Competitive Term Life Insurance

by Jeff Rose on May 2, 2012 · 17 comments

Competitive Term Life InsuranceThere has never been a better time to buy term life insurance than now.

Term life insurance is already the cheapest form of life insurance available.

You are sure to get the best rates with over 115 life insurance companies competing for your business.

Is the lowest premium my best choice?

The answer is, not always. Some companies may offer you a lower premium, but may not be financially stable as a company.

Choosing the Best Insurance Companies

A good way to determine how good the company is, is to look at their A.M. Best ratings.A.M. Best provides a way for each company to see just where they rank with consumers and helps them know just what they have to do to correct their mistakes. Other ratings agencies include Moody’s, S&P and Weiss.    While it doesn’t hurt to double check the ratings of each agency, A.M. is by far the most recognized of the bunch.

Note: Look here for a review of the best life insurance companies.

How Competitive are Life Insurance Companies?

Most larger life insurance companies offer very competitive rates. This is due to in part because of their mortality tables. Mortality tables are used to determine how long the average person is going to live, based off of age, weight, height, medical conditions, and habits they may have.

Larger companies have an advantage over smaller companies, because they insure more people. This allows them to have a more accurate mortality table.

Don’t count the smaller companies out!

Some of the smaller companies are also well run and have rates worth viewing.  While many have heard of ING, MetLife, and American General, there are smaller insurance companies like Banner Life that offer very competitive prices on their term life quotes.

I actually was able to save on my 30 year term life policy by going through Banner Life. And my previous policies were with much larger recognized with insurance such as MetLife, ING Reliastar, and TransAmerica.

Always research the company you are thinking about taking a policy from. Be sure that they have a good A.M. Best rating as well as good customer reviews. Some companies may have a lower premium but are hard to deal with when a policy comes due.

Don’t forget to check out our FREE Term Life Insurance Quoter to make sure you can get the best rates available. If you have any questions make sure to give us a call where one of our agents will be able to assist you.

{ 17 comments… read them below or add one }

Herbert V. May 12, 2012 at 1:21 am

I’m a 55 year old man with two grand-children. I wish someone had told me this before I turned 30 years old.

Great article Jeff!


Jeff Rose May 14, 2012 at 2:56 pm

@ Herbert You’re welcome!


Cody R. May 12, 2012 at 11:42 pm

How do we avoid insurance scams like “twisting”and “churning”? I have purposely remained insurance-free because of all the scams and broken promises…


Jeff Rose May 14, 2012 at 2:58 pm

@ Cody For term life insurance, it’s hard to churn. If you buy a 30 year term policy then you’ll buy it just once. The only way you may have to buy it again is if you needed to increase your coverage (like I did).


Cody R. May 12, 2012 at 11:49 pm

Herbert, I read somewhere that some scammers target church members and call their policies religious based names to bring in members!


Herbert May 12, 2012 at 11:53 pm

That may be true but there are more honest insurance agencies than bad. That doesn’t change my mind about me being behind the curve ball on having myself/family insured througout the years.

Use some common sense and listen to your instincts when choosing an agency. There will always be someone trying to take your hard earned money!


Brandon D. May 13, 2012 at 12:02 am

Hi jeff, what if buy a policy and want to opt out of it later? Will I be charged a penalty of some sort?


Jeff Rose May 14, 2012 at 2:59 pm

@ Brandon Nope, there is no penalty in cancelling your term life insurance policy.

Let’s say you take a 30 year term policy and decide after 10 years that you don’t need or want it any more, then you just stop paying on it. Yes, you would forfeit all the premiums you paid into it, but that’s all you would lose.


Lydia May 13, 2012 at 5:42 am

Jeff what companies do you represent?


Jeff Rose May 14, 2012 at 3:01 pm

@ Lydia

I represent all the major carriers and some of them you may now recognize. Some of these would include Metlife, Prudential, Nationwide, ING, American General, Banner Life, etc.


Kiafa M May 13, 2012 at 5:55 am

What’s typically covered on the policy should I become disabled?


Jeff Rose May 14, 2012 at 3:03 pm

@ Kiafa

Most life insurance policies will not cover disability. You would need to look into getting a separate long term disability policy. Here’s more information:


Robert K May 13, 2012 at 5:18 pm

A lot has been said about how important it is to obtain a policy for your family but what’s the most cost effective way to pay my premium? Will I save if I pay annually or quarterly rather than monthly?


Sharon Lexington May 13, 2012 at 5:35 pm

Yes, sometimes the smaller companies are just as competitive as the larger ones. However many of them have more fees associated with them. What happens if miss a payment and my insurance lapse? What happens if I decide to go with another company?


Jeff Rose May 14, 2012 at 3:07 pm

@ Sharon

Unfortunately, I found this out the hard way. You can read more about it here:

The short answer is that you have to reapply for reinstatement and then you just pay the missed premium. The whole process ended up being much simpler than I had expected.


Josh Epson May 13, 2012 at 5:42 pm

How far into my policy am I allowed to convert it? Will I be hit with penalties?


Jeff Rose May 14, 2012 at 3:03 pm

@ Josh

Most policies don’t convert until the term is nearly complete. No, there will be no penalties involved.


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