Life Insurance Shopping Checklist
Posted on May 6, 2008
The number one rule when you are buying life insurance is to shop around! We ran quotes on ten of the top life insurance companies for the same individual, and the same 20 year term and $100,000 policy, and we found that the premium varied by as much as $300 a year!
Before you shop, think about your needs. Most of us need more life insurance while our children depend upon us for food, clothing, and education. Then, after the children have left to support themselves, we only may need several thousand dollars to cover final expenses like funeral costs and debt settlement. Or we may use life insurance as a vehicle to pass wealth on to the next generation, and so we want to keep a higher dollar policy in force our whole lives.
Term Life Insurance
When parents or a married couple buy life insurance to make sure that a family will be able to keep their home and live comfortably if one of them should pass away, they usually buy a term life insurance policy. They think about how many years are left on their mortgage and how many years their children will need support. To calculate how much life insurance they need, they may multiply their incomes for the span of that many years, or perhaps they add up their debts and estimate future education costs.
Whole Life Insurance
Nowadays people usually purchase traditional whole life insurance policy in smaller amounts. Since the policies are meant to cover an individual for their whole life, instead of a set term, they cost more per dollar of coverage than a term policy costs. Final expense policies are popular uses of whole life insurance policies.
Universal Life Insurance
These types of policies are also meant to cover an individual for their entire life, but combine elements of life insurance with investments or savings. They may offer market rates, and over time, their cash value is intended to grow. The face value of the policy can grow as well. Sometimes universal life policies are purchased to provide retirement income, as well as pass money onto the next generation. Some families even purchase a universal life insurance policy on a young child, and they intend to cash in a portion of the policy to help pay for college. If the policy can still remain in force, they will give the remaining value to their child as a life insurance policy for their own life.
Ready To Shop?
Before you commit to an important, long term contract like a life insurance policy, you should look around. An easy way to do this is with an online quoting form. Fill your information in one time, and then receive multiple insurance quotes. Then, after you have a good idea of the different policies on the market, you will probably want to sit down with an insurance agent or two for an expert opinion.
Compare Life Insurance Online and learn more about the different types of life insurance at http://www.247QuoteUS.com
To estimate your life insurance needs, use our free online life insurance calculator!
Tags: life insurance, term life insurance, universal life insurance, whole life insurance
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