If you’re looking for affordable life insurance quotes but don’t know quite where to start, you’re in the right place. In this article we’ll cover the basics of life insurance, including factors that may impact your rates, what to look for in a policy and what documentation you’ll need in order to get quotes.
Let’s dive right in!
Policies, Premiums and More
Before we get into the nitty gritty, let’s get a quick overview of the types of life insurance and define some commonly-used insurance phrases.
First, there are two main types of life insurance policies from which to choose:
Term life insurance: This type of life insurance provides coverage for a set period of time, typically from 5 to 30 years. Term life insurance guarantees a death benefit payout if the policyholder dies within the coverage period. Your monthly premium (the amount you pay each month to maintain coverage, just like with an auto insurance policy) will vary based on the amount you select as a death benefit payout. Term life insurance is a great option for people who just want to cover specific debts or expenses upon their death.
Whole life insurance: This type of policy is different in that there is no term period. As long as you’re making your monthly premium payments, your coverage stays in effect. Whole life insurance also provides a death benefit payout for beneficiaries, just like term insurance; but keep in mind that this type of insurance tends to carry higher monthly premiums due to the fact that it never expires.
Now, there are other types of life insurance, but most of them fall into one of these larger categories. For instance, final expense insurance is a type of whole life insurance policy, but it carries a smaller death benefit payout as it is specifically for paying off end-of-life, funeral or cremation-related expenses.
Factors that Impact Life Insurance Rates
So now that you know the basic types of life insurance available, let’s look at some factors that can impact your monthly premiums.
- Age. Unsurprisingly, one of the top factors determining your insurance costs will be your age. The older you are, the more likely it is that your life insurance company will have to pay out a benefit at some point, which means you’ll pay more on a monthly basis for your premiums.
- Health. People in good health generally cost less to insure. If you have ongoing medical conditions or a chronic illness, it may be difficult for you to acquire life insurance at all.
- Family medical history. Since some health issues are genetic, your family medical history will be part of what determines your monthly life insurance rates. If cancer, diabetes, or other major medical issues run in your family, you may see an increase in your premiums.
- Lifestyle. For obvious reasons, your lifestyle and hobbies play a big part in determining your life insurance costs. If you’re into risky activities like rock climbing, you may pay more in comparison to someone whose hobbies involve fewer life-or-death situations.
- Smoking. According to the CDC, smoking cigarettes increases the risk of death from all causes for both men and women. Because smoking is detrimental to your health, most insurance providers will increase their rates if you regularly smoke.
What to Know Before Getting Life Insurance Quotes
Now that we’ve covered some basics, you’re probably ready to start getting some quotes to see who can offer the most affordable life insurance policies. But not so fast – there are a few things you’ll need to consider before you chat with an agent.
- Know how much coverage you need. Are you wanting a life insurance policy that will just cover final expenses, or do you have a mortgage or other debt that will need to be paid upon your passing? Add up any expenses that may remain after your death, and use the resulting figure as a ballpark for your coverage amount.
- Assemble some basic paperwork. To get a life insurance quote, providers will start by getting details about you and your health. Gather any relevant medical records, along with proof of your identity, income and residency. Note that some providers will require you to have a medical exam before you can be approved for a policy.
- Select your beneficiaries. Beneficiaries are the people who are given charge of the death benefit payout after you’ve passed away. They are the ones who receive the money and can then use it to settle your affairs. Most people select a child, relative, friend, or other trusted individual to be their beneficiary. You can select one beneficiary or multiple beneficiaries.
- Take a hard look at the providers. No two insurance providers are the same. Before you settle on a provider, make sure you do some research to be sure they are a financially stable and trustworthy source for your life insurance.
Ask an Expert at Americo Senior Life
Once you’ve done all this background work, getting life insurance policy quotes and comparing them side-by-side is the easy part. Look at what each provider offers in terms of coverage, and weigh it against their monthly premium rates. Whoever can offer you the amount of coverage you need at an affordable cost is the clear winner.
Still have questions, or ready to get started on a quote? An Americo Senior Life representative will be happy to answer your questions and help you chart your financial course. Contact us or apply online today!