- Compare quotes only when coverage amount, term length and rate class are identical.
- An online quote is an estimate; the final price is set after underwriting.
- Check the insurer financial strength, riders included and whether the premium is guaranteed.
A life insurance quote looks simple: one monthly number. But two quotes that look similar can describe very different products, and a number that looks cheap may depend on assumptions you will not meet. Learning to read a quote lets you compare offers fairly and avoid surprises.
The items to check on every quote
1. Death benefit
This is the amount your beneficiaries receive. A quote for $500,000 and one for $400,000 are not comparable, even if the cheaper one looks like a bargain. Always compare the same death benefit.
2. Term length
A 10-year quote will almost always look cheaper than a 30-year quote for the same amount, because the insurer carries risk for less time. Make sure each quote uses the same term, and that it fits how long you actually need coverage. See how to choose a term length.
3. Rate class
Quotes are often shown at the best rate class, such as Preferred Plus, which only some applicants qualify for. Your final rate class depends on underwriting. If your health or lifestyle puts you in a different class, the final price will be higher. Try getting quotes at more than one class so you see a realistic range.
4. Premium type
For term life, you want a level premium that is guaranteed for the whole term. Some products have premiums that can change, which makes their quotes harder to compare. Confirm that the price is guaranteed.
5. Payment frequency
Many insurers charge less if you pay annually than if you pay monthly, so the monthly figure may add up to more than the annual price over a year. Check how the quote is presented and compare totals.
6. Riders and fees
Check whether the quote includes optional riders you did not request, or policy fees. A quote with extras costs more than a basic one. See life insurance riders explained.
7. Conversion and renewal terms
Does the policy include a conversion option, and until when? Can it be renewed after the term, and at what cost? These features do not change today's price but can matter a great deal later. See term life conversion.
8. The insurer itself
A policy is only as dependable as the company behind it. Look up the insurer's financial strength rating from agencies such as AM Best or S&P, and check complaint information with your state insurance department.
A quote is not a final offer
An online quote is usually an estimate based on the information and rate class you provide. The real price is set after underwriting, which may include a medical exam, a database check and sometimes a review of medical records. It can come back at the quoted price, higher, or occasionally lower. Never cancel existing coverage until a new policy has been approved and is in force.
How to compare quotes fairly
| Check | Insurer A | Insurer B |
|---|---|---|
| Death benefit | Same | Same |
| Term length | Same | Same |
| Rate class assumed | Note it | Note it |
| Guaranteed level premium | Yes or no | Yes or no |
| Riders and fees included | List them | List them |
| Conversion option | Deadline | Deadline |
| Financial strength rating | Note it | Note it |
Red flags
- A price far below every other quote. It may assume a rate class you will not get or leave out important terms.
- Pressure to buy immediately.
- Vague answers about guarantees, fees or what is included.
Get at least three quotes, apply to the two most competitive, and read the sample policy before you commit.
Enter two quotes into our free quote comparison calculator to see the cost per $1,000 of coverage side by side.