If you are considering life insurance, shopping around for the best rates is a must. However, shopping through the dozens of companies that offer life insurance rates can be tedious at best. Luckily for you, we have done a lot of the leg work for you! Consider some of the following companies below as starting points for getting some of the best rates.
Not All Companies are Best for All Customers
Before we start in on our list, there is something important for you to consider. There will be companies that excel in offering life insurance for particular customers but not for others. For example, there may be a company that is best in class in offering coverage to those under 30 but falls behind the competition with older clients. Take note of the category you fall into when considering which company to do business with.
Depending on What Category You Fit into, Your Rates Will Vary
Here are some factors to consider that will affect your rates, possibly pushing you towards one company over another:
- Your Age
- Your Gender
- Your Health
- Your Location
- Your Career
Generally, the younger you are, the better your premium will be. That is because those who are young are far less likely to die quickly. This allows the company to profit off of your premium before you pass away. The longer you live with an active policy, the more the life insurance company stands to make.
It may not seem fair, but this is definitely a factor in your premium. Women will almost always pay less than men. Why is that? Because women statistically both live longer and do fewer things that are dangerous. If that bums you out, do not worry. Your age and health are far more impactful factors in determining your premium.
The healthier you are, the better your premium will end up being. This is related to your age: the healthier you are, the more likely you will live longer. The longer you live, the more money a life insurance provider will collect a premium from you. This factors in lifestyle decisions as well. If you smoke, drink heavily, or are overweight, you can expect to pay a higher premium. Most will have you do a physical in order to qualify for their best rates.
Where you live can also impact your rates. Just because you find a nice advertised rate does not mean it will be available in your location.
Have a dangerous career? That will also factor into the specific rate you are offered by a life insurance company. The more dangerous the career, the higher your premium will be.
The Companies that Offer the Best Rates
Without further delay, the following companies offer fantastic rates based on the category of customer you fall into.
- Protective Life
- Mutual of Omaha
- Principal Financial
- Banner Life
- Lincoln Financial Group
If you are under 30 and looking for life insurance, this company should be one of your number one picks. Their rates are incredibly low if you happen to be healthy. Both men and women can find rates as low as $9 a month, which is incredible. Their financial strength is rate an A+, which means the likelihood that they will be around in the years to come to pay our your life insurance is very, very good. This company is not ideal, however, for those that have chosen unhealthy lifestyle choices. If you are a smoker, you will find your rates are three times as high as they otherwise would be.
This company is a great choice if you are not looking for million-dollar policies. Many customers just want basic coverage, maybe just for funeral expenses, or may just for a little financial nugget for those you leave behind. If you do not have much debt, like a mortgage or student loans, minimal coverage may be ideal. You will find their rates are pretty reasonable, too. You can expect around $10 -$30 per month depending on health and age.
On the other hand, if you are looking for a Cadillac of coverage, this company offers some of the best rates for large policies. If you have a large mortgage, a family you want to be able to set for life in the event of your untimely passing, or other large debts, you will want to consider a large policy. You can expect rates from $11 - $35 per month, depending on age, health, and coverage options.
This company excels in policies that will be a struggle for many other life insurance providers: pre-existing conditions. You may have difficulty finding a policy at all if you have already been diagnosed with a serious ailment, but you can rely on this company to provide a reasonable rate. You can expect rates to be between $30 - $100 a month, depending on the policy coverage amount, as well as the length of the insurance term. A great perk of this company is an option called a "free accelerated death benefit rider," which can also be hard to find. It means if you are diagnosed with some kind of terminal illness, you can get a cash advance on your life insurance policy. This allows you to have cash on hand to tackle medical bills, pre-pay funeral expenses, and more.
If you are over the age of 70, this company is one of your best options for providing coverage that will not break the bank. Even if you are not in perfect health and elderly, this company will still be willing to underwrite a policy for you. They even offer permanent life insurance policies so you can get one and not have to worry about re-upping in the future, another ideal option for seniors.
As you can see, there are all kinds of different options for life insurance, and which one you pick will be determined on a number of factors. However, a good rule of thumb is to try to lock in a rate while you are young, be as healthy as possible, and make good lifestyle decisions. That will help you to consistently find the best rate possible.
