When you consider buying term life insurance, don’t just stop at the first quote you get. It’s important to compare several different plans. You might be able to get more insurance for a lower price.
The reason is because insurers put their coverage into groups. For instance, if you want life insurance for somewhere between $50,000 and $100,000, you’ll pay a little bit more per year than the next rate group of $100,000 to $150,000, and so on. It’s like buying in bulk for life insurance.
Each life insurance company sets their own coverage and pricing groups, which are known as rate bands. So, if you only want $100,000 of life insurance, you might actually pay more for it with one company than you would for $150,000 of coverage with another company.
Don’t put on blinders and only look at the amount of insurance you think you need. Consider all the coverage available to you and see which fits into your budget best. You might be surprised at how much life insurance you can really afford.