Understanding The World Of Term Life RatesUnderstanding The World Of Term Life Rates

You can run an instant quote across the web and you generally get a page full of colorful plan names (with some twist on "assurance" or "protect" built in), carrier logo's, and a long line of term life rates. It can be overwhelming especially on the rate side so it's good to go into the process of purchasing term life insurance with a little knowledge on what drives term life rates...and most importantly, how do you find the best rate for you.

In general, when you run your instant quote through out term life insurance quote engine, the rates you get are the best on market for a given situation. The key phase there is "given situation". What's included in this bucket of facts is your age, gender, and health class. All three of these details that drive term life rates are important and obvious since they all drive mortality risk. Age is an obvious one. Gender is a little less obvious until you consider that the average life span for men is shorter than it is for women. The last one is trickier to estimate. Health Class is a category of ratings that directly affect your term life rates. It's pretty easy to correctly list the age and gender but you should probably check out our health class article to better understand where your rates fall.

Back to the term life rates that appear in your instant quote. The rates listed on down the page are monthly amounts you will pay to keep your policy in effect. With insurance, you can usually pay quarterly or annually and there can even be a savings in doing so. The other advantage is that the policy is less likely to cancel with a monthly billing that might be missed or paid late.

You'll notice that's there probably not too much difference in cost across the spectrum. Term life has become a commodity in today's world where the benefits and rates have narrowed in the market. This is good news. It means that you are likely to get a good rate and more importantly, unlikely to pay way too much for your coverage. We take this a step further by allowing you to quote multiple carriers and plans side by side for a given term life amount and length of term. It never makes sense to quote just one carrier the way some insurance agents do as there may be certain price points or plans that work specifically well for your age/gender.

The biggest impact on your term life rates is age. Your rates will be locked in based on the age that you apply for coverage. This is where the term, "Cost of waiting" comes from. If you purchase $500K for 10 years of term at age 35 versus age 40, you could pay significantly more in waiting the extra years. Also, you are at risk during that first five years of paying $500K (in the form of lost benefit) if the unforeseen happens. If you're going to get term life insurance at some point, there's absolutely no reason to wait. It completely defeats the purpose of life insurance and you'll end up paying more anyway. It's a lose-lose situation.

Keep in mind that the underwriter will determine the final health class and rates. The quote gives you a good base but be conservative in case something comes out of the paramedical exam or application process and the carrier offers higher term life rates than you originally anticipated.
by Dennis Jarvis
References and Bibliography
Dennis Jarvis is a licensed insurance agent concentrating on term life insurance. Shop, compare, and instantly quote multiple carriers with professional guidance and resources.
Rated:NR/0 Votes
1 Views
Add To My Article Reading List
Add To My Article Reading List
Print Article
Print
More Article By Dennis Jarvis
More Article by Dennis Jarvis
Share
More Articles From Insurance
More Articles From Insurance
Related Articles and Readings
There Are Really 3 Different Term Life Quotes By: Dennis Jarvis
You'll notice on our home page at etermlifeinsurancequotecom about half way down the page that there's a "which one are you" ...
Term Life Insurance And What Does Annuitant Mean By: Joe Bella
In the insurance parlance, Annuitant is defined as a person who benefits from a pension or annuity. It can also be said to be a contract with an insurance company which is designed to give payments to the holder of the policy at specified intervals. The insurance payments are usually ...
Important Times When Term Life Insurance Should Be Purchased By: Donny Lowy
Term life insurance is a great tool that can provide financial protection to family members if a main income earner passes away. It is also a great tool for dual income earner families, where both spouses supply needed income to the family.Term life insurance is cheap enough that it makes ...
Term Or Whole Life Insurance Which One Is Best For Me By: Douglas T Zinkevicz
There are basically two kinds of life insurance: Term Life Insurance and Whole Life Insurance. Term life insurance insures your life for a term: 5 years, 10 years, 20 years, while Whole Life insures your life for, you guessed it, your whole life. Term life insurance is generally less expensive ...
Life Insurance Money Saving Tips By: Ken Barnes
Life insurance, specifically Term Life, is arguably one of the best values in the entire financial services arena. Where else can you go and get hundreds of thousands of pounds in protection for literally pennies per day? Rates for Term Life insurance remain at all-time lows, and now is the ...
The information provided in this article and/or the comments is the sole responsibility of their respective authors and does not necessarily reflect the opinion of ezinepost.com. ezinepost.com  does not endorse any article and/or comments published by our web users unless otherwise noted. 

Member Panel

login to submit articles and more

StatisticsEZINEPOST.COM

  • » Active Categories: 419
  • » Active Articles:252609
  • » Active Authors:31915
  • » Active Members: 38222
  • » Statistics Updated:
    - Thu May 7th, 2020 12:50AM EST