What is the Average Cost of Term Life Insurance?

If you're shopping for term life insurance, you may be asking yourself this question.

There is no one right answer for the average cost of term life insurance, because the prices vary by person, age, gender, insurance company, policy type, amount of coverage, and several other factors used to determine your price for life insurance.

In 2004, according to LIMRA International, the average adult with life insurance age 25-34 had only $145,000, and the average adult age 35-44 had only $323,000 of insurance on his or her life. As the term "average" implies, many people had smaller amounts of insurance-and one in four adults have no life insurance at all.

A study performed in 2007 by the Insurance Information Institute stated Since 2000, term insurance rates dropped about 4 percent per year on average, following an average annual 15 percent drop from 1994-1999. The effect of these drops drove the lowest rates available in 2007 to less than half of what they had been a dozen years earlier.

In addition, rates for term insurance may vary by up to 50%, or more between insurance companies. That's why it makes sense to shop and compare prices for term life insurance from multiple companies when searching for the best price on your life insurance policy.

Life insurance rates are dropping because death rates for the 25-44 age group-the primary age range for purchasing life insurance-have decreased significantly over the past 10 years (National Vital Statistics Reports).

When you consider how term life insurance rates have decreased and combine that with potential savings you may achieve by comparing multiple rate quotes from several insurers, you may save money by choosing term life insurance.

Term Life Insurance Benefits:

• Affordable - Rates for term life insurance are at 10 year lows.
• Flexible - Choose from 10, 15, 20, or 30 year terms.
• Low Cost - Term life insurance is less expensive than permanent life insurance.
  
• Guaranteed Rates - Level term life insurance provides rates that are guaranteed to remain the same for the entire term of your policy.

How is the average cost of term life insurance determined?

There are many factors life insurance companies consider when deciding what they will charge for your term life insurance coverage.

Rating Factors:

• Age.
• Gender.
• Amount of coverage.
• Type of life insurance plan.
• Your occupation.
• Your hobbies (high-risk hobbies?)
• Health condition.
  
  
• Your family's health history
• Length of the life insurance plan you need.
• Do you smoke?
• Are you on medication?

How can you compare term life insurance rates?

There are several ways to compare prices for term life insurance.

You can contact a local life insurance agent using the yellow pages, or get a recommendation from a friend or family-member.

You can call a life insurance company direct to request free quotes.

Or, you could shop and compare free term life insurance rate quotes online by visiting a life insurance quoting service.

Make sure to compare rates from several carriers and review the financial rating of the insurance companies.

Tips for Comparing Term Life Insurance Quotes:

• Compare quotes from several carriers.
• Compare premium payment options for monthly, quarterly, semi-annual, and annual payments.
• Compare rates for 10, 15, 20 and 30 year terms.
• Compare rates at the next highest $100,000 limit of coverage.
• Lock-in rates 6 months before your next birthday.
• Consider the financial strength rating of the insurance companies.

If you have any questions about your term life insurance quotes make sure you get answers from the insurance agent or company before choosing a plan.

To learn more and request a free quote, Click Here ==>Average Cost of Term Life Insurance. You can also request free, instant life insurance quotes with no obligation.