The cost of life insurance is a company's calculation of how much money it needs to collect from each member of the "pool." It is always based on the mortality tables and the statistical calculation of how much risk the company is accepting by insuring you at any point in time.

Here are a couple things to keep in minding when you're looking for cheap life insurance:

• Shop around for rates

  It is a competitive marketplace, and much of the competition focuses on price. Don't hesitate to seek premium quotes from several different companies.

• Shop for your own needs

  If term insurance fits, that's what you should shop for. If you want to lower your premium at all costs, you may want to consider using a direct writer -- a company that cuts costs by operating without agents. Consider your own convenience, however: Do you want personal contact with an agent? Or if you buy an annuity, how fast can you get to your money in case of an emergency? If you are buying whole life, how fast does your money accumulate? What will the cash value be in one year? Three years? Ten years?

InsureMe has this advice for people who want cheap life insurance:

1. Improve your health

   Quit smoking, eat healthier and exercise regularly. This will decrease your premiums and increase your life expectancy.

2. Consider your hobbies

   If you skydive, deep-sea dive or participate in any other high-risk activities, your premiums will be more expensive for obvious reasons.

3. Use an agent

   An agent can save you both time and money when shopping for life insurance. The InsureMe network works diligently with your specific insurance needs to find you the lowest rate possible. To request a quote from an agent in your area click here.

4. Compare costs

   If you're considering the purchase of permanent life insurance, compare the costs and benefits of Whole, Universal and Variable policies to your own term plan. It may save you money!

5. Term insurance first

   Try buying term insurance for at least the first 6 months. Note: You can convert term to permanent, but not permanent to term.

The answer on this page was edited based on source material from the Ohio Dept. of Ins. and InsureMe. These pages are no longer being updated. --Webmaster

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InsureMe and NetQuote are the two top Internet tools for getting competing quotes. Their online forms ask you a few quick questions and then match your needs with competing companies. We recommend trying them both to get the widest selection for comparison.