Life Insurance Ratings Explained

Life insurance rates vary depending on the amount of the death benefits as well as your current health history and type of policy that you choose. Knowing how to choose the right policy to suit your needs and your budget can often be confusing. Learn what the different polices include to understand the difference in life insurance rates.

Term Life or Whole Life Insurance Policies

• The two main type of life insurance policies are whole life and term life. Term life policies are good for a set term and then expire after that timeframe. They are usually good for a period of between five and 15 years. After this time frame has passed your situation is reevaluated and your rates may increase.

• Whole life insurance policies are higher than term life policies initially; however, they do not need to be renewed. Whole life policies are determined by your current health as well as any risk factors you may have such as being a smoker. The amount of the death benefits that you choose also helps to determine the rate you pay for a whole life insurance policy.
  
  

Burial & Funeral Services Only

If you cannot afford to pay expensive life insurance rates, you should look into a life insurance policy that only covers the cost of your funeral and burial services. These type of policies let you decide which funeral home you would like to use as well as choose the type of casket that you will be buried in. Burial only plans are often less inexpensive than term life or whole life insurance rates.

Amount of Death Benefits

The amount of death benefits that you need your spouse other beneficiary to receive when you pass on has a great deal to do with the amount of life insurance rates that you are going to pay. A higher death amount means that you pay more money for your life insurance payments. The lower the amount of death benefits you require, the lower your insurance rates will be. 

Waivers

There are many different waivers that are often optional with your life insurance policy such as a loss of wages waiver which pays your premiums for you in the case that you become inured or disabled and cannot afford to make your payments. There are also waivers for accidental death that provides your family with an extra lump sum payment in the case of your death if it was ruled accidental.