How Do Insurers Calculate Life Insurance Rates Anyway?

We had a question! A concerned reader wanted to know what factors that insurers use to calculate the cost of life insurance. The previous link provides a good overview by the way.

Of course, your own premium will depend upon the amount of coerage you apply for. Beyond that, the type of life insurance you want will make a difference too. Obviously, cash value life insurance like whole life or universal life, will cost more than term costs for the same amount of face value. A $100,000 whole life insurance benefit will be more expensive than a $100,000 term life benefit. That is because term policies are temporary, while whole life covers you for your whole life. It is also because whole life can build up a cash value, while term usually does not.

Your age, where you live and your health matter too. But beyond all of this obvous stuff, you need to shop around. Life Insurance rates differ by company. We have certainly found examples of finding price differences of hundreds of dollars a year to insure the same person from the top 10 life insurers in their area.

Find Life Insurance Rates In Your Area with one short form that can save you time and money: Best Life Insurance Quotes

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