One of the more ordinary benefits that companies provide staff is group term life insurance. But unlike other fringe benefits whose taxable worth is based on the cost to the company, group term life insurance is treated in a different way.

The universal rule for taxing fringe benefits is that all fringe benefits are taxable to the recipient based on the fair market cost, and the provider of the benefit is accountable for withholding federal income taxes, FICA taxes (social security and Medicare), and paying FUTA taxes. The taxes may be withheld from the recipient’s cash payment. The fair market cost of the fringe benefit may be condensed, however, by the following amounts:

1.    Any quantity that the law excludes from payment; and

2.    Any quantity that the recipient pays for the protection.

Even though the fair market worth of group term life insurance (also knows as GTL) is subject to federal income tax, it is not subject to federal income tax withholding. But its cost is subject to withholding for social security and Medicare taxes (commonly referred to as FICA taxes). The rate of GTL, however, is not subject to FUTA tax.

So how should companys compute the fair market worth (FMV) of an employee’s GTL? Rather than being based on the cost of the premiums for the GTL, the FMV is based on the IRS Uniform Premium Table I and the employee’s age as of December 31 of the year in which the benefit is given. (Table I is located on page 11 of IRS Publication 15-B and is reproduced to the left.) Using the table the company estimates the monthly FMV based on the face worth benefit of the plan.

Federal law does allow a fraction of the GTL’s fair market worth to be expelled from an employee’s income. The first $50,000 of GTL on the employee can be excluded from the employee’s chargeable payment. GTL on an employee’s dependents can be treated as a de minimums border benefit if the exposure on any dependent sheltered by the policy is $2,000 or less. If the dependent coverage on any dependent is greater than $2,000, then the FMV of the entire benefit must be included in the employee’s income based on the highest face worth.

Since the FMV of GTL is based on an individual’s age, the question arises concerning whose age to use for dependent coverage. If the company provides one-person policies on each of an employee’s dependents, then the spouse’s age or the dependent’s age as of December 31 can be used. If, however, all of an employee’s dependents are covered under a solitary policy that is part of the employee’s GTL, then the company must use the employee’s age as of December 31.

To demonstrate, presume an company has a policy of providing GTL coverage on the employee equal to twice the employee’s yearly salary, and the dependent coverage provides $5,000 in spousal coverage and $1,500 on each infant. If the employee were salaried $35,000 per year, then he would collect $70,000 in coverage. Since the first $50,000 in coverage on the employee can be disqualified, only $20,000 of coverage on the employee is taxable. On the other hand, since the spousal coverage is superior to $2,000, the whole $5,000 in coverage on the partner is also taxable. So the employee’s taxable coverage would be based on $25,000. Please note the fact that even if the coverage on offspring were greater than $2,000 as well, the worth of the dependent coverage would still be based on the worth of the highest coverage as long as all of the employee’s dependents are incorporated in a sole policy as part of the employee’s GTL rather than on individual policies.

Suppose an employee is able to purchase supplementary coverage through his company, and his company merely has the employee pay the additional premiums through a payroll withdrawal. The taxable worth of the assistance still has to be considered using the IRS table rather than what is salaried in premiums. No matter which that is salaried by the employee can be deducted from the FMV of the benefit.

The employee is always accountable for paying the FICA taxes on the worth of the GTL. In nearly all cases, the worth can be added to a salary before the end of the year and the FICA taxes withheld from the employee’s regular income. This must be done at least once for each year, but companies have the choice of totaling the worth of the GTL to the employee’s pay and maintenance the taxes more frequently. The worth is not subject to income tax withholding. If, however, the company is not capable to collect the FICA taxes before the last part of the year, or the employee is fired before the tax can be withheld, the employee is still accountable for paying the employee portion of the FICA tax. The company must pay the employee’s share of the FICA taxes, but the worth of the tax salaried must be added to the employee’s wages using the gross-up method. (Company describes the gross-up method in IRS Publication 15-A.”)

In addition to calculating the worth of the benefit, a company must be able to correctly report the worth of the benefit. The worth of the benefit must be included in Box 1 of the employee’s Form W-2 and in Box 12 with Code C. In addition, the worth must be included in Boxes 3 and 5 for social security and Medicare wages, and the taxes withheld should be reported in Boxes 4 and 6.

Although the FMV of GTL is not taxable for FUTA purposes, it must still be reported on Form 940 at the end of the year. The worth should be included on Line 1 of Part I of Form 940, and it should be reported as excludable wages on Line 2.

