Life Insurance Rates and Quotes Key Terms

Understand these important life insurance rates and quotes key termsto make better insurance decisions

Life insurance rates and quotes are important to understand as you research life insurance for yourself or for a loved one. As life insurance rates vary due to different factors, having a general knowledge of rates and quotes is essential to ensure you receive the best rates for your needs.

Whether you need term life insurance or whole life insurance, prefer an adjustable premium or would just like a life insurance quote, become familiar with these life insurance rates and quotes key terms to make the best decisions on life insurance for your specific needs and lifestyle.

 

Term life insurance

Term life insurance provides monetary protection for the named beneficiary if the owner of the term life insurance policy expires within a specific time frame or term. If the owner of the policy outlives the set term, the policy is declared null and void. Term life insurance policies are a cheaper alternative to whole life insurance policies.
Try: Read more in-depth information on term life insurance at State Farm.

Whole or "permanent" life insurance

Whole or "permanent" life insurance policies remain active for life. A more expensive alternative to term life insurance, whole life insurance policies can be cashed in while term life insurance policies simply expire.
Try: New York Life offers extensive information about whole life insurance policies.

Adjustable or "variable" premiums

Adjustable or "variable" premiums are insurance premiums that change based on how the insurance market performs at a given time. Applicable to term life insurance policies, the amount of a premium can increase if the insurance policy costs more to maintain than originally thought. The premium can decrease if investments in the insurance company as a whole increase.
Try: Oliver Insurance offers more information on adjustable premiums and other key terms associated with insurance policies.

Life insurance quote

A life insurance quote is an estimate of the premium you can expect to pay for specific types of life insurance. Quotes are based on several criteria such as the type of insurance you need, the coverage amount desired, your age, social habits and your overall health.
Try: Visit LifeInsure.com to view the criteria needed for quotes on several types of life insurance policies, as well as advice on how to compare life insurance rates and quotes.

Life insurance rates database

A life insurance rates database is a third-party database not affiliated with any insurance company. The database contains a collection of information on various life insurance companies and can rank the best life insurance company options based on specific criteria.
Try: BudgetLife.com offers an example of a life insurance rates database.

Preferred rates vs. standard rates

Preferred life insurance rates and standard life insurance rates are based on factors such as overall health, place of residence and occupation. Preferred life insurance rates are more affordable premiums for those deemed to be in better shape and whose lifestyle choice poses less risk for death or serious injury. Standard life insurance rates are offered to applicants whose health, residence or occupation may pose greater risk for premature death.
Try: First Quote offers a comparison of the factors that affect preferred versus standard life insurance rates.

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