Life Insurance Rate

Life insurance companies determine the life insurance rate for an individual by using statistics which indicate the probability that a person of a certain age will die within a given period of time. Individuals can take steps to lower their risk factors to get a cheap life insurance rate, but some risk factors are beyond their control. Age is a major factor in rating life insurance and the older a person is when he or she applies for life insurance, the higher the premium rate will be.

There are many other factors that determine your life insurance rates and each insurance company calculates rates differently. However, one conscious step consumers can take to get the best, cheap life insurance is to compare life insurance quotes online. By comparing life insurance rates for different types of policies and death benefits from multiple carriers, you can ensure you buy the most affordable, low cost life insurance available.

Smoking, Tobacco, and Alcohol

Tobacco use contributes to a number of serious health conditions and is known to shorten the life span of users. Those who use tobacco or abuse alcohol or drugs are more likely to die prematurely than those who do not. As a result, life insurance companies take your tobacco use and smoking habits into consideration.

The life insurance rate for people who use tobacco is considerably higher than for non-smokers. This is a risk factor which is within the control of the individual, and will inevitably come to light when the insurance company performs a medical exam before underwriting and issuing the policy.


Obesity is another risk factor considered by life insurance companies that can affect your life insurance rates. Morbid obesity contributes to serious health problems like diabetes, heart disease, stroke, hypertension and certain types of cancer, which can shorten an individual’s average life span and make them a high risk insurance liability to the carrier.

Applicants who do not exercise regularly are also at a greater risk for developing serious disorders and might even have pre-existing conditions. By eating a healthy, well-balanced diet and exercising regularly, individuals can increase their expected life span and lower their life insurance rate.

Another advantage of comparing life insurance quotes online is that each insurance company calculates their rates and premiums differently, and thus weighs the risk of each factor differently. By comparing life insurance rates from many companies, consumers can find the carrier that calculates favorable to their needs, and allows you to buy cheap life insurance.

Buy Life Insurance Young

Buying life insurance when you are young and healthy is especially helpful in lowering the cost of permanent policies, particularly whole or universal life insurance rates. Permanent life insurance policies remain in effect throughout the insured person’s life and usually have fixed life insurance rates.

Young adult policyholders can lock in low rates for life when they buy permanent life insurance when they are healthy. Term, or temporary, life insurance rates are also cheaper for younger consumers, but term rates will increase when a policyholder has to renew or replace a term life policy after it expires.

Discount Life Insurance Rates

While life insurance does not offer as many discounts as other types of insurance, there are some discount life insurance policies available. People who place all their insurance needs with a single insurance company usually receive a multi-policy discount on each policy they buy.

If three or more types of insurance policies (car, life, health) are purchased from one carrier, the discount can be as much as 25% on each insurance policy. There may also be a discount rate for buying life insurance for all family members from the same company.

Other Life Insurance Risk Factors – Health or Medical History

Individuals with a family medical history of heart disease or cancer and applicants with chronic health conditions like asthma will have a higher life insurance rate than policyholders with no history of family illness or health problems. New actuarial tables, used by life insurance companies to determine mortality rates, take into account new advances in medicine that extend lives.

Comparing the rates of different life insurance companies can save money since not all companies use the new or same actuarial tables, meaning each life insurance company’s rates may be different and offer you the option of cheap life insurance.

Life Insurance Quotes

Free, instant life insurance quotes are available online. Individuals only need to enter their zip code and supply some basic information like age, gender and occupation, choose the type of life insurance and death benefit they want, and we instantly provide estimates on their life insurance rates. When consumers find the best life insurance rate coupled with the best coverage and insurance company, then they are ready to buy life insurance.