How to Compare Life Insurance Quotes
Life insurance is an integral part of any estate plan and an absolute necessity if you have any dependents. Luckily, these days it’s easier than ever for you to find and buy life insurance. The Internet offers many resources to get life insurance quotes and the tools to compare them. Some websites allow you to get multiple life insurance quotes with one application. Alternatively, you can still shop for life insurance with insurance agents and directly with the companies you are familiar with.
In order to get the best coverage for the best price, you need to comparison shop. It’s best to get several life insurance quotes from different companies and compare them. There are two different types of life insurance, and they are very different. Term life insurance is the most popular type of life insurance. Term life insurance is coverage that lasts for a specific term of years and then expires. Permanent life insurance, on the other hand, builds cash value and matures over time. Permanent policies combine insurance with an investment opportunity. When comparing life insurance quotes, it only makes sense to compare like policies, as many different variables go into determining a life insurance quote.
If you’re shopping for term life insurance, the most important things to consider are the cost of the premium, the length of the term, and the rating of the insurance company. Some term life policies have level-premiums, which means your payments will never rise over the length of the policy. Other policies have premiums that increase as you get older. The length of the term of the policy affects the cost of the premium. Policies with longer terms usually cost more because there is a greater likelihood of a claim being filed before the policy expires. You also have to consider if and when additional health examinations are required to maintain coverage. Should you become ill, you may not be able to renew coverage.
When comparing permanent life insurance policies, you also have to pay attention to the premium and the reputation of the insurer. A permanent life insurance quote, however, also has the added investment component that you have to consider. Some parts of permanent life insurance are guaranteed, and some are not. This can make it more difficult to determine which life insurance quote is better. There are several types of permanent life insurance. Whole life, universal life, and variable life are the three most common types. Whole life has the most guarantees, as the premium and minimum cash values and death benefits are guaranteed. Universal life has flexible premiums, however, though there is usually a guaranteed maximum premium. Variable life offers the most flexibility because the insured chooses the investments for the policy, but you cannot rely on a guaranteed cash value. Permanent life insurance is usually only recommended if you plan on keeping the policy for 20 years or more. Otherwise, there are better ways to invest your money and term life insurance will suffice.
No matter what type of life insurance you choose, picking the lowest priced life insurance quote you receive can be a big mistake. Not all insurance companies are made equal. Several companies including Standard & Poor’s, A.M. Best, and Moody’s among others all rate insurance companies based on financial strength and several other factors. These ratings will help you choose an insurer that will process and pay out claims in a timely fashion. Moreover, it’s important to choose a company that will likely remain in business for the duration of your policy.