5 Steps for Getting Competitive Quotes For Life Insurance

Updated July 2026

If you have someone depending upon your income, it is very important that you have life insurance to protect your loved ones financially in the event of your untimely death. Of course, with so many expenses, it is also important to make sure that you are not paying more for life insurance than you need to. To get the most for your money when it comes to buying life insurance, here are five tips for getting competitive quotes for life insurance.

Why Most People Overpay for Life Insurance

More than one in three American households, 30% in 2010, had no life insurance at all. That figure comes from LIMRA’s national survey of insurance penetration, and it’s not a small gap. It reflects roughly 5 million households that later added coverage once the trend was studied more closely, per LIMRA’s follow-up reporting. The shortfall isn’t only about need going unrecognized. A lot of it comes down to people accepting the first quote they’re handed instead of shopping it around.

Insurance pricing isn’t uniform. It’s based on risk, and risk assessments vary widely between underwriters. Chase, SoFi, and Experian all use different risk models. One insurer might see a 45-year-old smoker as high risk and charge $500/month. Another might offer the same coverage for $280, a difference of $220 a month. Run that out over a year and you’re looking at $2,640 in savings, without changing a single health habit.

Why the spread? Underwriting standards differ. MetLife may require a medical exam for all applicants over 50. AIG may waive it for applicants with a FICO Score above 720. State Farm uses a point system that weighs smoking, weight, and family history differently.

Even more telling: the NAIC reports that premiums for identical policies can differ by up to 50% across carriers. That’s not a typo, and it’s not a rare edge case. It’s a documented gap, and it’s one you can close simply by comparing quotes before you sign anything.

Step 1: Give Up Unhealthy Habits, Start Now

Smoking remains the top driver of high premiums. A smoker pays up to 250% more than a non-smoker for term life. That’s not an exaggeration. California’s Department of Insurance confirms this gap.

Here’s what that looks like in real dollars. Using the comparison table below, a non-smoker at State Farm pays around $220 a month for a 20-year, $500,000 term policy, or $2,640 a year. A smoker facing that carrier’s 220% surcharge would pay roughly $704 a month, or about $8,448 a year. That’s a difference of nearly $5,800 annually for identical coverage, money that could instead go toward retirement savings, a mortgage payment, or a kid’s college fund. Quitting smoking isn’t just a health decision. It’s one of the few underwriting factors you have direct control over.

But quitting isn’t just for policyholders. Even if you’re a former smoker, insurers check your history. The Minnesota Department of Commerce notes that most carriers require 12 months of non-smoking to qualify for non-smoker rates. They use data from the CDC and the FDA to verify.

Other habits matter too. Skydiving, bungee jumping, or scuba diving? Insurers flag these as high-risk hobbies. Prudential and MassMutual often apply a 15–30% premium surcharge for such activities. Travel to high-risk countries can trigger additional underwriting questions. The U.S. State Department provides travel advisories used by carriers like Guardian and Liberty Mutual.

Even your DTI (debt-to-income ratio) impacts pricing. A DTI above 40% may prompt a life insurer to increase premiums. SoFi and Chase use this metric for loan underwriting, and insurers have begun adopting similar frameworks.

Step 2: Shop Around, Use Independent Agents or Direct Quotes

Don’t rely on a family friend for this one. Commission-based agents have a built-in conflict of interest, since they earn more from policies with higher premiums. That’s not dishonest, it’s just human nature working against your wallet. Washington State’s Office of the Insurance Commissioner warns that “family recommendations may not lead to the best value.” They advise shopping around.

Instead, use an independent agent. These professionals aren’t tied to one insurer and can pull quotes from 15+ carriers, including New York Life, Nationwide, Allstate, and Transamerica. The NAIC offers a free guide that explains how to find them. It’s downloadable and detailed.

You can also go direct. Websites like Policygenius, Quotacy, and Bestow allow you to compare quotes from multiple insurers in minutes. Experian and Equifax now provide credit-based insurance scoring, and some insurers use this data to personalize premiums. Chubb and MetLife have incorporated it into their underwriting models.

Compare at least three quotes before deciding anything. A South Carolina DOI bulletin says consumers should get quotes from multiple companies before buying or renewing. They emphasize that pricing isn’t static. One honest caveat: pulling several quotes takes time, usually an hour or two of paperwork and phone calls across a few carriers, and the savings won’t always be dramatic if your health profile is already excellent. But for anyone with even a minor risk factor, borderline credit, a few extra pounds, an old smoking habit, the payoff is usually worth the effort.

Step 3: Understand What You’re Buying, Term vs. Whole Life

Most people don’t need whole life. It’s not a savings account, it’s a life insurance policy with a cash value component, and that cash value grows slowly. It often earns less than a CD or money market account. Federal Reserve data shows average yields on 5-year CDs were 2.8% in 2012. Experian reports typical whole life cash value growth is around 0.5–1.2% annually.

Term life is simpler. It provides coverage for a fixed period, 10, 20, or 30 years. If you die during the term, the beneficiary gets the death benefit. If you live, the policy ends with no payout. That’s fine, because it was never meant to be an investment vehicle in the first place.

