If you’re looking for life insurance that fits your lifestyle and budget, the easiest way to shop is to obtain life insurance quotes from a number of different providers, then compare those life insurance quotes against each other to see who can offer you the most coverage for at the most affordable rate.
Still not sure where to start? We’ve put together this step-by-step guide on life insurance policy quotes and how to compare them to get the most for your money. Let’s dive in!
Step 1: Decide What You Need
This step seems straightforward, but it requires the most thought and planning from you, the potential policyholder. Here are some questions to ask yourself to help narrow down what you need from your life insurance policy.
- Why do I need life insurance? First, ask yourself what the intention is with your life insurance policy. Most people secure a life insurance policy to cover funeral expenses upon their death, but if you have additional debts that will need to be paid off upon your death, you may want to factor those in. The idea behind life insurance is to leave your loved ones with as few financial burdens as possible, so figure out exactly what you want your policy to cover in the event of your death and build your policy around that figure.
- How much coverage do I need? The question you asked above should lead you to the answer of how much coverage you need. For example, if you want your life insurance to cover not only your funeral expenses but your remaining mortgage as well, you’ll need a policy with a higher death benefit amount so your beneficiaries don’t have to worry about paying off those additional debts.
- How much can I afford to pay in a monthly premium? Finally, decide how much you can afford to pay each month towards your policy. Just like in other types of insurance, your monthly payment is known as your premium, and you need to pay it every month in order to maintain your coverage with no lapses. If you are relatively young, you will most likely pay a lower premium, and that premium will increase the older you get.
Once you’ve asked yourself these questions, you’ll have a rough idea of how much coverage you need from a life insurance policy and how much you can afford to pay for life insurance. Next, it’s time to think about the type of policy that best suits your life situation.
Step 2: Choose Your Policy Type
The two main types of life insurance are term life insurance and whole life insurance.
Term life insurance provides coverage for a set period of time, typically anywhere from 5 to 30 years. This type of insurance guarantees a death benefit payout if the policyholder dies within the coverage period. Your monthly premium will vary based on the amount you select as a death benefit payout, but this is a great option for people who just want to cover specific debts or expenses upon their death.
Whole life insurance is different in that there is no term period. As long as you’re making your monthly premium payments, your coverage stays in effect. Plus, this option also has a cash value benefit that functions as a savings account and gathers interest. This cash benefit can be used while the policyholder is still alive, either as a loan or withdrawal, to cover unexpected expenses. Whole life insurance also provides a death benefit payout for beneficiaries, making it a multi-faceted and highly effective option, but keep in mind that this type of insurance tends to carry higher premiums.
Step 3: Secure Life Insurance Quotes from Several Providers
With all the knowledge you’ve obtained during steps one and two, now you’re ready to gather and compare life insurance quotes.
Most insurance companies offer online quote options, so you can plug in all your information and get a quote within a few minutes. However, if you need additional information or prefer to speak to a human and ask questions in real time, you can also get quotes over the phone. In general, insurance providers will want to know your age, gender and basic medical history to give you an accurate quote. Be sure to keep close track of what each provider can offer you in terms of coverage and premium rates.
Step 4: Choose Your Policy
Now that you’ve accumulated life insurance quotes from a number of providers, you can compare them all side-by-side to see who can offer you the coverage you need at the most competitive cost. And voila! Now you can make an informed choice on your policy.
Want to learn more about life insurance policies or get a competitive quote today? Contact Americo Senior Life today.