John,
every company has certain categories that they specialize in. The actuaries determine how rates are set, how they change from year-to-year.
When one considers all the information, the actuaries have to consider the commission level, the lapse rates (the rate that people stop paying their policies), the interest they expect to get. all these things vary from company to company. And the rates also can vary depending on how large of a policy you are entertaining.
But companies have to be competitive with one another. Sometimes, some companies specialize in certain risks, and they are able to offer better rates for a certain subcategory. (For example, cancer recovery patients).
They build rates for all different types of plans, ages, sex. They might excel for female nonsmokers age 35-40, but be a poor choice for male nonsmokers 25-30, for example. Your agent may or may not be able to explain how they come up with their rates (I suspect not). He/she may be able to tell you if they have other products that are available for someone in your category.
Also, i don’t know how well connected Knights of Columbus is to the organization you are familiar with.
As long as you are going with a reputable company and have no concerns with getting paid back, then I suggest you go with the cheapest rates. (Check out various companies with
www.AMBest.com (or other rating companies). If I were that concerned with supporting KnightsOfColumbus, then I would separately make a donation to their cause, and not mix up your financial life with their cause - because you would then be agreeing to pay them more for each of the next X years (depending on the term of your insurance).
Much of your premium on term insurance goes to paying the commission on of the agent and agency. (That’s okay, they do work for it, but just so you know - a full service agent is going to have higher rates than a brokerage firm that represents multiple companies). But agents also make much higher commissions in the first year (because that’s when they do a lot of their work getting the business). But some agents will try to get people to change their policies often from one company to another (sometimes because then they get first year commissions again). So, find an agent your trust. - Talk to other people- but keep in mind that the company that is best for your parents may not be competitive at your age.