According to California’s Department of Insurance, term life is “the best choice for most people.” It’s affordable, straightforward, and matches life needs. A 35-year-old non-smoker might pay $220/month for a 20-year $500,000 term policy. The same coverage with whole life could cost $800–$1,000/month, a 300–400% premium difference for the identical death benefit.

Whole life makes sense only if you have complex estate planning needs, say you’re a high-net-worth individual with a $10M estate, funding a trust, or planning tax-efficient transfers. Then whole life might be appropriate. For the other 90% of people, it’s usually the wrong tool for the job.

Step 4: Compare Apples-to-Apples, Don’t Forget the Fine Print

Just because two policies say “$500,000 death benefit” doesn’t mean they’re equal. The NAIC warns that “coverage details matter more than the headline number.”

Look at the exclusions. Some policies exclude death from suicide in the first two years. Others exclude war-related death. Chubb and Travelers have specific war exclusions. Prudential includes a clause for death due to self-inflicted injury.

Check the renewal terms. Some term policies renew at a higher rate, and a 20-year term might renew at 300% of the original rate. That’s not a surprise buried in fine print somewhere, but you do need to know it going in.

Also compare accelerated death benefits. Can you access part of the death benefit if diagnosed with a terminal illness? MassMutual and Northwestern Mutual offer this. State Farm does not.

And examine lapse rates. A policy that lapses after five years is useless. NAIC data shows some insurers have lapse rates as high as 40% in year five. Low lapse rates indicate better customer service and financial strength.

Step 5: Re-Evaluate Regularly, Don’t Assume Your Policy Is Still Competitive

Life changes. You get married. You have kids. Your income increases. Your health improves. Your policy should keep up with all of it. South Carolina’s DOI says consumers should re-evaluate every 2–3 years. Waiting longer risks overpayment.

Consider getting a new quote every 24 months. If you quit smoking, you can qualify for non-smoker rates. If your FICO Score improves to 740+, you might save 15–20%. Experian reports that credit-based insurance scores correlate strongly with claim frequency: higher scores mean lower risk, and lower risk means lower premiums.

Also, new carriers keep entering the market. Bestow and Policygenius now offer no-exam term policies for people with strong credit and clean medical histories. These can be 20–30% cheaper than traditional policies. Chase and SoFi have begun bundling life insurance with other financial products. One limitation worth flagging: re-shopping only pays off if your health or credit has actually improved, or if you were overpriced to begin with. If you’ve developed a new health condition since your last policy, a fresh application could trigger higher rates or a decline, so read your existing contestability and conversion terms before you cancel anything.

Frequently Asked Questions

Can I get life insurance without a medical exam?

Yes. Some insurers offer no-exam policies for healthy applicants. Bestow and Quotacy provide online underwriting. But premiums are higher. California’s DOI warns these may carry higher rates.

How much does life insurance cost for a 35-year-old non-smoker?

A 20-year $500,000 term policy costs about $220/month on average. Minnesota’s Department of Commerce cites this figure. Prices vary by carrier and health.

Do I need life insurance if I’m single with no dependents?

Not necessarily. But if you have a mortgage, student loans, or co-signed debts, life insurance protects others. Experian data shows 37% of young adults have student debt. LIMRA’s 2010 report notes that even single people benefit from coverage. Given that 30% of U.S. households had no life insurance in 2010, plenty of people without an obvious dependent still end up underinsured for debts left behind.

How do credit scores affect life insurance premiums?

Higher FICO Scores correlate with lower risk. SoFi and Chase use credit scores for underwriting. Minnesota’s DOI confirms that credit-based insurance scores influence premiums. A FICO Score above 740 can save 15–20%.

Can I switch life insurance companies mid-term?

Yes. But you can’t cancel the old policy and keep the new one. You must apply for a new policy, and if your health has declined, you may be denied. NAIC advises checking for any surrender charges. They recommend re-evaluating every 2–3 years.

Do term life policies expire?

Yes. A 20-year term policy ends after 20 years. If you’re still alive, the coverage stops, though you can often convert it to whole life without a medical exam. Prudential and MassMutual offer conversion options. Washington State’s DOI confirms this.

Is whole life insurance a good investment?

No, generally speaking. The cash value grows slowly. FDIC data shows average CD yields were 2.8% in 2012. Experian reports whole life cash value growth averages 0.5–1.2%. California’s DOI says it’s inefficient for savings. Use a 401(k), IRA, or brokerage account instead.

How do I find a good independent agent?

Use the NAIC’s agent locator. It’s free and lists licensed agents by state. You can also ask for referrals from Chase or SoFi customers. Independent agents often work with Transamerica, Guardian, and MetLife.

Can I get a life insurance quote online?

Yes. Policygenius, Quotacy, and Bestow offer instant quotes. They pull data from Experian and Equifax to assess risk. South Carolina’s DOI recommends using multiple online tools.

Does life insurance cover suicide?

Usually not in the first two years. Most policies exclude suicide during the first 24 months. Prudential, Liberty Mutual, and Chubb have this clause. Washington State’s DOI explains this.