If you have compared your quotes for term life insurance and filled out your application online, you may be wondering what the final pricing for your life insurance policy will be.
In this post, we explain why your final offer from your life insurance company could be more or less than the quote you received while shopping online. The more you understand how life insurance underwriting works, the easier you can evaluate your policy options and determine the pricing that is best for you and your family.
Will my term life insurance policy rate be the same as my online quote?
If you are using an online shopping tool (such as Quotacy’s) to compare term life insurance policy quotes side-by-side, you’ll notice that each life insurance company offers a different price for the same term length and coverage amount.
In the screenshot above, you see quotes ranging from $17.43 to $18.16 per month for a $500,000, 20-year term life insurance policy.
Each life insurance company has their own pricing structure. At Quotacy, we’ve made the process of comparing term life insurance quotes from dozens of trusted companies easier for you.
» Calculate: Life insurance needs calculator
In minutes, without entering any personal contact info, you can quickly get a ballpark estimate of how much your life insurance could cost per month based on your own preferences that you select in our quoting tool.
Get started by answering 4 simple questions
Our ballpark quotes are fairly accurate for most individuals, but for some with more complex health conditions, risky hobbies, or a high-risk job, for example, the life insurance company may need to ask you for additional information to accurately determine your mortality risk and, therefore, your final cost for life insurance.
Determining policy rates that are fair to you and that don’t represent an unacceptable risk for the life insurance company is what underwriters do. They look at the big picture of your risk factors, such as the combination of your age, gender, health, family medical history, and so on, as they evaluate your application.
Factors that impact your life insurance policy quotes during your application process
There are two types of underwriting processes available in today’s life insurance marketplace. Some life insurance companies offer accelerated underwriting to insure you without a medical exam.
Some offer traditional underwriting that requires a physical exam to evaluate your health.
If during your medical exam, there are health factors that show up that you didn’t report on your application or during your phone interview, this may cause your life insurance policy quotes to be different from those that you found online.
Here are examples of some of those health conditions:
Blood Pressure & Hypertension
If your blood pressure reading is high during your medical exam and you have not stated on your application that you suffer from hypertension, your life insurance company may investigate further. This may influence your life insurance policy quotes and cause them to be higher than your online quotes.
If you do indeed have hypertension, but your blood pressure is under control and you have not experienced end-organ damage, then your application may be considered within a standard risk class.
If, however, your blood pressure reading indicates formerly undetected hypertension, you may receive a higher rate.
It’s important to fully disclose all of your medical conditions on your life insurance application. Doing this allows Quotacy’s in-house underwriters and life insurance agents to help place you with a life insurance company that works best with your health history.
Our in-house underwriters can do what’s called an “underwriter’s first look” before submitting your application. The first look uses their industry experience to guide you in the right direction from the start. That’s one advantage of working with a life insurance broker like Quotacy.
When preparing for your medical exam, it’s important to be aware of the impact of what you eat near the time of your exam. If you are not being treated for high cholesterol levels, then an appearance of elevated levels of low-density lipoprotein (LDL), which is an indicator of coronary artery disease or stroke risk may cause your life insurance policy quotes to be higher than your first online quotes.
Eating fatty foods around the time of your exam can temporarily raise your cholesterol levels, causing you to receive a reading that presents an inaccurate portrait of your health.
If you have coronary artery disease, take a look at our insurance buyer’s guide for your condition.
Height and Weight
Changes in your height and weight will influence your life insurance policy quotes. Insurance underwriters look at your Body Mass Index (BMI) differently than your doctor might. They use a special Build Chart to place you within a specific risk class.
If your weight is different than what you reported when you received your initial quote, then your life insurance policy quotes may be higher or lower than the premiums that you found online.
Helping you find the best life insurance company for your age, health, and lifestyle is our specialty. By doing this, there is a higher likelihood that the price you were quoted online will match the final price offered to you after your application is underwritten.
Mental Health Issues
If you have mental health issues this will not necessarily prevent you from becoming insured. Details of how well your issues are managed with medication or therapy (or both) will help life insurance underwriters determine a fair rate for your premiums.
When you use our platform to find term life insurance, we go to bat for you to find a good fit for your application.
For example, within our quoting tool, you’ll see a section called Quotacy’s Advice that shares insights into which life insurance company is best for each type of applicant. You can also review this advice from our life insurance company reviews for each company with work with at Quotacy.
Family Medical History
Your family’s medical history may impact your life insurance policy quotes. There are many companies, like Legal & General as shown in the screenshot above, who offer competitive rates for individuals who have had close relatives (father, mother, or siblings) diagnosed with or who have died from cancer.
Quotacy works with numerous leading life insurance companies and will make sure that your application is matched with a company that is most likely to approve your application with the best pricing for your family medical history.
Life insurance companies may define your smoking status differently.
If you have recently quit smoking, your insurance company may still consider you a smoker. If you classified yourself as a non-smoker when you received your online quote and it is revealed that your last use of tobacco was too recent to allow you to maintain that status, your life insurance policy quotes will be different from the rate that you saw online.
Read our life insurance buyer’s guide for smokers to learn how smokers can get affordable term life quotes.
If your job entails foreign travel or requires you to occasionally perform high-risk duties, this may cause you to receive higher life insurance policy quotes than you originally received online, if you didn’t mention that hazards of your job. The same goes for hobbies that may put you in harm’s way.
Other factors that may cause a difference in your life insurance policy quotes and final policy offer include:
- substance abuse,
- changes in your driving record,
- criminal conviction,
- health crisis, or
- moving abroad.
So what do you do if your premium is different than quoted and you aren’t happy with the result?
If you’re with Quotacy, you have options. You can:
1. Stay with the life insurance company that you picked, but change the coverage amount or length of term to make your premiums more affordable. Use our free quotes tool to see how this works.
2. Choose a new life insurance company that we recommend as a potentially better match.
We will work to get you the best possible coverage at a rate that matches your budget from our marketplace of leading insurance companies in the USA.
» Compare: Term life insurance quotes
How to get the best life insurance policy quotes
Every life insurance company weighs their applicants’ risk factors differently when determining their life insurance policy quotes. Because your life can’t be represented by a single set of numbers, underwriters need to be able to get to know more of your story through a medical exam and learning about your personal history and lifestyle.
At Quotacy, we’ve helped thousands of families get term life insurance at highly affordable rates. We specialize in helping applicants with unique challenges to becoming insured by finding the right policy for their family’s needs.
The best part? You can start the process anonymously and without any obligation with our free life insurance quotes tool.
About the writer
Director of Inbound Marketing
Kate is Director of Inbound Marketing working on business strategy, SEO, and writing for QuotacyLife. Kate's gift is explaining complex financial planning and life insurance topics in a simple and direct way to help families become more financially savvy and empower themselves to make wise choices. She works with Quotacy's underwriters to ensure the financial tips shared in her blogs are spot-on and truly helpful to anyone researching the ins and outs of life insurance online. If you would like a topic to be covered in our blog, leave Kate a comment below or connect with her on LinkedIn.