Benefits of Comparing Free Life Insurance Quotes

There are many reasons why people seek to purchase life insurance. No matter the reason, however, life insurance can be an important way to...
a man and a woman sitting at a table

There are many reasons why people seek to purchase life insurance. No matter the reason, however, life insurance can be an important way to protect your loved ones financially if something happens to you. And, unlike other types of insurance, life insurance is designed to look out for your loved ones by providing a financial payout, or death benefit, in the event of the unexpected. This can help to cover expenses like funeral costs, mortgage payments, credit card debt, and even provide supplemental income.

However, depending on your situation, you may find that life insurance premiums are expensive. Because premiums are set based on factors specific to your situation, you might have to pay higher rates for a policy. The best way to find quality life insurance with affordable rates is to shop around for free life insurance quotes. Let’s take a look at some of the benefits of getting several free quotes for life insurance.

Shop around for premium rates.


It is important that you shop around to get the best rates when it comes to life insurance. Rates can vary quite a bit from one company to the next, so it is important to compare policies and rates before you decide on a policy. You may also be able to get discounts on your life insurance policy from certain insurers based on qualifying factors. The average life insurance premium for a healthy 40-year-old buying a term life policy for $500,000 is around $30 a month. Based on several factors, however, you might have to pay more than the average. Getting several free insurance quotes online will allow you to find the best policy and premium rates.

Compare eligibility and risk factors.


Life insurance companies take into account a policyholder’s risk when setting premiums. This is because the riskier you are, the more likely it is that you’ll make a claim on your policy. There are a number of factors that insurance companies look at when assessing risk, including things like your age, gender, medical history, and lifestyle choices. Each of these factors can have a significant impact on your perceived risk as a policyholder. In general, the younger and healthier you are, the lower your life insurance premium will be. However, if you are older or have a chronic illness, you will be placed into a higher risk category and have a larger premium. Additionally, tobacco users usually pay increased rates due to the associated health risks.

If you fall into a higher risk category, you may have very high rates, or you may not even qualify for coverage with some carriers. When you shop around for free quotes, however, you are playing the field. There is no set standard in the insurance industry for weighing risk factors. As a result, you can find varying quotes and rates from different insurance companies. No matter what your situation is or what risk factors you have, you can find the right policy for your life insurance needs.

Review insurance companies.


When you are looking to purchase a life insurance policy, it is important that you select a reputable and reliable insurer. When you get free quotes online, you’ll be able to research the different companies and their ratings before making a decision. The Better Business Bureau is a good place to start your research. The BBB rates companies on a scale from A+ to F based on their complaint history. You can also check out consumer reports to read customer service ratings of different life insurance companies.

Another important factor to consider is the financial stability of the insurer. You can check out the financial stability of an insurer by looking at their ratings from independent rating agencies. When you sign up for insurance, you are also entering into a relationship with your insurer. Comparing quotes and service ratings from different companies will help you pick an insurer you can trust and feel comfortable with.

Gretchen Crawford is a graduate of Georgetown University in Washington, DC, USA, and currently resides in Tulsa. She is an editor at Urban Tulsa.