A Guide to Buying Life Insurance Effectively
Reader’s Question:
I know there are tons of life insurers out there, and that’s the problem. I have no idea how to begin to find a good life insurance policy. Any tips?
Carlos
Eugene, OR
For many people the problem is not that there aren’t many insurers to choose from, but that there are so many companies offering life insurance that it can be quite overwhelming. This is especially true for first time life insurance buyers. So how do you get to choose a good life insurance policy? Here are some tips:
Step 1: Get a Paper, Write down Your Finances
First, you’ll need to determine the right amount of coverage to purchase on a policy. This is done by estimating the financial needs of your family/dependents or beneficiaries should you suddenly pass away. Include the following: Cost of living expenses, outstanding debts and mortgage, and the future financial needs of your dependents for at least the next decade.
Step 2: Know the Right Kind of Life Policy for You
Next, choose the right kind of coverage. Do you need coverage for just a specific period of time? (e.g. while raising a family). If that is so, then term life insurance is an excellent choice. Want lifetime coverage and a way to accumulate wealth in the long-run? Check out whole life insurance policies.
Step 3: Shop Online
Run a free life insurance online quote using insurance comparison portals (like this one). Be able and compare the latest deals coming from lots of different companies in order to find the best-priced policies available.
Step 4: Check Out Online Life Insurance Resources
There are also many websites that help you become a smarter life insurance buyer. Check out independent rating agencies like Fitch, Moodys, and A.M. Best to find out the best performing insurers today. Visit your State’s Department of Insurance as well to get additional information about getting the right policy for you.
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