How Much Life Insurance Do I Need?
Shopping for life insurance can be a daunting task. Not only are you faced with the certainty of your own morality, but how do you even decide how much to insure your life for? Luckily, there are several factors to consider when determining how large of a life insurance policy you should get. Asking yourself the following questions will help you hit that sweet spot of enough coverage without spending too much on premiums.
What do you want to accomplish with your life insurance policy?
This general question will help guide you to the ultimate goal of why you are getting life insurance to begin with and hopefully will guide you towards an approximate amount of life insurance your policy should cover. In general, most people are getting life insurance to make sure their loved ones are able to easily care for funeral costs and debts. If that is the case for you, consider the following questions.
- Do you have a family?
- Do you have a mortgage?
- Do you have student loans, and if so, how large?
- How much general debt do you have?
Generally, if you have a partner and/or kids, you will want your life insurance policy to offer a large amount. You will want to consider things that will need to be paid for that you will not be around to help with, including the general cost of raising children, college tuition, and more.
Also, consider that your partner may not be able to return immediately to work or may only be able to work in a limited capacity because of children. A life insurance policy can help ease all of those financial concerns. You will want to consider several hundred thousand dollars for this factor alone.
Speaking of trying to reduce financial strain, do you have a mortgage? If you do, your life insurance policy should, at a minimum, be able to pay off your house in the event of an untimely death. That removes a huge financial burden for those left behind, giving your family the option of living with minimal home costs or, if you have no one living with you, giving your heirs the ability to easily sell your home.
Student loans are a very sticky kind of debt that you will want those you leave behind to easily pay off, especially if you are leaving behind a partner or family. Again, having a policy that covers, at minimum, your student loans is a fantastic idea in gauging how much you want your policy to cover.
Ideally, those you leave behind should not be dealing with any of your debt. A mortgage and student loans are generally the biggest ones, but you should consider cars, credit cards, health insurance costs, and more.
Of course, though these questions focus around primarily resolving debt, there are other factors to consider when thinking about how much life insurance to get.
What kind of funeral do you want?
What kind of funeral you want and how you want to be buried can play a role in the kind of life insurance you get.
If you plan on getting a casket, have a gravestone, getting a cemetery plot, and more, and plan on life insurance covering that, that is already upwards of $10,000 or more in expenses. If you do not plan on having any other finances or assets to leave to your heirs or loved-ones, they may either not be able to follow your own wishes or may have to pay for it out of their own pocket.
Life insurance can be a tool to ease the stress off of those that will have to plan and potentially pay for your funeral.
What kind of inheritance do you want to leave for your heirs?
Do you have a tremendous estate that you are already planning on dividing up amongst your heirs, or are you already struggling to keep afloat financially? Having an insurance policy simply to leave for others is a great way to make sure they are taken care of.
It can be for immediate family, like we have mentioned, but it can also be used for any other person you want to be sure is taken care of in the instance of your passing.
How old are you?
The younger you are, the less costly your life insurance will be, and the reason is simple. The younger you are, the less likely you are to die, and the less likely an insurance company will have to pay out your policy.
Sometimes, the difference between hundreds of thousands of dollars in policy coverage equals just a few dollars difference per month. If the cost is minimal, consider getting a large policy and locking in the rate for its duration.
How healthy are you?
There are two sides to this coin to consider. We will break it down for you:
- If you are healthy
- If you are unhealthy
Your premiums will generally be lower, especially if you go with a policy that has you do a physical before signing up. It makes sense, the healthier you are, the less likely you are to die. You may want to get a large policy simply because it will be inexpensive, but you will be less likely to use it.
If this is the case, your premiums will likely be higher. This includes existing health issues as well as lifestyle choices like if you smoke, drink regularly, or are overweight. Your premiums may be higher, but you will also be more likely to use the policy, as you are more likely to die.
There is a lot to consider in getting a life insurance policy for yourself.
Generally speaking, if you are looking to make sure your debts are covered and your loved ones are financially taken care of, you will be looking at policies of at least $250,000, but likely more if you have a mortgage, student loans, or other large debts.
It is not uncommon to have coverage of a million dollars or more (and this does not mean your premiums will be sky-high, either).
Be sure to assess your needs and get the right policy to achieve your after-death goals!