Pennsylvania is the only state that does not tax the worth of the GTL, so companies must also include the worth of GTL in the employee’s income for state purposes on the Form W-2.

So let’s consider a practical example based on the following assumptions:

·      Insurance worth is $100,000

·      Employee pays $5.25/month for excess insurance

·      Employee is 52 years old on August 1, 2003

·      Employee is hired on March 1, 2003 and coverage begins April 1

Calculate the Fair Market Worth of the employee’s coverage as follows:

·      Calculate the worth of excess insurance. ($100,000 - $50,000 = $50,000)

·      Divide the excess worth by $1,000. ($50,000 / $1,000 = 50)

·      Find employee’s age as of December 31 in Table I. ($0.23 per $1,000 per month)

·      Multiply the cost by the factor from the second step. ($0.23 x 50 = $11.50)

·      Subtract any premiums salaried by the employee. ($11.50 - $5.25 = $6.25)

·      To calculate the annual amount, multiply by the number of months covered. ($6.25 x 9 months = $56.25)

If we presume that the employee did not reach the social security limit for the year, calculate the FICA taxes as follows:

·      Social security tax. ($56.25 x 6.2% = $3.49)

·      Medicare tax. ($56.25 x 1.45%) = $0.82)

The fringe benefit should be reported on the employee’s Form W-2 as follows:

·      Add $56.25 to the totals in Boxes 1, 3 and 5.

·      Add $3.49 to the total in Box 4.

·      Add $0.82 to the total in Box 6.

·      Enter $56.25 in Box 12 with Code C.

Now let’s modify our scenario slightly. Suppose that the employee is covered from January to September and is terminated in September 2003. The company estimates the GTL only once per year and withholds the tax from the last paycheck each year, so the taxes have not been withheld from the terminated employee’s pay. Since the employee is still accountable for paying the FICA taxes, the company must gross up the worth of the benefit so the taxes are included in the employee’s income.

Calculate the gross-up amount and the taxes as follows:

·      Calculate the tax factor by subtracting the tax rates from 1. (1 - .062 - .0145 = .9235)

·      Divide the benefit by the tax factor. ($56.25 / .9235 = $60.91)

·      Calculate the social security tax. ($60.91 x 6.2% = $3.78)

·      Calculate the Medicare tax. ($60.91 x 1.45% = $0.88)

·      Now the benefit would be reported on the employee’s form W-2 as follows:

·      Add $60.91 to the totals in Boxes 1, 3 and 5.

·      Add $3.78 to the total in Box 4.

·      Add $0.88 to the total in Box 6.

·      Enter $56.25 in Box 12 with Code C. (Note that the gross-up is not included in this Box.)

In some cases an company may continue to provide GTL to former employees (including retirees). If that is the case, the former employee is still accountable  for paying the FICA taxes, but since the individual is no longer actively employed, the company cannot withhold the tax. However, the former employee must pay the tax on his annual Form 1040. Even though the individual is no longer an employee, he should still be provided with a Form W-2 reporting the benefit.

Suppose the former employee is 62 at the end of the year and is covered under a policy for $120,000 for the entire year. Calculate the benefit as follows:

·      Calculate the worth of excess insurance. ($120,000 - $50,000 = $70,000)

·      Divide the excess worth by $1,000. ($70,000 / $1,000 = 70)

·      Find former employee’s age as of December 31 in Table I. ($0.66 per $1,000)

·      Multiply the cost by the factor from the second step. ($0.66 x 70 = $46.20)

·      Multiply by the number of months covered. ($46.20 x 12 months = $554.40)

·      Social security tax. ($554.40 x 6.2% = $34.37)

·      Medicare tax. ($554.40 x 1.45% = $8.04)

So the former employee would receive a Form W-2 containing the following amounts:

·      Report $554.40 in Box 1, 3 and 5

·      Report $554.40 in Box 12 with Code C.

·      Report $34.37 in Box 12 with Code M. (Uncollected tax)

·      Report $8.04 in Box 12 with Code N. (Uncollected tax)

The above covers the basic situation for most companys who provide GTL to their employees, but there are some exceptions and restrictions that I have not discussed. Two primary exceptions have to be noted:

·      2% shareholders of an S corporation are not considered to be employees of the corporation. Therefore, the entire worth of the insurance coverage is taxable income. The $50,000 exclusion does not apply.

