life insurance rates on all policies.

2: Health:

Insurers want you to live as long as possible. The longer you live, the longer you’ll pay premiums. The provider is also less likely to have to pay out on a term policy. One of the most effective tools they have for determining your life expectancy is your health. Many life insurance policies require a medical exam as part of the underwriting process.

Your health history is a big consideration for insurers that write life insurance policies. If you have a history of health problems, a recurring medical condition or a chronic disease, insurers are more likely to decide that you pose too great a risk or charge much higher life insurance rates to offset that risk.

Your current health is as important as your health history. If you had health issues in the past but solved them, you’ll be in a better position to secure affordable life insurance rates.

Your weight is another health-indicating factor that life insurers consider. If you’re overweight, you’re more susceptible to lifestyle illnesses such as strained joints or Type 2 diabetes. These issues make you tougher to insure and could lead to higher premiums.

3: Daily activities:

Your insurer wants to know how long you’re going to live to maintain a policy, so it cares what you do as it relates to your longevity.

Your lifestyle matters when you’re ready to purchase a life insurance policy. If you drink or smoke, for example, you’ll pay much higher rates than if you abstain. Lifestyle factors that negatively impact your health make you a greater risk.

Your occupation plays a role in life insurance rates as well. If you work in a dangerous field where your life and health are at risk, you’ll generally pay higher premiums on any type of policy you buy.

Similarly, insurers look at your hobbies, driving record and criminal record to determine if you’re risky. If you regularly skydive or have several speeding tickets, insurers might determine you’re high-risk and deny you coverage. If you’re lucky enough to still get a policy, you can expect to pay more than someone leading a lower-risk life.

4: Coverage options:

Certain types of life insurance cost more than others. The more benefits you get from your policy, the more you’ll pay for it.

Your policy type matters. Term life insurance is generally less expensive than whole life or universal life policies. The type – and length – of policy you choose will play a role in how much you’ll pay over time.

Your policy amount – or, how much life insurance you buy – will influence your monthly life insurance premiums. The higher your coverage amount, the more you’ll need to pay each month or year to keep it up-to-date.

Online Life Insurance Rate: How To Get The Best Rates

Guide to getting the best life insurance rates

  • Learn about the types of life insurance you can buy
  • Find out which factors affect life insurance rates the most
  • Learn what to expect when you apply for a policy
  • Figure out the best ways to keep your life insurance rates as low as possible

Once you’ve entered your information and secured life insurance quotes, continue reading to learn more about the types of life insurance available, the application process and steps you can take to get the best rates possible.

How to keep life insurance rates as low as possible

If you want to secure the best life insurance rates possible, you’ll need to prove that you’re in optimum health. Unfortunately, that can be difficult if you have bad lifestyle habits or a medical condition.

While the total picture of your health may not be in your control, there are plenty of ways to improve your chances for approval and cheap life insurance rates. Here’s what you should do.

1: Make healthy changes:

The healthier you are, the less you’ll pay for your health insurance. To score cheap life insurance:

  • Stop smoking. Taking part in a smoking cessation program or quitting cold turkey are your best options if you want to improve your health over time and save money. To qualify for the best life insurance rates, you’ll generally need to have been smoke-free for at least two years.
  • Drink alcohol less often. If your life insurance carrier sees you drink alcohol fairly often, you may pay higher life insurance rates as a consequence. Conversely, drinking less often can help you qualify for lower life insurance rates and a policy with more generous terms.
  • Lose weight. Being overweight can lead to a slew of costly medical conditions, some of which may contribute to an early death. Insurers know this and price life insurance policies accordingly. If you want to save money on life insurance premiums, losing weight will help.

These changes can help you live longer and save money.

2: Eliminate risky behavior:

Insurers may charge higher rates if you work in a dangerous profession or have a poor driving record or criminal record. Changing your behavior so you present a lower risk is one way to keep insurance rates as low as possible.

What Affects Life Insurance Rates?

10 things that affect life insurance rates are:
1) Age
2) Gender
3) Tobacco use
4) Build
5) Health
6) Dangerous hobbies
7) Being a pilot
8) Type of policy chosen
9) The company through which the policy is purchased
10) Rates in the industry at that time

As a rule, the older the age the policy insures you to, the higher the rates.

Average Cost Of Life Insurance By Age And Gender

These annual life insurance rates are based on a $500,000, 20-year term life insurance policy for super preferred applicants.

AgeAverage annual rate for menAverage annual rate for women

Average Cost Of Life Insurance By Policy Type

These annual life insurance rates are based on a $500,000 policy for super preferred applicants.

 20-year term lifeWhole life
AgeAverage annual rate for menAverage annual rate for womenAverage annual rate for menAverage annual rate for women

Average Cost Of Life Insurance By Health

These annual life insurance rates are based on a $500,000, 20-year term life policy.

Age and genderSuper preferredPreferredStandard
Woman, 30$193$233$354
Woman, 40$288$354$521
Woman, 50$654$774$1,156
Man, 30$228$294$421
Man, 40$341$421$668
Man, 50$842$991$1,562

Average Cost Of Life Insurance By Term Length

These annual life insurance rates are based on a $500,000 term life policy for a 40-year-old applicant in the super preferred class.

Term lengthAverage annual rate for menAverage annual rate for women
10 years$211$185
20 years$341$289
30 years$595$478

Average life insurance rates by age were calculated based on quotes from five of the largest insurers: John Hancock, MassMutual, New York Life, Securian and Transamerica. Costs shown are for a man in excellent health. Additionally, gender life insurance rate charts used the same insurers and included applicants in excellent health.

Data from this study showing the cost by policy term length was sourced from Northwestern Mutual Life Insurance. Life insurance figures were calculated by looking at four policy amounts ($100k, $250k, $500k, and $1 million) across four rate classes. Below is the breakdown of each rate class:

Preferred plus policies assume no tobacco use in five years, no serious medical issues, cholesterol levels below 200 and blood pressure that doesn’t exceed 130/80.

Preferred policies assume no tobacco use in three years, above-average health, no serious medical issues, cholesterol levels below 240 and blood pressure that doesn’t exceed 135/85.

Select policies assume no tobacco use in 12 months, good health, blood pressure below 140/90 and cholesterol levels below 300.

Standard policies assume tobacco use in the past year, good health, cholesterol below 300 and blood pressure readings below 140/90.

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