Comparing prices for life insurance can feel confusing, especially with so many policy types, coverage amounts, and insurers offering different rates. But once you understand what impacts pricing and how to compare quotes correctly, the process becomes straightforward—and you can save a significant amount of money while still getting the protection your family needs. This guide walks you through how to compare life insurance prices the right way.
Understand What Affects Life Insurance Prices
Before comparing quotes, it helps to know the main factors insurers use to determine your rate:
- Age
- Gender
- Health history
- Current health (height/weight, blood pressure, labs)
- Smoking status
- Family medical history
- Occupation risk level
- Lifestyle factors (hobbies, travel, alcohol use)
- Coverage amount and term length
- Policy type (term vs. whole life)
Understanding these variables helps you interpret why one company may quote you a different rate than another.
Choose the Type of Policy Before Comparing Prices
You can only compare prices accurately if you’re looking at the same type of life insurance policy.
Term life insurance
- Most affordable option
- Covers you for 10, 20, or 30 years
- Best for temporary needs (income replacement, mortgage protection)
Whole life insurance
- More expensive
- Covers you for life
- Builds cash value
- Often used for long-term planning or estate purposes
No-exam or simplified issue policies
- Faster approval
- Higher premiums
- Good for those with health issues or urgent coverage needs
Decide which policy type fits your goals before collecting quotes.
Match Coverage Amounts Across All Quotes
Life insurance quotes must be identical to compare fairly. Make sure each company quotes the same:
- Coverage amount (e.g., $250,000, $500,000, $1M)
- Term length (10, 20, 30 years)
- Policy type (term vs. whole life)
- Riders (e.g., accelerated death benefit, child rider, waiver of premium)
Even small differences in coverage can lead to big differences in price.
Get Quotes from a Mix of Insurer Types
To get a complete view of pricing, compare:
Traditional insurers
Well-known companies with strong financial ratings.
Online or digital-first insurers
Often offer fast quotes and competitive rates.
Independent brokers
Can show you quotes from multiple insurers at once.
Comparing at least three carriers gives you a much clearer idea of price averages.
Review Health Class Ratings
Each quote will include a health class, which affects your premium.
Common classes include:
- Preferred Plus
- Preferred
- Standard Plus
- Standard
- Substandard (various levels)
Your health class determines your final premium more than anything else besides age.
If your quotes differ a lot, the companies may be rating you in different health classes.
Understand Optional Riders and How They Affect Price
Riders can increase your cost—but may be worth it depending on your situation.
Popular riders include:
- Accelerated death benefit (usually included at no cost)
- Child rider
- Waiver of premium
- Accidental death benefit
- Long-term care rider
- Return of premium (ROP)
When comparing quotes, make sure riders match across policies.
Look at Total Cost, Not Just Monthly Premium
Some insurers show:
- Monthly premiums
- Annual premiums (often cheaper)
- Multi-year guaranteed premium schedules
- Potential cash value projections (for whole life)
When comparing prices:
- Prioritize level premiums that don’t change
- Review the annual cost for the most accurate comparison
- Avoid teaser rates that increase over time (common in some whole life or universal life products)
Evaluate the Company Behind the Price
A low price doesn’t mean much if the insurer lacks stability or good customer service.
Check:
- Financial strength ratings (A.M. Best, Moody’s, S&P)
- Claims reputation
- Customer reviews
- History and reliability
- Transparency of underwriting guidelines
Life insurance is a long-term commitment—choose a trustworthy company.
Consider a Medical Exam If You Want the Best Price
Policies with medical exams generally offer lower premiums because the insurer has more health information.
You may benefit from an exam if:
- You’re healthy
- You take no—or few—medications
- You want high coverage amounts
- You want the lowest possible price
No-exam policies are convenient but more expensive.
Reevaluate Quotes Every Few Years
Life changes—and so should your coverage.
Review your quotes if:
- You get married
- You have a child
- You buy a home
- Your income increases
- Your health improves
- You quit smoking
- You refinance your mortgage
You may qualify for better rates as your circumstances change.