How to Compare Life Insurance Policies Effectively
Reader’s Question:
How do I know I have the best life insurance coverage for me? I want to compare offers but I don’t have the time (and frankly, the will) to spend hours on the phone calling different life insurance agents. Is there any easier way to do this?
Ricardo
Tallahassee, FL
The good news is that these days you don’t have to spend hours on the phone talking to different agents. You won’t even have to hire a broker anymore. The Internet can be a very useful tool to help you find the best life insurance coverage. Here are some useful tips for you:
Step 1: Start by Knowing the Kind of Insurance That Suits You
There are many kinds of life insurance out there, but they mainly fall into two categories: Term (temporary) coverage and Permanent (whole life, universal life, etc.) life insurance. The former is a great choice for those only needing coverage for a certain period of time only whereas the latter is great for accumulating wealth. Find out which one fits your needs.
Step 2: Calculate the Amount of Life Insurance You Should Buy
Factor in death expenses, costs of living for your survivors for at least the next several years, and enough money to settle long-standing debts as well as any future finances you’ve had in place for your beneficiaries (e.g. college tuition).
Step 3: Look for the Best Companies
Independent rating agencies (e.g. Moodys, A.M. Best, J.D. Power) can help you find the best life insurance companies to go with. These agencies rate the performance of different companies and allow consumers the chance to see which carriers are the best in your state/area.
Step 4: Compare Life Insurance Quotes
Using insurance comparison portals (like this website) can maximize your chances of getting the best rates. You can run a free quote check and get the latest offers coming from many different insurers. This can save you a lot of time and effort.