Tips from the Pros: How to Compare Life Insurance Rates
It’s incredibly important that, when shopping for life insurance rates, you are well-informed about all options that may be available to you. The very best way to become informed is to ask questions and receive straightforward, honest and comprehensive answers.
Following are the top questions you need to ask in order to effectively compare term life insurance rates:
For How Long Do I Need Coverage?
You will have the option to determine a period of time for which your policy will be in effect. The most common periods of time, or terms, for coverage are 10, 15, 20 and 30 years. The longer term you choose, the more expensive your premiums will be.
How Do I Gauge Expenses?
You must think not only about your current expenses but also your future expenses in order to choose the best coverage for you and your family. For example, if you currently don’t own a home but will in the future, you will want to figure in mortgage payment expenses – you’ll want that covered in the event benefits are paid to your beneficiaries during the term of the policy.
What Do I Include to Be Covered in a Policy?
You will want a policy that is large enough to pay off medical bills, your house, credit cards, and the like in the event you were to pass away during the term of your policy. Many financial experts suggest that you take your annual salary and multiply it by ten, or more, depending on your age. Another popular method is to calculate your expenses that you would want the policy to cover. When you compare life insurance rates and coverage amounts, either way will give you a good idea of what your beneficiaries would need to be taken care of.
Aren’t the Cheapest Policies Going to Be the Best for Me?
In some cases this is true. If you are comparing similar policies (same term, same guarantees, etc.), we often recommend selecting the least expensive A-rated company. Term policies are very similar from company to company and there isn’t much you can do to improve one. Therefore, go for the least expensive policy from a highly-rated company.
How Do My Age and Health Affect My Coverage and Premiums?
When you compare term life insurance rates, you’ll find that different companies and plans offer a variety of options depending on your current age as well as your current state of health. It’s important that you are completely honest about your health when shopping for a policy – you don’t want a company citing an exclusion and not paying your beneficiaries because of a health condition you had that you did not reveal. Your age works in much the same way – depending on how old you are when you take out a policy, you might pay a higher or lower premium than someone who is of different age.
Choosing a policy to cover your beneficiaries in the event of your passing is something that is of the utmost importance; it pays to take your time in doing careful research, talking with experts, and obtaining several quotes before you decide on the best policy for you. To accurately compare term life insurance rates, take note of the above questions, answers and suggestions, and you’ll be well on your way to ensuring your loved ones will really be taken care of once you are gone.
In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs. Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client. I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so. I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure. Please feel free to contact me at your convenience.