Compare life insurance quotes and policies in 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 5:53 p.m. UTC Nov. 7, 2023
Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.
Shapecharge, Getty Images
It’s important to compare life insurance quotes before you purchase a policy. Whether you’re looking for term life insurance quotes or shopping for a permanent life insurance policy, here’s what you need to know to make the best decision.
What to consider when comparing life insurance quotes
The journey to finding the best life insurance policy for your needs and budget begins with comparing life insurance quotes. These tips can make it easier to find a policy that matches your goals.
Choose the right type of life insurance
Before you can get life insurance quotes, you need to determine what type of coverage you want. Initially, this means choosing between two primary types of insurance: term life insurance and permanent life insurance.
Term life insurance
Term life insurance allows you to lock in rates and coverage for a specific period, or level term, such as 10, 20 or 30 years. If you die during the policy term, your beneficiaries will receive the death benefit payment.
Permanent life insurance
Permanent life insurance generally provides coverage for the duration of your life, though some policies expire at an advanced age, such as 105 years old.
These policies typically include a cash value component, which grows over time. You can access the cash value of your policy while you’re alive, though it typically reverts back to the insurer upon your death.
Types of permanent life insurance include the following.
- Whole life insurance.
- Simplest form of permanent life insurance.
- Offers fixed premiums and a guaranteed death benefit.
- Often includes a cash value component set at a fixed rate.
- Universal life insurance.
- Lifelong coverage with a cash value component that depends on market performance.
- Policies frequently have flexible premiums or death benefits, depending on the type.
- Multiple types available, including indexed universal life, variable universal life and guaranteed universal life.
- Variable life insurance.
- Rarely sold in today’s market, though the term is commonly used to refer to variable universal life insurance.
- Has level premiums, a flexible death benefit and a cash value that depends on your investment selections.
- Burial or final expense insurance.
- Usually a minimum amount of coverage, such as $25,000, that beneficiaries can use to cover funerals, burials and other end-of-life expenses.
- No-exam life insurance.
- Refers to any type of life insurance — permanent or term — that doesn’t require a medical exam at the time of application.
- No-exam life insurance is often more expensive than coverage that requires a medical exam.
- Guaranteed issue life insurance.
- Does not turn applicants down, making it an option for those who may not otherwise qualify for coverage.
- Typically more expensive.
As you begin your search for coverage, Michael Demkiw, president and founder of Third Tier Wealth, recommends assessing your personal needs.
For instance, “If you have a medical issue preventing you from obtaining the highest coverage at the best price, a policy that allows you to avoid a medical exam may be necessary,” said Demkiw. “It will come at a higher cost and have certain restrictions, but your family will have some coverage and the additional help they’ll need.”
“Or suppose you plan to use life insurance to protect generational wealth or for estate purposes,” he said. “In that case, you may need a whole life insurance policy with a track record of paying dividends.”
Choosing the right type of life insurance for you will depend on your unique financial situation and priorities.
Not sure which type of life insurance you need? Learn more about the types of life insurance.
Decide how much life insurance coverage you need
After choosing the type of life insurance you want, it’s time to determine how much coverage you need. There’s no one-size-fits-all number when it comes to life insurance, but there are factors that can help you choose an appropriate coverage amount.
Here are some factors to consider:
- Your income. Do you want to provide replacement income for your family after your death? If so, for how long?
- Mortgage. If you have a mortgage payment, do you want your life insurance benefit to help a loved one cover the balance?
- Other debts. Consider any other outstanding debts your loved one may be confronted with.
- Educational expenses. Do you want the death benefit to pay for a child’s tuition or college expenses?
- Existing assets. Will your loved ones be able to rely on savings, retirement or other financial accounts in your absence?
- Other life insurance policies. Do you have any other life insurance policies? If so, factor in their value and duration. However, be cautious if relying on supplemental life insurance policies tied to an employer.
Speaking to a financial advisor can also help you determine how life insurance fits into your bigger financial picture and how much coverage you need. It’s also a wise idea if you’re considering a permanent life insurance policy. They’ll be able to discuss policy types and which one is most suitable for your goals.
Get and compare multiple life insurance quotes
Ideally, you should get at least three life insurance quotes. Rates vary by insurer, and multiple quotes can provide a general idea of how much you’ll pay for coverage.
When comparing quotes, keep the following in mind:
- Make sure each quote is for the same life insurance type and coverage amount, so you’re comparing apples to apples.
- Consider each insurer’s financial strength, or the likelihood it will be able to pay out on the policy or honor cash value withdrawals. There are several major credit rating agencies, such as AM Best and Standard and Poor’s (S&P), that provide this type of analysis for consumers.
- Check online reviews by industry experts.
- Look for feedback from trusted friends, family and coworkers.
Compare average life insurance rates: Cheap life insurance rates
Don’t automatically go with the lowest premium
It’s tempting to go with the lowest rate and call it a day, but that’s not always the best approach — especially if you’re shopping for permanent life insurance.
Permanent life insurance policies typically have a cash value component. The premium you pay for a policy will be split among the cash value account, the cost to insure you and policy charges and fees.
Any life insurance company you choose should be able to provide a policy illustration that can help you understand the growth potential of a cash value life insurance policy.
