There are many variables that go into choosing a life insurance policy. The following are five key points that must be considered during the decision process:
1. How much life insurance is needed?
This is the most important variable in choosing a life insurance policy. We make it easy because you can determine how much life insurance you need by visiting our Need Analysis Calculator. This considers such variables as how much income should be replaced, whether you want to pay off debts (such as mortgages or lines of credit), how much money is needed to cover a child’s education, and many other concerns.
2. What type of life insurance policy is needed?
Generally, life insurance policies are divided into two categories: Term Policies and Permanent Policies. Term Policies start off lower, but then increase as the insured gets older, while permanent policies see the premiums start off higher, but remain level for the life of the policy. Some permanent policies can be paid-up after a limited number of years, or can build cash-values.
3. Does the insured qualify for preferred rates?
Individuals who are in excellent health and have a very good family health history can qualify for preferred rates. This can save the applicant up to 30% on most Term Policies, and up to 10% on Permanent Policies. It should be noted that not all companies offer preferred rates and only a handful offer preferred rates on permanent plans.
4. What type of underwriting requirements are needed at the time of application?
Applicants who have health issues may want to consider what type of underwriting requirements are required for life insurance. Traditional life insurance policies generally require the insured to complete a health questionnaire and medical test, but simplified issue policies are available without medical tests and with only a short series of health questions. These policies have higher premiums, but they can be a good alternative to individuals who have health issues that would normally disqualify them from traditional life insurance.
5. How do you find the right life insurance company?
In considering life insurance companies, one variable that the insured should always check for is whether the company is a member of Assuris. Assuris covers applicants in the event that the insurance company becomes insolvent. They protect and cover the greater of either 85% of the policy face amount or $200,000. When looking at Term Life policies, the applicant should see what type of conversion features are available and what type of permanent plans the policy can convert to. Some companies have higher quality Term Policies, but a weak Permanent Policy selection. This results in fewer options should the insured decide to convert.
For more details on how to choose the best life insurance policy, please contact us at 1-866-899-4849, or visit our or visit our Instant Quote Page.
