Term Life Insurance - Understanding How Rates Are Calculated

Why are so many insurance companies' prices so different when you start comparing quotes on term life insurance? Many people receive a bit of a shock when they start looking at quotes. They will see a wide range of premium prices for what they think is the same insurance amounts.

The differences can be very significant. Some policies cost hundreds of dollars more every year when compared to others. Why are they so different? That is something you need to understand when looking for term life.

All life insurance companies base their quotes on how risky an insurance policy may be. Some people think a company looks at them as individuals and makes their decision on that person's individual characteristics. However, that is not the case. Life insurance companies look at a person as part of a group.

That group consists of people who are the same age and gender and who have the same physical characteristics and family history. That group's statistics on life expectancy and death rate will determine how much any person in that group pays for a policy. When comparing quotes on term insurance, you need to understand this fact.

Insurance companies use the same statistics across the board. The difference in premiums comes from how the insurance companies use that data in calculating their risk. One insurance company may rate a total non-smoker as a lower risk that a former smoker who quit two years ago.

Another company may rate them the same. That difference in rating would help explain the differences you would see between the quotes from those two companies. When comparing quotes, you need to understand how your current and past behaviors work in the process.

Another factor in determining premium prices is competition. Insurance companies are in the business to make money. In specific demographic groups, they may be competing against other companies more heavily than in other groups. People in their 20s and 30s quite often take out policies for the first time.

This makes it a very competitive age group. People in this group may see some companies offering long-term policies at very competitive rates. When comparing quotes, you can take advantage of the competition among insurance companies. Saving money is a good thing for most people when they start looking at life insurance. It can add up significantly over time.

By: Mark Prip

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Cheap Term Life Insurance - How to Get it Fast!

Have you been looking for cheap term life insurance, but haven't been sure where to go to find it? I know the feeling, and I can tell you thousands of other people will agree that you are not alone. The good news is that it isn't nearly as difficult as many people think to find a good, affordable term life policy.

First, it's important to understand some important factors. When you seek life insurance, you will go through a process that determines your insurability. This process involves answering a number of questions designed to determine your rate based on multiple factors. Your medical history, whether you smoke or not, drive a motorcycle, or participate in 'extreme' sports activities will all effect your potential rate in different ways. So how can you get cheap term life insurance?

No the answer isn't to lie on your application. In fact, if you lie at any point on your application simply to get cheap term life insurance, you will likely get denied coverage, or worse, your family will be denied payout if it is determined that you lied on your application.

No, the best way to find cheap term life insurance is to do your homework and find the right company. There are a ton of insurance companies out there, and not all are created equal. You want to find a company that has a good credit rating as well as affordable policies. You also need to determine the amount of coverage you need. Many people make the mistake of either choosing too little or not enough coverage. But remember, coverage is better than no coverage. In fact, many companies will issue term policies of $250,000-$500,000 for less than $20 per month, depending on your age and contributing factors. Additionally, many of these policies require only a minor or no medical examination at all.

So the biggest key to finding a cheap term life insurance policy is finding the right company. But how do you do that? Simple, you let a professional do it for you. By using a life insurance search engine such as Termfinder, you take all the guesswork out of it.

You enter your information, and desired coverage, and they find you a ton of quotes instantly so you can compare. You'll get quotes from all the major insurance companies too. The form is super short and quick, and you can use it to get an idea of what it would take to get a policy, or go through the whole process and quickly get a cheap term life policy in a matter of minutes.

By: Richard A. Gilmore

Life insurance rates change all the time, and the longer you wait, the higher they can go. You can't afford to have your family unprotected. So go to http://www.freetermlifequotes.info to get super fast cheap term life insurance quotes before your rates go up!