Shopping for Life Insurance Quotes

With So Many Options, How to Make the Right Choice?

Couple reviewing the Cash Surrender Value of Life Insurance

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If you are shopping around for life insurance, there are a few key things to consider that can save you money, while protecting your family or the beneficiary of the policy. You might be tempted to look at the dollar amount as the main factor when comparing different life insurance quotes; Especially if you think about how long you pay for life insurance and how much of a difference a life insurance quote of $5 per month would make over a 30-year term life insurance policy. However, there are other things to consider as well, like where the money goes when you pay your premium. Imagine taking that figure ($1800) and think about how much more that would be if you invest it. It really adds up! When comparing life insurance quotes, you want to look at your long term goals, short term affordability and whether you want to use life insurance as a whole life solution or a temporary one.

Options to Shop For Life Insurance:

Depending on what life stage you are at, you will have different options for your life insurance that may or may not make sense. Learn more about who needs life insurance with examples here.

Advantages of Different Types Of Life Insurance

There are several different kinds of policies to choose from, these are the basics:

  1. Life insurance that lasts only a limited amount of time and pays out upon the death of the insured. This is the cheapest form of life insurance: Term Life.
  2. Life insurance that will last longer than a specific term is called permanent insurance. There are essentially several types: whole life, universal life & variable universal life. Permanent insurance is more expensive than term because there is a savings component that allows you to build cash value.This type of policy may offer you good flexibility if you ever need to borrow money from your policy or use your life insurance policy as an investment tool with cash values. Whole life insurance or Universal life insurance may be a good choice in these cases.

5 Things To Consider When Comparing Life Insurance Quotes

When it comes to shopping for life insurance, every dollar counts. Let's look at a few ways to shop around for the best life insurance quotes so you can start saving thousands of dollars by making a smart choice for your life insurance policy.

1. Determine Your Needs:

First, you need to have a good idea of just how much insurance you need. If you have not taken the time to research your needs then you will not be able to make an informed decision when the insurance agent or company that you are buying your insurance from gives you the quotes.

If your employer has a group benefits plan, find out how much life insurance you can get as part of that plan and keep this in mind as you purchase additional life insurance products.

2. Pick Your Type of Life Insurance:

Term or Whole Life? These are the two basic types of insurance and vary in how they work. Research these choices so again, you can make an informed decision when acquiring your life insurance quotes.

3. Shop Online and Locally for the Best Life Insurance Quotes:

When determining where to get your life insurance quotes, take the time to contact many companies. or use a broker who has access to many options to offer you. Of course, the bottom line price should not be the determining factor in your choice, but using the cost of life insurance quotes is a good place to start comparing. Be prepared for medical questions and a medical exam and don't worry... just because one company may deny you that does not mean another company will. Also, make sure to know the financial strength of your chosen companies to compare.

4. Check for Extra Discounts:

Once you have found a handful of companies that have similar low life insurance premium quotes, dig deeper and compare their particular life insurance products. One good comparison area is to evaluate the additional savings features offered by each company. These include discounts for automatic drafts, organization memberships, and multiple insurance packages from the same company (life and disability).

5. Understand the Life Insurance Policy:

When shopping for your life insurance policy quotes and comparing companies, make sure you are comparing apples to apples. For example, some life insurance companies may give you a 3-month quote price and some may give you a 6-month quote price.

Features to Compare Life Insurance Policy Quotes:

  • fixed premiums (premium stays the same throughout the policy)
  • return of premium (your premium will be returned at the end of the policy if unused),
  • guaranteed renewable policies (you will be able to renew the policy after it has expired),
  • the exclusions (benefits that are not included).
  • If there is a medical exam
  • when the policy comes into force after you submit your application
  • Also, be aware of the "free look" time. This is the time in which you can change your mind after acquiring the policy, usually somewhere within 10 days.

Help Figuring Out What Kind of Life Insurance To Buy

Getting the help of a financial advisor or life insurance professional to evaluate your needs can help you avoid making a mistake on the choice of policy you buy.

Life insurance brokers usually have access to many different life insurance policies and can help you compare one quote to another.

The person you are working with should be a licensed professional, helpful and open to answering all your questions. Make sure to find someone you are comfortable working with. Asking friends and family if they have a trusted advisor can also be very helpful and will get you on the right track to making good choices. Learn more about how to choose a life insurance policy, or change your life insurance policy here.

Related: Best Whole Life Insurance Policies