What to consider when searching for life insurance quotes

Each life insurance policy has these four main, important parts to consider when seeking life insurance quotes: the premium (or amount to be paid in set payments), the death benefit (amount to be paid to beneficiaries after death of the policyholder), the term (amount of time the policy is contracted for) and the actual cash value of the policy itself.

The premium

The best place to start when searching for life insurance quotes is with the premium. Everyone wants to know how much they will pay. Everyone wants to find the cheapest price for the best value. Insurance premiums vary for every person.

Risk profile

When seeking life insurance quotes, first the insurance company will build a risk profile for you. This risk profile is created by looking at factors such as your age, gender, lifestyle, health problems and general health, as well as the amount of coverage you are seeking. Age is one of the most important details the insurance company uses to determine your risk. Someone who is much older is more likely to have the policy claimed sooner rather than later. Women tend to live longer than men and are more likely to claim life insurance policies.


When assessing your life insurance quotes, your insurer will look at your lifestyle to determine specific risks. Smokers, those who are prone to drink alcohol, expose themselves to risky hobbies or potentially harmful situations most certainly attract higher premiums. People with existing health problems or a family history of serious medical conditions are also higher risks of a claim being submitted sooner rather than later. The amount of coverage you are seeking for your policy directly relates to the premium you will pay. The more the insurer will be expected to pay out for your claim, the higher your premium usually is.

The death benefit

The amount paid to the beneficiary when the policyholder dies is called the death benefit or the survivor benefit. This amount varies depending on the terms of the policy. It is important to know the specific terms of the payout when searching for life insurance quotes. Most commonly, the death benefit is a large lump sum paid to the beneficiary. Amounts can be determined by premiums paid, the amount of time the policy was held, percentages of the policyholder’s pension and the specific terms of the life insurance policy the annuitant held at the time of their death.

The term

When choosing between different life insurance quotes, the term is often overlooked. The term refers to the period of time the policy covers. The death benefit will only be paid if the insured person dies within the specified time that the policy is active. This term is always specified within the life insurance contract itself and usually does not exceed a time period when the policyholder would exceed 100 years of age (120 in some cases).

The actual cash value

The cash value of an insurance policy is more commonly used in automobile or homeowner’s insurance, but is still a factor to consider when comparing life insurance quotes. Some life insurance policies build cash value over time. These such policies have higher premiums to pay, but do provide the option to borrow some of the cash that has accrued later on. So when you are searching for life insurance quotes, most importantly, do not forget to read the fine print.