·      The $50,000 exclusion applies only if the insurance that is provided by the company fits the definition of group term life insurance. IRS Publication 15-B, Company’s Tax Guide to Fringe Benefits contains guidelines regarding what is and what is not GTL. If the insurance does not qualify as GTL, then the cost of the insurance (what the company pays in premiums) must be included in the employee’s taxable compensation.

So if companys follow the guidelines provided above, they should be able to provide employees with group term life insurance and be able to calculate and report the worth of the benefit properly.

Purchasing life insurance for the elderly is a practice that can be weighed down with complexity. At approximately age 65, many employee-sponsored life assurance plans decrease the coverage they are willing to provide to their workers. The basic belief in this course is that life insurance is meant to look after your kids if you die without warning; once you reach a certain age, it is supposed that you will no longer have dependents. Due to today’s social arrangement, where grandparents often raise their grandchildren and the public having offspring much later in their lives, this assumption can be catastrophic to some families.

Term life insurance is one option that you can decide. In term life insurance, the policy is set for a restricted duration of years, usually among 1 and 30. Though normally term life assurance is reasonably priced, be prepared to see higher costs in the case of elder citizens, and with a shorter term, as well.

In considering term life insurance for seniors, one thing you should be alert of is whether or not the policy will allow for renewal after the life of the policy lapses, a new policy will need to be purchased. In looking up life insurance online that will suit your needs, keep in mind that an automatic renewal clause can make things much easier for you. Normally, in case of seniors, an automatic renewal clause comes with the need for a medical exam and a brief lifestyle survey.

Another item to consider when bearing in mind life insurance for the elderly is the cost or premiums. The two options to consider here, much like in buying a house, are fixed and adjustable. While a fixed premium is often a much more eye-catching option, many insurance policies that cover the elderly have costs that are adjusted every few years. It is imperative to keep this in mind and plan appropriately, as the amount that the premium changes can be very considerable.

Even though premiums are certainly a significant thing to consider, they are by no means the only things. One item that you can think about is the acquisition of an eternal insurance policy. Just like the name suggests, permanent life insurance policies are much more stable, and can build up private equity. In light of this, depending on your state of affairs, it might be best to think about a permanent policy, although you can definitely expect it to be more expensive than a simple term life insurance policy in the short term.

If you have the means, a whole life insurance policy, with its added benefit of savings, might be the best fit for your circumstances. There are several benefits to this type of plan, not in the least of which is that it has a wide accessibility for senior citizens.

The imperative thing to do in researching life insurance for the aged is to always look in advance. Think about how the choices you make today will affect you and your treasured ones in the future and plan appropriately!

Securing the roots for a strong financial future for children rank high in the priorities of any parent throughout the world. One of the best ways to go about it is to avail a whole life insurance for your child when they are young. Not only does this give you financial hand in the cause of the unfortunate demise of your child, it will also go a long way in helping your child financially in the times ahead.

The biggest advantage of securing a whole life insurance quote for your child is that you can avail an insurance coverage at extremely low rates. As the duration for the insurance plan is pretty long drawn, most insurance companies try to tap in child benefits plan at a young age and securing a whole life insurance is one the best financial steps you can take for your children. The yearly premiums for these plans are much lower compared to other plans and you can lock in an insurance plan based in these rates for your children, which implies that they have to pay much lower premiums as they enter into their professional jobs.

Most insurance companies also offer an option where the face value or death value of the insurance plan doubles if the child reaches a certain age which is most cases is 21.This is one of the biggest advantage of securing a whole life insurance plan early as once the face amount doubles, you’ll still be paying the same low premium you’ve paid since the first day. In short, your child will now have double the insurance coverage but will still be paying the same premiums as you were paying at the start of the plan.

As with most other whole life insurance plans, a insurance plan for children brings in a host of fringe benefits such as dividends and cash values. As these plans start at an early age, your child will secure the benefits of higher dividends and cash values once they enter into their professional carriers or higher education and this will go a long way in easing their financial burden at a crucial stage. Additionally, the cash value of the plan would have increased in this time span and your child can always have an added option of withdrawing the money or securing a loan on the security of the insurance plan in case of emergencies.

A whole life insurance plan is a financial guarantee to your family against any potential mishaps or disaster. There are various different plans or types of whole insurance policies and often is the case, that a whole insurance overage is sought out without proper understanding of the basic fundamentals behind it. With a view to secure the best possible whole life insurance plans at the cheapest possible rate, let us review the six major whole life insurance variations out there in the market.

