Cheap Cheaper Cheapest
Posted by Lenny Robbins on Thu, Aug 11, 2011 @ 04:43 AM
When people look for life insurance they usually consider many different factors. Some of the considerations are price, value and company name recognition.
When it comes to pricing, everyone wants to get the best deal possible. Me too! But is the cheapest term life insurance the best for you? Here are some other things to think about!
Company Strength
You want an insurance company to be financially strong. They need to be around for a long time, at least for the rest of your life Be sure to ask your agent about the company's AM Best rating. We suggest applying with an A rating or better (A+ and A++).
Convertibility
Did you know that you can convert a term policy to a permanent policy? Every policy has a period of time when you can do this without underwriting. Your health rating stays the same. The new policy is priced based on your current age.
This becomes a very important benefit if your health changes and you become either uninsurable or highly rated (expensive). Does the cheapest term life insurance policy have good conversion options? Every company differs, but your independent life insurance agent should know where to apply.
Premiums
Often people get multiple quotes for life insurance and they can differ dramatically. Some agents collect more information than others and can give you a more accurate quote. But that more accurate quote may be more expensive than the agent who gets less information about your health, family history, etc!
Ultimately, the insurance carrier will get all of the information they need to make a decision on your application. Most importantly, an agent can only give you a quote. Only the insurance carrier determines your actual price. It makes no difference if you are quoted more or less, the insurance company will make the determination and give you the best rating possible.
Key Points
Consider the financial strength of the insurance company before you buy.
Use an independent agent to assist you in choosing a company which is strong, has good conversion options and competitive pricing.
The cheapest term life insurance quote may not be the best term life insurance quote for you!
Photo credit: Eric E Castro