Once you’ve secured a life insurance policy, it can be easy to “set it and forget it.” However, it’s important to make sure you’re taking the time each year to evaluate your plan and decide if it’s still meeting your needs. After all, as your needs evolve, the policy you originally purchased may no longer align with your financial priorities and goals. Switching policy types, changing your coverage amount or term length, and adding or removing beneficiaries are all common actions you may need to take, and it’s important not to let them fall by the wayside.
If you’re not sure where to start when it comes to reevaluating your coverage, SelectQuote can help. No matter your priorities, we can work with you to modify your existing policy or shop for new coverage. A great place to start is simply understanding how often you should look around and compare life insurance rates. In this article, we’ll walk you through why it’s important to periodically compare life insurance rates and common scenarios in which you should consider updating your policy or shopping for a new one.
Shopping and Comparing Life Insurance Rates
There’s much to consider when shopping and comparing life insurance quotes. To make better sense of your quotes, it helps to understand the different factors that can influence your monthly premium. This will give you greater insight into what you’ll be paying for your policy and why. Common factors that go into calculating your life insurance rates include:
Type of policy
Amount of benefit
Length of term policy
Your health and age at the time of purchase
Your hobbies
Your gender
Life insurance companies often change the cost of policies periodically, so regularly re-shopping and comparing coverage and rates is a good habit to practice. There may even be opportunities to save money or increase your life insurance coverage at the same price. Along with fluctuating rates, certain life events can present a good opportunity to reevaluate your coverage.
Changes That May Require Updates to Your Life Insurance Coverage
With all the changes life can bring, it’s unlikely that the life insurance policy you purchased years ago is still the right fit for your needs. Here are some common scenarios that may prompt you to consider modifying your coverage or shopping for a new policy:
Changed jobs or received a promotion
Purchased a new home
Expanded your family
Had a change in marital status
Factors That Could Improve Your Life Insurance Rates
If you’re interested in lowering your life insurance premiums, there are several lifestyle changes you can make to reduce your risk in the eyes of insurance carriers. Taking any of the following actions may help you find more favorable life insurance rates:
Losing weight
Quitting smoking
Changing health status or medications
Better controlling a chronic condition like diabetes or high blood pressure
Life insurance rates can increase rapidly as you age, so if any of the above actions apply to you, it’s important to revisit your coverage and see if lower rates are available to you.
Let SelectQuote Find the Right Life Insurance for You Today
Life insurance offers invaluable peace of mind and security, but it’s important to regularly evaluate your coverage to ensure you still have the right protection for your needs. Not sure where to start? SelectQuote can help. We have nearly 40 years of experience helping people like you find coverage. Whether you want to update an existing policy or search for new coverage, our licensed insurance agents will guide you through every step of the process, doing the heavy lifting on your behalf so you can keep protecting the people who matter most to you.
