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Know The Truth About Discount Life Insurance

Discount Life Insurance Prices & Quotes-Get The Lowest Rates

Are you looking for discount life insurance?  Great, you came to the right place.  With so many life insurance companies on the internet competing for your business, finding the right one can be overwhelming.  Some companies you may have heard of any many more you haven’t.

Difference in prices

Every company will offer you a different price quote.  The difference can be minimal to significant, depending on which company you choose.  When you add up the savings, month after month-year after year- for the duration of the policy, you can save thousands of dollars or more just by choosing the right company.

Sample: 40-year old man, excellent health, Preferred Plus rate class $1,000,000-10 year term:

Company                     Price           A.M. Best Rating

SBLI                            $30.06                  A+

Transamerica             $35.88                  A+

AIG                              $44.46                  A

Primerica                    $51.78                  A+ 

State Farm                  $63.55                 A++

As you can see the difference in price for the same policy is over 100%!  This is the same $1,000,000 10 year level term policy!  You can have double the coverage or pay half, just by shopping and comparing rate quotes!

The only way to assure you are receiving the lowest available rate on life insurance is to shop around.  Online quotes now allow the shopper to compare the rates instantly from the best life insurance companies.  When you choose a top rated company, you have the peace of mind knowing that the company will be there and pay out the money if you were to pass.

Captive agents

Many of the popular companies you see on TV are not competitive when it comes to life insurance.  Many of these companies, for example-State Farm agents- are what are called captive.  This means they only represent that one company.   State Farm agents and other captive life insurance agents’ rates are often not competitive with the other top companies that specialize in life insurance.  You don’t want to well overpay for insurance just because you have met the agent face to face.

Are the price quotes too high?

Shop around and compare rates.  Every company is going quote you a different price.  Also, you can lower the term or reduce the face amount if necessary.

The truth about discount life insurance

The only way to get the lowest rate on life insurance is to compare rates from multiple companies or use a broker who can do this for you.  What many people are not aware of is that life insurance rates are the same everywhere you go for a particular company.  Life insurance rate sheets are sent to each state insurance commissioner’s office to be approved.  So if you call around for a quote from say ING, the rate will be the same with every agent you call.  You can however, receive a lower rate by choosing the right company that will give you the best rate not only on price but on favorable underwriting for your situation.

The other way to receive a discount on life insurance is to pay annually.  If you pay annually instead of monthly, often you will save quite a bit of money-depending on the company.  Also, a lot of people like to put the first annual payment on their credit card for the miles or reward points.

Direct to carrier vs. using an agent/broker

Unlike auto insurance purchasing life insurance is different in that you cannot just call up the life insurance company and purchase a policy directly in most cases, like you can with a Progressive or Geico.  Most large life insurance companies like; ING, Transamerica, Prudential, Banner, and most others will give you the phone # to the nearest agent if you need a quote.  That is why choosing a knowledgeable agent/ broker will find you the lowest price and it doesn’t cost you any more money.  It actually will save you money because they will weed out the wrong companies.

Also, when you have an agent who is your advocate, working on your behalf and not the insurance companies, you may be able to receive a better rate if it is justified.  I had multiple occasions where the rate came back higher than the client think he deserved.  After I went back to the insurance company and explained why the client deserved a better rate- they did change it.  This doesn’t happen all the time, but it does happen when warranted.


The best way to find the lowest price quote on life insurance is to shop around and compare prices.  Every company will offer you a different rate for the same policy.  Make sure you work with an unbiased and knowledge agent/broker who will be your advocate.  Also, if you are looking an additional discount on your life insurance, compare the annual vs. the monthly payment for even more of a cost savings.

Get the lowest rates-compare now

*Rates as of 3/25/2013. The information in this post 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.