Term Life Insurance Rates Explained

It has long been established that using the internet is the easiest way to shop for life insurance rates. Generally, all you have to do to get free, accurate and instant life insurance rates from top companies like AIG, Banner, West Coast Life, Transamerica, RBC Direct, ING, HSBC, MetLife and many others, is enter a few personal details into a term life insurance online quote form. Within seconds you will receive dozens of life insurance quotes. Below is an example of the rates men and women can expect to receive as a non smoker asking for $250,000 of cover up to the age of 65:

This technique is simple and far more convenient than leafing through the Yellow Pages. However, for any of the resulting information to be useful, it must also be accurate. 

The reason why life insurance rates aren't always accurate is not because life insurance companies are trying to fool you, but because the description that most people provide regarding their health is at variance with how a life insurance company might describe it. 

With millions of dollars at stake this is not something that life insurance companies take lightly. It would be fair to say that most people have a tendency to describe their health as better than it is, more as a means of fooling themselves than anybody else. 

To get the most accurate preliminary rate before applying for life insurance you have to understand life insurance rating categories and where you are likely to place...

Most companies use four general categories:

Preferred Plus Life Insurance Rates:

If you fall in to the Preferred Best life insurance rating category, you will receive the best possible rate. You should realize ahead of time, however, that most people do not qualify for this category.

You basically need to have perfect health, be within a certain range of height and weight, have good cholesterol and blood pressure ratings, not be taking any kind of medication, and not have any immediate family history of heart attack or stroke before the age of 65.  Additionally, there can be no history of drug or alcohol abuse, and the applicant cannot be engaged in any hazardous activity.

Preferred Life Insurance Rates:

There is some variance between different life insurance companies when it comes to defining both preferred and standard risks. Generally, however, a person must be in excellent health to qualify for preferred life insurance rates. 
Take, for example, Preferred Plus, one cannot be involved in hazardous activities whether on or off the worksite, and one must have cholesterol, weight and blood pressure within acceptable limits.

Standard Life Insurance Rates:

If you have had some medical problems in the past, if your cholesterol, blood pressure, or weight is less than ideal, or if you engage in certain hazardous activities (or any combination of the above) this is probably the category you will qualify for. 

One thing to keep in mind is that some of the risk factors that life insurance companies look at are within your control. If, for example, you have high cholesterol but you bring it down for a certain period of time through diet and exercise, you may be able to qualify for a different life insurance rating. If you have improved your health over time you may wish to get a fresh set of life insurance quotes.

Tobacco Life Insurance Rates:

This life insurance rating category is rather self-explanatory. Remember that cigarette smokers are only one group of tobacco users. If you smoke a pipe or cigars or if you chew tobacco, you will also fall into this category.

Life Insurance Agents

The best way to know in advance which category you are likely going to fall in to is to speak to an experienced life insurance agent. As long as they have accurate information from you, they should be able to tell very quickly which category you are likely to qualify for. 

They should also be able to tell you can which life insurance companies are going to give you the best rate based on your particular situation (try to find agents who deal with at least 5 or more life insurance companies). 

Most people who do a good job of comparing insurance rates can save 10 to 20 percent which is why it makes sense to take a moment or two to get a quote on the type of insurance you are looking for. 

Where and whenever possible, Beyond Quotes provides rates that are free, instant, accurate and comprehensive.