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How to Get the Best Life Insurance Quotes

You already purchased health, home and auto insurance policies. Everything important in your life, from your health to your biggest expenses, are safe and accounted for. However, if you're married and especially if you have children, you know that's not the case. A life insurance policy is often a necessity to provide for your spouse and kids when you no longer can, regardless of what state you live in or the kind of work you do. Getting insurance is easy, but getting a good quote can be a very difficult process.

Luckily, there are a few steps you can take to obtain a lower rate.

Staying healthy and being responsible with your money leads to better insurance rates.Staying healthy and being responsible with your money leads to better insurance rates.

How Much Do You Need?

First of all, you must consider how much coverage you'll need. In some cases, you might not need life insurance at all. If you're a healthy person with no dependents, then purchasing a life insurance policy might not be for you. However, life insurance is a must if you're in your 30s or older with children and little savings, according to Forbes. Upon your death, it will ensure your dependents can live comfortably.

There are a number of factors you must consider before selecting the amount of coverage you and your family need. Here are a few factors to examine before choosing a plan that fully covers you and protects your dependents:

Loss of Income
Do you simply need to provide a source of funds for your family to make up for a loss of income if tragedy strikes? If so, and if you do not need to deal with any other financial issues, you should figure the amount of funding they would lose out on in case of your death and purchase a term insurance policy for that amount, Kiplinger advises. 

Protecting Your Business
Owning a company is also another important consideration to take into account when deciding on a life policy. Determine which assets you need to protect. Do you need to keep your business safe from falling apart in case of your death or your loved ones shielded from estate taxes? If so, give some thought to a whole life or universal life policy. Premiums for a whole life plan are usually fixed, with policy holders making these payments every month until their deaths. The benefits of a whole life policy include increased dividends that can benefit your dependents even more. 

Meanwhile, a universal life plan gives you the benefit of having a policy that doesn't expire like a usual term life insurance agreement would, Investopedia explains. You can make changes to this type of policy by tweaking the premiums you pay over the course of the coverage and you can also save and invest with it, adding to the cash value of the plan.

Monthly Expenditures
When considering how much to spend on coverage, take your monthly expenditures and the amount of debt you have into account. Examine your check book and your monthly bank statements to get a real picture of the extent of your family's needs. Also scrutinize the amount of the payout your dependents may use for investments.

The level of debt you have also plays an important role in the size of your insurance plan. If you accrue debt other than your mortgage, you have to purchase an even larger policy to ensure your dependents aren't saddled with any leftover balances.

Savings
Besides your liabilities, give some thought to your assets. If you faithfully put aside money month to month and have little debt, you can purchase a cheap life insurance policy since your savings can go to your loved ones, Forbes reports. Also, take the retirement savings you currently have into account before choosing a policy. Your future financial planning will play a crucial role in how much coverage your family will need. The amount of money you currently have saved, any large future expenditures and debt that you carry will affect the type of life insurance policy you need, as well as how much of it you'll need to enable your dependents to live comfortably. 

How to Get a Good Quote

Once you have examined your budget and know the coverage level you require, it's time to study methods for getting a good quote. An insurance company considers many factors when deciding its rates. Age, health conditions and job circumstances are determining factors. Your life insurance agency will also need to perform medical tests on you to figure out your specific risk levels. Kiplinger reports the age and sex of an individual are two of the most important things insurers consider when formulating a quote. 

It's smarter to obtain life insurance when you're still young. Rates vary depending on your age. So, someone who has a spouse and children in their 30s can get a better life insurance quote than a person in their 50s with dependents. Insurers also take a person's sex under consideration. Women usually receive cheaper rates, since females typically live longer than males, Kiplinger notes. Insurers also examine your family's health history before giving you a quote. A person with a family history of cancer or heart disease will typically end up with a more expensive rate than someone whose parents and grandparents were free from serious illnesses.

These three aspects, obviously, cannot be helped. However, there are a few things you can take charge of to lower your rates or get a better quote: 

Be a Savvy Shopper
Many insurers weigh your data differently, Fox Business reports. Some will be more apt to charge more for someone who's a smoker or overweight than a competitor will. With this being the case, it's smart to start shopping around for a quote that not only offers you and your family the right kind of coverage but also an affordable price. Do a search or contact an insurance agent to guide you through the many different policies so you can find one that fits your needs.

If You Smoke, Stop
Improve your chances of getting a good life insurance quote by taking better care of your health. Smokers pay almost triple the rates of non-smokers, Kiplinger notes. Take control of your health by eating better and exercising more. Even people who have the occasional cigarette or cigar not only put themselves at risk for damaging their health, they also pay more for life insurance. Many insurers will ask smokers to quit and wait a year before signing them up, Bankrate reports.

Quit smoking to get a good quote.

Overweight or Obese? Shed the Pounds
It might be easier said than done, but losing pounds and maintaining a healthy weight makes a difference in getting a cheaper quote. Insurers take obesity seriously when coming up with rates, since carrying an unhealthy amount of weight is a contributing factor in developing type 2 diabetes, high blood pressure and other health complications. Kiplinger advises people to try to shed the extra pounds before purchasing a policy. However, if you already have life insurance and lose the weight, you can try to negotiate a more affordable premium. If you do happen to have diabetes, hypertension, asthma or other health issues, an insurance company will be more likely to give you a reasonable quote if you show that you regularly see a doctor to control your condition.

Consider Your Hobbies
While your health seems like a given when it comes to setting a life insurance rate, what you do in your spare time is also an important consideration. If you're a free spirit who enjoys potentially dangerous pursuits such as scuba diving, racing cars or contact sports, it could push your rate higher. Risky travel plans are also an issue. Kiplinger notes many insurers will charge more if you fly to countries and locales they deem unsafe. 

Drive Carefully
You don't just have to race cars to get a bad quote. If your driving record is spotty and filled with moving violations, it's almost guaranteed you will receive a higher rate. It pays to drive carefully and safely.

Factor in Career and Credit History
The job you do is also a big consideration for an insurance agent. If your job appears hazardous, it could affect whether you can get insurance or not. Poor credit history may also be a strike against you when trying to buy a policy, so check your credit score and ensure you pay your bills on time. 

Many factors contribute to receiving a less than ideal life insurance quote. Some of these aspects you cannot help, but shopping around and staying healthy and cautious will help you obtain a reasonable price.

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