Term life insurance rates are initially lower than those for permanent life insurance, since it only provides coverage for a set period of time, and only pays benefits if the policyholder dies during that time. It can be advantageous to get this kind of life insurance when you are young. When you are young, coverage is often the most important since you have more unpaid debts, such as mortgages and car loans, and term life insurance rates are much lower for young policyholders than are permanent life insurance rates.
The main disadvantage to term life insurance rates is that they will get higher when you get older, where a permanent rate has a locked in cost for the life of the policyholder and cannot go up.
To get the best term life insurance rates, you will, of course, want to compare several options. This is because no single company offers the best term life insurance rates for everyone. You can get many free quotes online in order to compare term life insurance rates quickly and easily. There are several factors that affect what your term life insurance rates will be, including:
- Age: Term life insurance rates increase as you get older.
- Level of coverage: This should depend on the number of dependents you have, the lifestyle you want them to be able to maintain, and how high you can afford your term life insurance rates to be.
- Length of coverage: Term life insurance may be offered in terms from 5 to 30 years.
- Use of tobacco or nicotine: Someone who smokes one pack daily will pay approximately $300 more yearly in term life insurance rates than a non-smoker, all other factors being the same. Being a smoker will raise your term life insurance rates more than any other single factor.
- Weight: Someone who is 60 or 70 lbs overweight will pay approximately $150 more annually in term life insurance rates than someone at a healthy weight, all other factors being the same.
- Blood pressure and cholesterol level: You are required to take a health examination to determine what health level you are at; and the worse your health rating, the higher your term life insurance rates. There are several ways you can improve the rating you will get. Abstain from fatty foods, caffeine, alcohol, nicotine, tobacco, and strenuous exercise for at least 24 hours before the exam. Also, don’t eat right before the exam.
- Family history of disease: If you have a close family member who has died before the age of 60 from a major disease that is affected by genetics, such as cancer, you can expect your term life insurance rates to go up somewhat.
- Personal history of disease: If you have had or have a significant disease, such as cancer or diabetes, your term life insurance rates will be higher than they would otherwise be.
Some of these factors you can’t control, but others you can. If you are a smoker, quitting will not only save you substantial amounts on term life insurance rates; it will save you money on cigarettes, probably on hospital bills, and in the long run may save your life. If you get to a healthy weight, the results will be similar; money will be saved and the quality and length of life improved. But whatever your health situation, it’s important to compare many options for term life insurance in order to find the company that will give you the best term life insurance rates.
By Riannon Cutler