How Comparing Life Insurance Quotes Can Trim Down Your Costs

Last Updated on September 17, 2020 by Andrew Lee

Arguably the biggest priority you have when purchasing life insurance is to get one that sufficiently meets your entire family’s current and future financial needs. And because the cost of living varies from one state to another, meaning that consumers in Maine may have lower living expenses from those in California, you should also base your decision on this particular aspect.

One thing remains certain though: wherever in the country you and your loved ones reside in, you should know what you can do to obtain sufficient coverage without sacrificing your budget. And one of these is to compare life insurance quotes.

How doing so can help lower costs

Quote, the comparison is actually the only guaranteed way you can determine which offers in the market fall within the affordable end, and those that cost a little too much. If you only learn the details of a single plan, you don’t have anything to compare it with; thus, you don’t really know whether or not it’s one of the most affordable.

On the other hand, obtaining quotes from different insurers will give you a much clearer idea of the premiums average you can expect. This can then serve as your guide to establish the lower and higher end of the insurance premiums spectrum.

Comparison: More than just helping you save on premiums

There’s a lot more to quote comparison than just knowing which offers you can afford easily. It also helps create a clearer picture of which plans will have the most and best use for you.

For instance, one insurance company charges a healthy, non-smoking 30-year old male in Ohio $20 a month for a policy with $200,000 value. However, another company in your state may have a policy that has the same features and benefits, but for only $18 a month. The $2 difference may seem small for you. But consider this: $2 a month times 12 months in a year, multiplied by, say, 30 years. Opting for the $18 plan will save you somewhere around $720.

You will also stumble upon policies that have the same monthly premiums and face value but have different payout options. Many insurers follow the default payout method, which is in the form of a lump sum. However, some companies have already started allowing their policyholders to become their own beneficiaries, permitting them to withdraw against its face value. The insured can then use the money for personal expenses or other necessary expenditures.

The right way to compare

One thing to keep in mind as you go about comparing offers and estimates is to compare similarly-structured plans. Here are some tips on how to get it right:

  • Before you start, make a note of the things you are looking for and what you can afford. For example, you want a $200,000 policy value and you won’t have problems paying a monthly premium of $20.
  • Make sure you also factor in your health and lifestyle habits, particularly if you don’t smoke and you are within normal weight.
  • Using these pieces of information, obtain quotes from different companies using the same health profile (e.g. 30 years old, male, non-smoker, relatively good health, normal weight).
  • Once you have the estimates, you can start reviewing the premiums and key features of the policy.

A Final Friendly Reminder

Always remember that insurance companies need all the business they can get, so they come up with different ways to attract consumers. Keep an eye out for companies that offer money-saving programs, such as discounts for bumping up coverage to a slightly higher amount (from $200,000 to $250,000 or from $450,000 to $500,000). This way, you can get more coverage without having to worry about a considerable increase in your monthly premiums. To learn more about life insurance, read this.