1.Non-Participating: - This is the most simple and risk free plan where all the future liabilities are determined by the insurance company at the time of agreement. The insurance actuaries determine the death values, cash value and the premium rates of the plan and they cannot be altered once the plan is made. The insurance corporation bears the loss in case the estimate on death claim is high while it stands to make a profit it the estimate is lower than the ongoing market rate.

2. Participating: - This insurance plan comes with it’s own set of risk and benefits. The insurance company and the customer tie up a deal in which the premiums and the cash back benefits are decided by the profits of the company. While this may not be a suitable plan for those interested in a plain vanilla insurance coverage, a participating or at par plan is an option to look out those who are interested in availing much more from an insurance plan. It is always advisable to side with growing or established companies for this plan so that you can be assured of long-term benefits.

3. Intermediate Premium Plan: - An intermediate premium plan is akin to a non-participating plan expect that the premiums vary every year. However, the company lays down a guarantee that the premiums will never cross a certain ceiling value. This plan may be considered by those just starting out their professional careers and in anticipation of better career prospectus in the times ahead.

4. Economic Whole Life Insurance Plan: - It is a blend of whole life insurance and term life insurance, in which a portion of the dividend may be used to avail additional insurance. This can be a good option if the actual dividend in higher than the estimated one as you end up getting a higher death claim value. However, if the actual dividend turns out to be smaller than the estimated one, you will end up losing a portion of your death claim value.

5. Limited Pay Plan: - A limited pay plan is a great option for those looking for an insurance plan that will give them life long coverage without placing a burden in the latter years. A limited pay plan requires an individual to pay premiums only till a certain age after which he/she can enjoy dividends and life long coverage without any further payment. Those starting out early should consider this option or those with high professional incomes, as the premiums are generally high as compared to a non-participating plan.

6. Single Payment: - This plan requires a single one-off payment from an individual to avail life long insurance with the normal fringe benefits.  The value of this single one off payment varies according to age, past medical history and drinking, smoking and diet routines. This plan would serve good for those looking to settle their insurance payments at one go without worrying too much about future payments.

The vast number of options and flexibility attached to a whole life insurance plan makes them a viable option to consider for those looking for a strong financial plan that provides them insurance coverage all through their life. So, go ahead and secure your loved ones with a tailored made whole life insurance coverage

 Life Insurance coverage is considered as the root or foundation of a strong and secure financial plan. As you scan and evaluate the insurance market for proper choices, you should know that there is one solution, which guarantees reliability, predictability along with financial dividends. That plan is called the whole life insurance plan, which is generally considered by most insurance experts as the most comprehensive and wholesome insurance plan. With life long financial coverage to your family from any potential mishaps, a whole life insurance plan is undoubtedly the insurance plan to look up to securing the financial future of your family.

One of the primary question or query that one may have before settling down on an whole life insurance plan is how a financial plan can last a lifetime in a world of ever changing economic dynamics. The answer for this lies in the fact that unlike many other insurance plans, a whole life insurance plan is immensely flexible. It provides a flexible framework for long term planning in which a customer can choose amongst several options and make adjustments over a period of time to suit his/her needs.

While there are many other insurance plans such as a term life insurance coverage to choose from, it is reliability and stability of a whole life insurance plan which makes it the undisputed plan to bank upon for your insurance needs. The premiums for a whole life insurance plan will never increase over a period of time unlike term life insurance plans where they increase as you age. On the contrary, you can also make use of the cash value acquired by your early premiums to avail discounts on your future payments. In addition, you are secured for life and do not have to worry about renewing your plan every other year. As long as you pay your premiums on time, you can remain assured that your family will avail the complete face value of the plan.

Another thing to be kept in mind which going in for a whole life insurance plan is that they not only provide you an insurance cover but are also a strong tool of financial investment. You insurance gains cash value over a period of time and you will be rewarded with dividends from time to time. Besides, you can always withdraw money by forfeiting the plan, which is not possible in the case of a term life insurance plan. This along with the easy availability of loans on the security of your insurance plan makes them a viable option in times of financial emergencies.

With so many fringe benefits coupled with a robust insurance plan that will be there with your family through thick and thin, availing whole life insurance coverage is a no-brainer. So, hook up to the Internet and avail a cheap whole life insurance quote that will go a long way in protecting your family in case of any unexpected disaster or tragedy.