These illustrations often reflect internal costs, but they don’t tell the full story. According to Barry Flagg, inventor and founder of Veralytic, an independent life insurance research company, “Customers should insist upon a cost disclosure page.”
The exact name of these pages can vary by insurer, said Flagg, but the document is vital to understanding the true cost of your policy, especially for products like indexed universal life insurance (IUL).
He added that an illustration could make a product look really great, with low premiums or high cash values, but that the cost disclosure could reveal that the product has higher expenses or a really high rate of return assumption, neither of which would be evident based on the illustration alone.
Buy a life insurance policy while you’re young, if you can
As a general rule, the younger and healthier you are, the more affordable a life insurance policy will be.
For instance, here are average life insurance quotes for a healthy, female shopping for a $250,000 term life insurance policy at different ages:
- 30 years old: $142 ($11.83/month).
- 40 years old: $193 a year ($16.08/month).
- 50 years old: $392 ($32.67 a month).
That’s assuming there are no health complications along the way. Health conditions such as diabetes, obesity and heart disease will generally increase your rates. They may also make it more difficult to secure coverage.
Where to get life insurance quotes
You can compare life insurance quotes in multiple ways, including:
- Online through an insurer’s website (when available).
- Over the phone or in person with an agent.
- Through an independent insurance agent or broker who can provide quotes from multiple insurers.
- By using an online marketplace that can provide quotes from multiple insurers.
In some cases, you can get your quote in minutes after answering a series of questions. That’s more common for term life insurance quotes.
In other cases, such as when you’re shopping for whole life insurance quotes, you may need to complete an application online and wait to receive quotes via email or over the phone. And some insurers require you to work directly with an agent to get a quote.
Ethos
Factors that will affect your life insurance quotes
The quotes for your life insurance premiums will depend on several factors, including:
- Type and amount of coverage.
- Internal policy fees and charges.
- Your age and gender.
- Health and medical history.
- Family health history.
- Prescription drug history.
- Nicotine and marijuana use status.
- Driving record.
- Professional and hobbies, especially if considered risky.
Further, term life insurance is generally less expensive than permanent life insurance. And men usually pay more for coverage than women. To get a better sense of what you will pay, take a look at the rates below.
Term life insurance policy quote examples for a female
| AGE | $250,000, 20-YEAR POLICY | $500,000, 20-YEAR POLICY | $1,000,000, 20-YEAR POLICY |
|---|---|---|---|
| 30 | $142
| $205
| $325
|
| 40 | $193
| $307
| $526
|
| 50 | $392
| $685
| $1,227
|
| 60 | $934
| $1,691
| $3,206
|
Life insurance quotes represent example annual premiums for a female at different ages. Rates are based on healthy applicants who do not use nicotine or tobacco products.
| |||
Term life insurance policy quote examples for a male
| AGE | $250,000, 20-YEAR POLICY | $500,000, 20-YEAR POLICY | $1,000,000, 20-YEAR POLICY |
|---|---|---|---|
| 30 | $162
| $252
| $408
|
| 40 | $224
| $360
| $628
|
| 50 | $499
| $891
| $1,681
|
| 60 | $1,375
| $2,445
| $4,716
|
Life insurance quotes represent example annual premiums for a male at different ages. Rates are based on healthy applicants who do not use nicotine or tobacco products.
| |||
Whole life insurance policy quote examples
| AGE | FEMALE | MALE |
|---|---|---|
| 30 | $2,219
| $2,536
|
| 40 | $3,296
| $3,639
|
| 50 | $4,837
| $5,220
|
Life insurance quotes represent example annual premiums for healthy male and female applicants at different ages.
| ||
Frequently asked questions (FAQs)
Life insurance isn’t required, but if you have loved ones who depend on you, it’s worthwhile to consider. Having a policy in place can help your life insurance beneficiaries avoid a financial catastrophe in your absence.
A life insurance policy may also be useful if you’re a business owner. A policy can be used to fund a buy/sell agreement, equalize an estate or provide protection to your family after you die.
If you don’t have any dependents or you have enough savings to cover your obligations, you might not need life insurance.
It’s best to buy life insurance when you’re young and healthy, such as early as your 20s or 30s when rates are lower than they will be in your 40s or 50s. It can be tempting to put off buying life insurance until you’re older, but the reality is that it gets more expensive with each passing year.
That doesn’t mean you’re out of luck if you wait. There are plenty of life insurance options, available as you age, including life insurance for seniors.
You can buy life insurance for someone else if they agree to it and there is insurable interest.
Having insurable interest means that the individual would suffer financial hardship if you were no longer there to provide for them. To prove insurable interest, you might have to submit identification and talk to the insurer before they can move forward with issuing a policy.
Life insurance is a formal contract between a policyholder and insurance company that promises a death benefit, or lump-sum payout, to the insured’s beneficiaries in exchange for regular premium payments.
A policy can have one or more beneficiaries, such as a spouse, partner, child, grandchild or business partner. A beneficiary can also be an entity, like a charity.
There are several types of life insurance policies available, but each fits into one of two categories: term life insurance or permanent life insurance. Exactly how your policy works and how long coverage lasts depends on the type of coverage you choose.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
