How to Compare Life Insurance Quotes
Two quotes for "$100,000 of life insurance" can be completely different products. One might last 10 years, the other for life. One might pay in full on day one, the other only after two years. Before you compare prices, make sure you're comparing the same thing.
Line up these seven things first
- Policy type. Term, whole life, IUL, final expense or guaranteed issue. A term quote will always look cheaper than whole life because it's temporary.
- Length of coverage. For term, is it 10, 20 or 30 years? For permanent coverage, is it guaranteed to age 100 or 121, or only "projected" to last?
- Premium guarantee. Is the price locked for the full term or for life? Some policies have premiums that step up every year or every five years.
- When full coverage starts. A level benefit pays in full from day one. A graded or modified benefit pays only a portion, or a refund of premiums plus interest, for the first two or three years. See waiting periods explained.
- Rate class. An online quote often assumes "preferred plus" health. If your actual approval comes in at "standard," the price can be 50 to 100 percent higher. Ask what rate class a quote assumes.
- Included riders. Living benefits, waiver of premium and conversion rights vary widely. A policy that's $4 cheaper but has no terminal illness benefit may be the worse deal.
- The company itself. Check its financial strength rating from A.M. Best (look for A- or better) and its complaint record with the Texas Department of Insurance.
A side-by-side example
Here are two illustrative quotes for a 66-year-old woman looking for $15,000 to cover final expenses:
| Quote A | Quote B | |
|---|---|---|
| Monthly premium | $62 | $79 |
| Policy type | Guaranteed issue whole life | Simplified issue whole life |
| Health questions | None | A short list |
| Full benefit begins | After 2 years | Day one |
| If she dies in year 1 of illness | Premiums back plus interest (about $780) | $15,000 |
| Premium locked for life | Yes | Yes |
Quote A looks cheaper. But if she can answer the health questions for Quote B, she gets full coverage immediately for about $17 more a month. For someone in good enough health, B is the better value. For someone who can't qualify for B, A is still far better than nothing.
Red flags in a quote
- The price is far below every other quote with no clear reason
- "Projected" or "illustrated" values with no guaranteed column shown
- Pressure to decide today
- No mention of a waiting period on a no-health-question policy (they nearly always have one)
- A suggestion to cancel an existing policy before the new one is approved
Your comparison worksheet
For each quote, write down:
- Carrier name and A.M. Best rating
- Policy type and length of coverage
- Monthly premium, and whether it's guaranteed
- Rate class assumed
- Day-one coverage, or a waiting period?
- Riders included free
- Conversion options (for term)
An independent agent can pull quotes from several carriers at once, such as Corebridge Financial, Mutual of Omaha and Transamerica, and line them up on the same terms. That saves you from re-entering your details on a dozen websites.
Get quotes that are actually comparable
Tell us what you're looking for once, and see several carriers side by side with the fine print spelled out.
This guide is general education, not tax, legal or financial advice. Product features, issue ages and prices vary by carrier and state and change over time.