Life insurance rates

Life insurance rates are based on a number of factors, including the type of policy purchased (Term Life, Group Life, Whole Life, Universal Life, Variable Life), the age of the person insured, and health of the person insured. Even with all of those variables, there are several things everyone can do to reduce the cost of their life insurance. The classic and best reason for buying life insurance is to protect your family from financial instability in the event of your premature death.


Start a life insurance program when you're young. Every adult should consider starting a life insurance program while young and in good health. The most important factor in determining life insurance premium rates is the age of the person to be insured. 

The second most important factor is the health of the person to be insured. Don't use tobacco. If you are a smoker, you should quit. Most insurance companies have several tiers of rates, including a lower tier for non-smokers and a higher tier for smokers. Many companies will offer a lower tier rate to former smokers who are tobacco free for 12, 24, or 36 months or more. If you purchased life insurance while you were a smoker and are now smoke-free, contact your life insurance company or shop around to see if you are now eligible for lower rates.

Take care of yourself. Eat healthily, limit alcohol consumption, exercise, and watch your weight. Not only will you feel better, but you'll also probably lower your life insurance rates.

Be prepared for a medical exam. Depending on your age and the amount of insurance you are applying for, some insurance applications may require you to give a blood sample. Be sure to fast for twelve hours before this test to get accurate results.

Comparison shop. Prices for the same life insurance coverage can vary greatly. Compare several insurance plans from different insurance companies and agents before making a selection. Wells Fargo offers an online term life insurance shopping service that compares rates from some of the nation's top insurance providers.

Take advantage of Group Insurance plans at work. Many employers offer Group Life insurance coverage as an optional employee benefit. Group insurance plans generally provide term insurance coverage at very low rates. Employees are often eligible for group life insurance coverage regardless of health. Family riders providing coverage for your spouse and children can often be added to a Group Life plan at a very low cost.

Update your coverage according to life changes. Create a financial plan and be sure the life insurance you have meets your current needs and financial obligations as you get married, purchase a home, and have children. If you marry or divorce, make sure you review and change the beneficiary on all of your life insurance, if necessary.
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