Save on Life Insurance Premiums by Buying from Top-Rated Companies
It used to be that, if you wanted get really cheap term insurance, you would go to a company that was considered to be less than high quality. They offer lower premiums because their investment portfolios were of lower quality which also generated higher yields. Higher quality life insurance companies were much more conservative with their investment portfolios, so they charged a higher premium to cover their more conservative assumptions. Nowadays, the tables have turned, and high quality insurance companies are generating the same or better returns as lower rated companies, and, through higher business volume are able to charge less, or, at least charge competitive premiums. Given the choice to buy something as important as life insurance from a highly rated company or a low-rated company, you would be well-advised to go with the highly rated company.
The way to compare term life insurance premiums is to compare the standard rates which are more apples to apples. A lot of companies will try to lure you in with really low “preferred” premium rates. But, very few people can actually qualify for their preferred rates. And, companies apply different formulas and criteria in calculating their preferred rates. So, if you want to see just how competitive a company's term rates are, always check the standard rates.