While availing a whole life insurance quote is a simple process in which just a basic details are solicited, most customers often miss out on the fine points of a life insurance plan and end up paying far more than they should. While an insurance coverage is an absolute must in today’s world, one should also keep budget considerations in mind before coming up with an appropriate plan for the financial security of his/her near and dear ones.

The best time to pick up a whole life insurance plan is in the mid 20’s as the premiums will be generally be much lower and you can also be certain that the insurance plan will build up cash value as you age. Some of the major aspects of a whole life insurance plan to be kept in mind are liability values offered, expenses and commissions, dividend value and the guaranteed cash value. Your yearly premiums will almost always depend on these factors along with general health and well-being. A good healthy body will always aid you in getting cheap insurance plans. Insurance plans take into account certain factors of your general well being such as your smoking and dietary habits and even a simple task such as quitting smoking can cut down your insurance premiums by a large amount.

While availing an insurance quote online, one should always keep past medical history records in hand as you would most likely be asked about your age, working conditions and your smoking and drinking habits. In general, life insurance premiums are costlier for those living in cities as compared to rural habitations. Additionally, your insurance premiums will also depend on certain other aspects such as the fringe benefits you desire, your past history in paying up to date and the loans taken on the insurance plan.

One of the best ways to avail a cheap whole life insurance plan is to hit up the Internet. There are many insurance agencies online that give you the luxury of comparing whole life insurance plans of almost all major insurance bigwigs.  This enables to you check on salient features of most plans so that you can choose a whole life insurance plan tailor made to your needs. Besides, most insurance companies offer a small discount to the tune of 5-10% on buying a plan online as it helps them cut down on agent fees.

Moreover, leading a healthy lifestyle and cutting down on smoking and obesity can help you cut down on your insurance costs by nearly 50%. That in addition with buying an insurance coverage early on in your life can help you get the very best out of your whole life insurance plan without comprising on the various securities and benefits offered by it.

Life insurance companies are growing in numbers in the United States and everywhere else, for that matter.  One can credit it to the flourishing life insurance industry in the country.  It can also be attributed to the rise of the Internet, as many individuals can get vital information on life insurance policies from websites of different life insurance companies. Any individual, for one, can get a life insurance quote online.  This accessibility has helped the life insurance business experience record breaking growth in the past years.

Another advantage of the Internet is that it allows accurate computation of life insurance quotes on the part of the life insurance companies.  Now life insurance companies no longer need to hire a lot of agents just to give quotes to potential life insurance policy holders. A person just has to go to a certain website and can get a life insurance quote in a few minutes. 

On the part of a person, it is also easier to get reasonable life insurance quotes.  With the Internet they can shop for websites and compare the life insurance quotes offered or provided to them. 

For those who want to get affordable life insurance quotes, it is recommended that they get at least four quotes provided by different life insurance firms.   The life insurance firms that they consult through the internet should also be reputable and reliable.  Having a financially stable firm can give added security to potential life insurance policy holders. They can also get quotes at discounted rates from particular firms.

Those wanting to get a cheap life insurance policy have to consider certain things in order to save a good amount.  Life insurance cost is dependent on various factors like the health, lifestyle, and age of the policy holder. 

There are also types of life insurance from which individuals can choose from. There’s term life insurance which is an economical solution, since it offers insurance without requiring any hard cash value.  ON the other hand whole life insurance offers security with hard cash value.  Then there’s universal life which mixes the insurance component of whole life insurance with the flexible premium amount. 

But whatever the type of life insurance one is interested in, it is recommended to determine too the financial strength of the life insurance firm offering life insurance quotes.

These are just some of the factors that one has to consider in getting an affordable life insurance quote.

While life insurance is considered a practical investment, there are many questions on the practicality of having a life insurance for children.  First children do not earn any income at all, so there is really no need income to guarantee in case of an untimely death. Most financial experts argue that it is more practical to buy a college plan instead for children, considering the rising costs of tuition fees these days. 

But there are good grounds why life insurance for kids is a practical choice.  First, a life insurance can help a family offset the expenses in case of the untimely death of a child.  Burial and funeral expenses are skyrocketing these days, and when you compare these costs against the amount involved in purchasing life insurance policy for a child, you would be surprised to find out that getting a life insurance policy is less expensive. In the final computation having a life insurance policy for children is a more sensible and practical investment.

There is also the issue of medical debts.  Children are prone to illnesses.  They often get sick and hospitalized.  And when disaster strikes they can get afflicted with serious illnesses. When you sum up all the expenses that a kid could gain while having a fatal disease, then it could mean that having a life insurance is a more practical choice for families. 

