The Importance of Comparing Life Insurance Policies

by Jeff Rose on June 20, 2017 · 0 comments

in Term Life Insurance

comparing life insurance policiesToday I want to talk about the importance of comparing life insurance policies.

If you decide that you know you need life insurance, whether that be term life, whole life, equity index, variable life, all the different types of life insurance policies that exist; it’s important to compare so you understand the benefits, pros and cons of which policy is going to be best for you.

Let’s take a look at some of the variables that you should consider when comparing life insurance policies.

Comparing Life Insurance Companies

It’s pretty easy to make the case that term life is going to make a lot of sense in a lot of different situations, but even if you decide that term life is the way to go, you want to not just compare the type of insurance but also the carrier. When it comes down to the carrier you are going to want to make sure the carrier has a high rating and high standard like A.M. Best where that life insurance company is going to be there 10, 15, 30 years from now to pay out if something were to happen to you. Heaven forbid, you took out a term policy and didn’t compare the insurance company to find out if something happen to you, and the insurance company wasn’t solvent and could not pay your death benefit; how horrible would that be for your family.

Don’t Forget to Compare the Cost!

It’s important to compare the best rated life insurance companies, and with comparing those companies you should also be able to compare the cost. In some instances I have seen where people didn’t compare the term policy. They had an agent who was suppose to be an independent agent and that person ran them a quote. They paid it because that is what they thought was in their best interest. Then, whenever we actually ran a quote and compared that to some other insurance companies, it turns out that they could have saved a pretty penny had they checked into it.

This is actually something that, I don’t want to say fell victim to, but when I first started in the business I took out one term policy for myself and went through one company. A second term policy I got for myself and went through another company, and I ended up taking out a third policy and went through and entirely different company and really thought that I was fine. I thought I was paying the best rate. I didn’t feel like I needed to compare and shop rates.

Never Hurts to Double Check

Then, probably a year ago I decided you know what, I’m going to check and compare my rate to make sure that I’m paying the best and cheapest amount. Turns out that I could have saved and actually am now saving $400 a year and was also able to get $250,000 more coverage all because I took five minutes to compare how much I was paying with my other policies compared to getting a new one with Banner Life.  $400 for five minutes works out to $4800 an hour.  That is a pretty good return on investment.

These are just some of the few reasons why it’s super important to make sure you compare your insurance to make sure you’re getting the right type that’s best for you, make sure you’re getting an insurance carrier with solid ratings and that is going to be able to take care of your family if something happens to you, and most importantly comparing to make sure you’re paying the best and cheapest rate for the term life policy that you need.

Working with an Independent Insurance Agent

One of the best ways to compare your life insurance rates is to work with an independent insurance agent. Earlier, I told you that I’m always running into people who supposedly worked with an independent agent, but they still didn’t get the best life insurance rates. While these people ended up paying more for life insurance because of bad agents, doesn’t mean that you have to. Our independent brokers have years of experience working with all kinds of applicants across the nation.

Our agents work with dozens and dozens of highly rated companies across the nation, which means that we can bring all of the best insurance rates directly to you. No hassle. Working with our agents can save you hours and hours of time that you would have wasted calling companies and answering the same questions.

It’s our mission to ensure that you’re getting the best coverage for your family at an affordable price. Our agents can save you hundreds of dollars.

How Much Life Insurance Do You Need?

Aside from ensuring that you’re getting the most affordable rates, it’s also vital that you’re getting enough life insurance for your family. Not having enough life insurance is one of the worst mistakes that you can make for your loved ones. It would leave your family with leftover bills and debts that they don’t have the money to cover. There are several different categories that you’ll need to consider when you’re calculating your life insurance needs.

The first number that you should look at is your debts and any final expenses that your loved ones would be responsible for if you passed away. Be sure to add up everything from your mortgage payment to any funeral bills. Most applicants are surprised to see how much debt that they currently have and would leave behind. Your life insurance will ensure that your loved ones aren’t responsible for a mountain of debt.

The next number that you should look at is your annual income. The secondary goal of your life insurance coverage is to replace your paycheck every month. If you’re one of the main income earners in your home, your family would struggle financially if something tragic were to happen to you. That’s why life insurance is so important, it gives them the money that they need to continue their standard of living.

You should also consider any future expenses that your family will run into. You can’t predict the future, but there are some bills that you know your family will have to pay, like college tuition of you have children. Once they go off to college, and if you weren’t around, it would be difficult to pay for those expenses. Your life insurance policy can give them the money that they need to further their education and not take on any additional debt. Spend some time looking into your crystal ball and thinking of any major bills that they may run into.

Comparing Life Insurance

Life insurance is one of the best investments that you can ever make for your loved ones. It’s important that they have the protection that they need, regardless of what happens to you, and a life insurance policy is one of the best ways to do that.

We know that getting an affordable life insurance plan can be long and overwhelming, but it doesn’t have to be. Our agents can help you get the best policy without having to spend days researching companies.

Because you never know what’s going to happen tomorrow, you shouldn’t wait any longer to get the coverage that your family will need. If you’ve had your current life insurance plan for more than 5 years, you can always compare other plans to see if you can save money. Simply spending a few minutes using our quote tool could save you hundreds of dollars. It saved me $400 a year, just imagine that extra money in your pockets.

Not only can our agents help you compare the rates of dozens of different plans, but they can also help you compare the benefits of the various types of life insurance policies. There are several different types, whole life, term, no medical exam, and many more. All of them have their various benefits and drawbacks that you’ll need to look at in light of your situation. Every person is different, and every family is going to have different life insurance needs. Our agents can walk you through the process and ensure that you’re getting the best type of coverage to meet your life insurance preferences.

If you have any questions about comparing life insurance rates, or you want to get the process started, please contact one of our agents today. We would be happy to answer those questions and connect you with the best plan to meet your needs.

You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get quality coverage in place. Call us today and we can get the process started.

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