Protecting your family is the most important thing anyone can plan for in their lifetime. Shopping for life insurance can be a confusing and frustrating process. As an insurance agent, I am well aware of the details a client needs to know to make the decision easier. In this article, I will offer practical tips on how to buy life insurance easily.
Look for a company that has at least an AA rating or higher. Independent agencies such as Moody’s and Standard & Poors rate insurance companies on their financial strength. There is little or no difference between two companies with exactly the same financial rating. You should feel comfortable with any company that has an AA rating or higher.
When it comes to pricing, don’t be fooled into thinking that insurance agents determine prices and that you can negotiate. Prices are set by insurance companies and depend on age, gender, health, smoking, family history, activities such as scuba diving, car racing, foreign travel, etc. Insurance agents may not offer customers discounts or price incentives. Insurance companies offer different versions of the same product. You will often see what appears to be the same product, but at a lower price. Usually the reason for this is that the lower priced policy offers a weaker guarantee when the policy is not guaranteed for the full term. For example, a 10-year policy that is only guaranteed for the first 5 years.
When choosing a policy, there are important details to consider, such as selecting the warranty period, determining whether or not the policy is convertible, and whether rollover is available. The guarantee period determines how long the premium remains at a level rate. After the guarantee period ends, the premium will increase. It’s important to determine how long you’ll need coverage and choose accordingly. Guaranteed autonomy terms from 1 to 30 years.
Most, but not all, insurance companies will offer the ability to convert your term policy to a permanent policy for a set period of time. During this period, if you choose to convert your policy, you are not required to prove medical insurability. You will only have to pay the new premium at your advanced age. The period of time you have to convert may be the warranty period or less. It’s important to check the policy description or ask your agent to make sure.
Re-entry refers to the point at which you want to extend or purchase a new policy with the same company. It is important to know if you will have to take a new medical exam or just pay the new premium. All companies have different rules and you should understand them before making your decision.
Another important consideration is choosing your beneficiary. It’s usually an easy decision when it comes to your spouse or partner, but not if there are minor children in your family. Minor children named as primary or secondary beneficiaries must have a designated guardian/custodian to handle and distribute funds in accordance with state law.
Choosing a life insurance policy doesn’t have to be a difficult process. It also doesn’t have to be done alone. Today, you have the option to work with a local agent or shop online. Internet websites such as CompleteLifeQuote.com [http://www.clquote.com] allow you to search hundreds of products and give you the final decision on which one to order. The companies work with you to process your application and send your policy once approved. Customers can expect to save money this way simply because they can choose for themselves rather than have an agent push your company’s products. I hope this article has shown you that making this important decision does not have to be a difficult process. Best of luck!
mark f simmons
CFO, Complete Life Quote, Inc.