How Do I Comparison Shop Life Insurance?


You’ve probably heard it before: In order to get the best insurance deals, you have to shop around. Comparison shopping is a wise approach if you want the lowest rates possible. 

However, comparison shopping for life insurance is a little different from comparison shopping other products and services. There is also a better way to do it than by randomly consulting a few of the almost 800 life insurance providers in the United States. 

Here is a look at the most important information you need to successfully comparison shop life insurance. 

Life insurance rates are fixed. 

Life insurance rates do not vary based on who you use to shop rates. Instead, life insurance companies create rate classes based on factors such as the applicant’s health condition, age, and risk factors. 

The prices for specific rate classes can vary among providers. However, for each individual insurance carrier, each of these rate classes comes with a fixed rate for the applicant. 

This rate stays the same no matter how you shop for it. In one way, then, comparison shopping does not get you lower rates for your life insurance policy. 

Life insurance classifications are not fixed. 

Fixed rates, however, do not mean that shopping around is useless. There are many other factors that can influence the rate you pay. 

In particular, your rate class can vary among insurance providers. For example, one provider may not cover individuals with your pre-existing condition, but another provider may. Certain risk factors may place you in one rate class for one provider and in another rate class for another provider. 

In order to get the best life insurance rates possible, you need to find the insurance provider who is willing to put you into the most favorable rate class possible. 

This means providing detailed health information that paints a complete picture of your current condition and lifestyle. It also means finding an insurance company that is sympathetic toward any pre-existing conditions or risk factors you have. 

Life insurance rate classes are not the only consideration. 

Rate classes are not the only drivers of policy prices for life insurance. The type of policy you purchase can also make a difference. 

There are a number of elements of the policy itself that can impact the price you pay. Consider these policy features that can raise or lower your rate:

  • Term vs. Whole Life Insurance
  • Coverage Amount
  • Length of Term (e.g. 10, 20, 30 years)

You need to determine which policy will best serve your needs. You may not need a high-coverage, long-term policy. A smaller policy for a shorter term may suit your needs and cost you less. 

Shopping around can help you to see what policy options are available and help you determine exactly what you need in your life insurance coverage so you can get the right coverage at the lowest price. 

Professional assistance can lower your rates. 

In order to get the lowest possible insurance rate, you need to do the following: 

  • Receive the best possible rate classification for your circumstances
  • Determine your life insurance needs
  • Identify a provider who can deliver at the most favorable rates

You can shop around by consulting different insurance carriers yourself. However, you may find yourself undergoing multiple health assessments, trying to navigate confusing rate classifications, and comparing policies that are not the same. 

In order to accomplish all three of these tasks successfully, you may need some professional assistance. 

This is where an independent insurance agency can help. With access to dozens of insurance carriers, they can shop around FOR you to identify the carrier who can offer you the most favorable policy and, therefore, the lowest rates. 

In addition, they can help you to navigate the often confusing field of life insurance by assisting you with your health assessment (Or even finding you a provider who does not require one), walking you through your policy options, identifying any discounts for which you are eligible, and locating carriers willing to cover you despite pre-existing conditions or other issues. 

With their assistance, you can get a lower life insurance rate than if you shopped around by yourself, all with less time and effort spent on your part. 
Here at Generations Insurance Partners, we stand ready to help you understand, navigate, and succeed at obtaining the right life insurance policy for you. Because we are not limited to just one insurance provider, we are free to work for you in order to get you the best rates possible. Let us know how we can help.