If you are at the stage when you need to be looking at life insurance rates, then you’ve probably already realized that not all life insurance quotes are equal. Compare two insurance policies that look more or less the same and you will soon see that the life insurance costs you are being given could actually be quite different.

While, it’s unlikely that two people will be given the same life insurance rates for the same policy, it can be easier to get lower life insurance costs if you take some time to understand how life insurance quotes are put together by insurers.

What affects life insurance costs?

There are various factors that can increase (or decrease) the life insurance costs. These include:

• Types of policy: The type of policy you take out will have a bearing on the price you pay. A whole of life policy, for example, will be more expensive than a term policy. This is based on insurer risk; an insurer charges more for whole of life coverage as it knows that it will have to make a payment at some point, and less for term coverage as there is a chance that it’ll never have to pay out.
  
  
• Coverage levels: The amount of money you insure your life for will play a part here. The higher the coverage, the more you’ll pay.
  
  
• Coverage features: If you add extra features on to your life insurance policy such as critical or terminal illness coverage, for example, then your life insurance rates will increase.
  
  
• You: Your age, lifestyle, and sex will affect life insurance costs. In general terms, the younger you are, the less of a risk there is that you’ll die early. This risk increases as you get older so costs will rise. If you have an unhealthy lifestyle (for example, if you smoke) then you’ll pay more.
  
  
• Existing medical conditions: If you have an existing medical condition then you could end up being quoted higher life insurance quotes for your life insurance coverage as there is a higher risk that you will die early. The healthier you are, the cheaper it will be!

Getting cheaper life insurance costs

Once you understand the way that life insurance rates are worked out, you can make an effort to lower costs. For example, your life insurance quotes may be lowered if you:

• Opt for a cheaper term policy rather than a whole of life one.
  
  
• Only take on coverage levels that you need rather than over-insuring.  Think hard about the features you need and only buy coverage that will be useful to you and your family.
  
  
• Change your lifestyle.  A healthier lifestyle (for example, quitting smoking or drinking) will have a positive effect on your life insurance costs.

Be sure to talk to specialist insurance providers if you have pre-existing medical conditions that could affect your life insurance rates. They may be able to get you cheaper life insurance quotes.

Finally, remember that the easiest way to cheaper life insurance costs is to shop around and to compare quotes and policies. It may take a little more time, but it could also save you a little more money!

Compare life insurance providers