The annual premium rates that different insurance companies calculate for the same person can vary by hundreds and even thousands of dollars. Typically, cost differences go up for life insurance policies with higher face amounts.
Ironically, consumers who want to research the best premium rates online often face challenges when all they want is an objective comparison of premiums for term life insurance.
For example, most websites that advertise free insurance quotes are either owned by or affiliated with licensed insurance brokers or agents who sell insurance for a living. These brokerage or agency websites only present rates from the limited number of insurance companies that they represent. Consumers who provide their email addresses and telephone numbers for a so-called free rate comparison risk being peppered with sales pitch emails and phone calls.
Life Insurance Rate Quotes Software
Compulife Software is an independent provider of term life insurance quotation software to over 3,000 life insurance brokers and agents in the United States and Canada. Compulife collects current data from rate cards and rate manuals that life insurers regularly disseminate to their sales force, and maintains a comprehensive database of these premium rates at their Term4Sale flagship website. The rate-comparison software developer offers a $50 reward to any user who first reports an incorrect premium price in one of their online quotes.
Searching Lowest Term Life Insurance Premiums for Californians
To calculate the term life insurance premiums for a $200,000 policy, the Los Angeles zip code 90043 was entered into the Compulife system. Also input were a handful of basic factors for a 53-year-old male non-smoker in excellent health.
Results are listed below.
Lowest 10 Year Term Life Premiums
According to Compulife software, Cincinnati Life Insurance Company has the least expensive annual rates among insurers selling 10-year term policies to males age 56 living in the Los Angeles area. Cincinnati Life’s yearly premium is 19.5% less than what North American Company for Life and Health charges for one of its 10-year term life insurance policies.
- Cincinnati Life Insurance … US$413 annual rate for 10 years
- Ohio National Life Assurance … $421
- Genworth Life and Annuity Insurance … $436
- Genworth Life Insurance … $436
- Security Mutual Life Insurance of NY … $439
- Savings Bank Life Insurance of MA … $442
- Ohio National Life Assurance … $447
- ReliaStar Life Insurance (ING) … $447
- Principal Life Insurance … $467
- Ameritas Life Insurance … $488
- EMC National Life … $489
- AAA Life Insurance … $496
- Union Central Life Insurance … $504
- Midland National Life Insurance … $513
- North American Company for Life and Health … $513.
Lowest 20 Year Term Life Rates
Cincinnati also sells 20-year term life insurance for the lowest annual premium, this time 24.9% lower than North American’s yearly rate. While Ohio National offers the second-cheapest rates on 10-year term life policies, that same insurer places 7th in the rate comparison for 20-year term life insurance.
- Cincinnati Life Insurance … $663 annual rate for 20 years
- Genworth Life and Annuity Insurance … $686
- Genworth Life Insurance … $686
- Principal Life Insurance … $733
- ReliaStar Life Insurance (ING) … $739
- Savings Bank Life Insurance of MA … $740
- Ohio National Life Assurance … $781
- Pruco Life Insurance … $785
- Security Mutual Life Insurance of NY … $805
- Ameritas Life Insurance … $810
- EMC National Life … $813
- Transamerica Life Insurance (TIIG) … $838
- Nationwide Life and Annuity … $839
- Midland National Life Insurance … $883
- North American Company for Life and Health … $883.
Lowest 30 Year Term Life Rates
Fewer life insurance companies appear to have rates available in Compulife’s database for 30-year term life quotations. Still, Cincinnati Life again places first among low-cost term life providers with a yearly rate 35.9% less expensive than Conseco Insurance’s annual premium.
- Cincinnati Life Insurance … $1,333 annual rate for 30 years
- Transamerica Life Insurance (TIIG) … $1,588
- Principal Life Insurance … $1,591
- Pruco Life Insurance Company … $1,637
- American General Life Insurance … $1,757
- Banner Life Insurance … $1,760
- AAA Life Insurance … $1,908
- TIAA-CREF Life Insurance … $2,013.46
- Conseco Insurance … $2,080.
Greatest Long-Term Life Insurance Savings
Consumers should not rely solely on premium rates to make a final decision on buying term life insurance, not matter how credible the statistical data. While the above numbers seem to suggest that the 56-year-old Californian can realize substantial savings by paying $413 for a 10-year term life policy instead of the $1,333 yearly premium for 30 years, renewal premiums for 10-year life insurance start a dramatic annual increase at $5,367 at its 11th year. That premium is $13,883 in the 20th year and ends up at $35,443 in the 30th year.
For Cincinnati Life’s 10-year life insurance policy costs an accumulated premium cost of $319,410 over 30 years. This contrasts with just $39,990 for the 30-year term life insurance policy due to its annual premium fixed at $1,333 for 3 decades.
Software like the CompuLife system enables consumers to benchmark the lowest premium rates. However, these online rate calculators do not replace the need for a professional agent or broker who can intelligently interpret premium comparisons and underlying insurance policy details.
Legally, life insurance must be sold by a licensed agent or broker. Hopefully, that accredited professional subscribes to and knows how to apply third-party premium rate comparison software.