Apples to Apples: How to Compare Life Insurance Policies
In order to obtain the best value for your life insurance dollar it is imperative that you take into consideration the following when evaluating life insurance policies:
1. Policy Features
3. Carrier Rating
Be sure you are comparing apples to apples.
Term of Coverage - The number of years you want to insure yourself for. The longer the term the lower your monthly premium will be. The minimum term is 5 years with the maximum being 55 years. Your annual premium should be fixed for the term of coverage you specify.
Product Type - Are you comparing a term policy to a term policy or to a permanent life policy? Naturally a straight term policy will be less expensive than a whole, universal or variable policy that contains a death benefit and a savings component. For more information on the various life insurance products please click here.
Death Benefit - The amount of money paid to the beneficiary if the insured dies within the term of coverage. The higher the death benefit, the higher the monthly premiums.
Yearly renewable or level premium term life insurance - Yearly renewable term life insurance has premiums that are initially low; however, the premiums increase substantially as the insured gets older. These plans have diminished in popularity due to the introduction of level premium term life insurance. Level premium term life insurance has premiums which remain level over a specified period of time. These plans have premiums that remain level for a period of 5, 10, 15, 20, 25, and 30 years. After the initial level period expires, the annual premium increases each year, subject to a guaranteed maximum. Although the initial premium of a level term policy is higher than the initial premium of a yearly renewable term policy, the level term policy generally costs much less over a specified period of time.
Price is certainly an important factor when you're selecting a life insurance policy. For some people, in fact, it may be the most important consideration. Nevertheless, if you want to find the best policy at the best price, you've got to look beyond the narrow issue of cost. You should pick a secure insurance company with a good reputation, evaluate and compare policies to obtain the correct level of coverage, and then shop the carriers in your state for price. To do this on your own would be extremely time consuming - MyInsuranceQuotes.com makes it easy
In general, a life insurance policy is only as good as the company that wrote it. For this reason, choosing a good insurance company is at least as important as selecting the right policy. You should consider both qualitative and quantitative criteria when evaluating companies. While MyInsuranceQuotes does not personally review Insurance carriers, we provide the following links
Generally speaking, these ratings are based on such factors as a company's financial soundness, its record of paying claims in a timely fashion, and the percentage of policies cancelled in a given year. Most of these agencies rate the insurance companies on a letter grade basis.