Every life insurance shopper is trying to find the best policy at the lowest price. Unfortunately, too many life insurance consumers are currently paying much more for their life insurance policy than they need to. A common theme I see when talking to people about life insurance is that they only contact one or two companies, and thus end up overpaying for a policy. Countless Americans can either pay less money per month on their current policy or acquire much more coverage for the same price that they are paying now.
Let’s look at an example using State Farm. According to State Farm’s website, they insurance more cars and homes than any other insurer in the United States using numbers for 2010. They serve over 42 million auto insurance policies and 27 million fire insurance policies. Likewise, State Farm has nearly 8 million life insurance policies.
Regrettably, many State Farm customers may be overpaying for their life insurance policies as well as customers from the of the other heavily advertised insurance companies. Let’s look at example.
If you go to State Farm’s website and get a quote.
As you can see the best rate for a State Farm $500k 10 year Select Term policy for a new customer, male 42 years old, in California is $45.25 a month. (As of 11/1/2012)
Now let’s look at the quotes you can get from this site that compares the nation’s top insurers.
For a $500k 10-year term policy for a 40 year old male in California, at the best rate class, the prices range from $23 a month to $27 a month from many of the country’s top rated life insurance companies like Protective Life, SBLI, Banner, MetLife Transamerica and ING ReliaStar. (As of 11/1/2012)
What could you do with that extra money each month? This example is only for a 42 year old at the best rate class. If you are paying more than $23 a month you may be able to save even more money on your life insurance, a lot more money! Think of how that extra money will add up each month and over the life of the policy. That is thousands of dollars in savings for the same coverage.
While State Farm may be a great company, I do recommended that everyone look at what rates are available for you on the open market. Please compare rates from multiple companies not just one. As you can see by just using this quote comparison software, you could potentially save hundreds, even thousands of dollars or more for the same policy!
*The information in this article is for informational purposes only and is not a guarantee of rates and insurability. Rates and eligibly are subject to the underwriting guidelines of the insurance companies and state in which you live. Please visit the Disclaimer tab for more information.