Getting a life insurance policy for a healthy kid is also relatively cheap.  In the unfortunate event that the child gets afflicted with a fatal medical condition, then the parents may find the medical costs too exorbitant.  Thus companies providing juvenile life insurance policies stress that getting a coverage for a child can be a more cost effective way in the event of very serious medical condition.

At the surface getting a life insurance policy for a child is not a practical investment.  This stems from the fact that individuals look at life insurance for kids in the same way they look at life insurance for adults.  But this is a wrong way of assessing things.  Life insurance for older individuals work in a different way compared to life insurance for children.

But a close look at the benefits of life insurance for children will reveal that there are indeed advantages of purchasing one. Parents will understand that getting a life insurance policy for children will help ease worries regarding their little ones. 

Have you ever thought of the reason why long-term life insurance has become a necessity in today’s world?  Basically, life insurance protects us and our family from future expenses.  There are unforeseen events that could happen, and worse, leave us hapless.  We need to protect our loved ones and ourselves.  The need for protection is the foremost reason why many people are purchasing life insurance policies.

Let’s cite an example.  A young couple is contemplating on getting a long term life insurance policy.  What could be their reasons?  First, they need to protect each other.  They want the best for each other, which they cannot stand imagining or fearing what would happen to the other in case of the untimely demise of one of them.   Aside from giving the basic things in life like food, shelter, and clothing, a husband needs to be sure that his partner would do well just in case he dies prematurely.  So they invest in a life insurance policy.  This long-term life insurance policy is their assurance that no matter what happens to the husband, the wife would continue on with her life. 

Then the couple would have children.  The couple realizes that their life is no longer about themselves.  Their life now centers on their children.  They would do everything to give a bright future to their kids.  They would work hard so that they can enroll their children to the best schools.  They would strive to make sure that they can provide well for their kids.  Of course, they need to be sure that in case they die early, their kids will have money to support their education and daily needs. So they purchase a life insurance policy, as their assurance that their kids will get something in case the parents die early. 

Let’s say the children have all grown up.  They are now established in their respective careers. Now the parents will continue with their lives, enjoying the latter stage of it.  The policies they have acquired were not used since there was no untimely death.  Now should the couple keep the policies? Of course, since the policies will guarantee financial security for the couple.  The policies will also help tide them over during times of health problems, to support their various medical needs.

Business owners should also get a life insurance policy so they can be sure that their business continues even after their death. Because business continuation is a crucial part of your plans, you need to have a policy that will cover all the bases when it comes to the time of death. This is especially important if you have a partner, what happens when that partner dies? Will his/her spouse be your partner?

All this information plays a major roll in your future planning, please feel free to call us with your questions.

Are you applying for a life insurance coverage? Then chances are you want the life insurance company to give you a lower risk.  How do you do that? There are certain proven steps to lessen your risks.  At the same time, you also need to find out how to get the appropriate life insurance policy offer in the market.  Let’s discuss how you can achieve both.

First, stop smoking.  Being a smoker will greatly affect your risks, and subsequently your rates. We all know that smokers are very much vulnerable to being afflicted with fatal health conditions.  Smokers too are more likely to die young.  If you smoke and you apply for a life insurance coverage, you are likely to get a high risk, and consequently, higher rates. You need to quit smoking and then re-apply after a year. You will notice that your rates will be reduced by at least 50 percent.

You also have to shed unwanted pounds.  Overweight people are more likely to get higher rates than those fit and healthy.  The body mass index or BMI is one vital factor that life insurance companies consider when evaluating the application of a person.  As such the more overweight a person, the higher risk he or she gets.

If you have other insurance policies with a company, then you can get substantial discounts if you sign up a life insurance policy with them.  This is what most companies offer as a multi-policy discount.  So in case you have a health insurance policy with a certain company, ask if they provide multi policy discount to the life insurance policy you are contemplating to get.

Then ask your life insurance agents if you are qualified for some discounts.  You might be surprised that you are qualified for a discount especially if you purchase other policies with them.

Make sure that you have an outstanding credit rating.   Companies are more likely to give you higher premiums since you have a good track record in paying off your obligations.  Companies on the other hand subject people with poor credit ratings to higher rates since they see them as bigger risks. 

Finally, you will save a lot if you shop around.  Try to get as many quotes as possible. Then compare the quotes.  You can also request quotes from say, five websites, so that you have a lot of options to choose from.