Does this sound familiar?
“One day, I’ll get life insurance….”
Putting off getting a policy is so easy. But is it smart?
In America, 78 years is the average life expectancy. However, there’s no guarantee for anyone. Thankfully, when you decide to take steps to secure your finances, you can finally have the peace of mind you deserve.
Make today the day you do something about life insurance. Read on to learn how to find a life insurance company that meets all of your needs!
Know What You’re Buying
First things first, what exactly can life insurance do? There’s quite a bit!
Life insurance is a contract between you and the insurer. It transfers some or all of your financial obligations to another person, typically for payment of cash up-front.
Life insurance also provides coverage against the risk of death from accidents not related to the insured’s occupation. The policy gives beneficiaries much-needed funding in the event of death.
How Much Life Insurance Should You Get?
Before choosing a company, determine how much coverage you’re interested in. Do you know how much life insurance you need? This can vary from person to person, but there are some good guidelines you can look at when figuring out how much coverage you need.
One helpful tip is to add up all of your current debts and your projected expenses over the next 10 years. Did you realize that you have more debt than you’d hoped for? Don’t stress. There are tons of free debt relief tools online that can help you out.
Next, add a little bit extra for a cushion. This would be a good number to consider when figuring out how much life insurance you need.
The above is just an example of what types of things to think about when deciding how much life insurance to get, but many other factors would also affect this number. You should always consult a professional when determining the best amount of coverage for you.
Does the Company Offer Liquid Policies?
Are you on the fence about whether or not you need a policy? The average income in America is about $68,000; however, it’s normal to make much less.
When funds are tight, investing in a policy can seem like a paradoxical idea. Why would you spend money if you need more of it? The truth is, life insurance is an intelligent investment, and there are countless benefits to getting it!
Compared to other investments, life insurance is very liquid. You can get a significant amount of money from it if you need it, and that’s because the majority of life insurance policies allow you to borrow against them! There are conditions to this, but borrowing against your policy could be a great way to get money for your financial needs when needed without having to pay taxes.
Lastly, a life insurance company can help with financial transfers. The right policy will let you directly give assets to someone else.
For example, let’s say you have some stocks or other individual assets you want to pass on to the next generation but don’t want them burdened with paying estate taxes. Buying a life insurance policy could be the perfect solution.
Competitive Life Insurance Marketplace
Did you know life insurance is a competitive industry? This is excellent news for you. It means top rated life insurance companies are always doing whatever they can to see customer expectations.
There are many different types available, but they can be categorized into 3 main categories:
- Term life insurance
- Whole life insurance
- Universal life insurance
Each policy type has its own set of features and benefits. There is a policy out there for anyone’s needs, but shopping around can be significant!
We suggest looking for an insurance company that offers all 3 types of policies; that way, you can benefit from choosing. Hand-picking a policy is always better than going to a company with a cookie-cutter policy approach.
Term Life Insurance
Does the company you’re considering offer term life insurance? A term policy is the most common type of life insurance. It’s a contract that provides you with coverage for a certain period, typically 10, 20, or 30 years. If your term policy expires and you want to renew it, you can do so by paying the same premium amount as before. You may also be able to take advantage of other rate increases based on recent changes to rates in the market at large.
In addition, if you decide to cancel your term policy early due to financial hardship or any other reason whatsoever, there is usually no penalty for canceling before it expires. There are specific rules every company should follow regarding how they handle cancellations, but these rules vary from state to state and even from company to company.
Whole Life Insurance
Are you looking for a company that offers whole life insurance? Another type of life insurance policy is whole life insurance. Whole-life policies are designed to provide you with coverage for your entire life.
However, whole life policies are typically more expensive in the long run. This is because whole life policies have fixed premiums that don’t vary over time.
Universal Life Insurance
Perhaps a universal life insurance policy would best suit your needs. Universal life insurance is a form of permanent coverage.
In addition to providing you with a death benefit, universal life also builds up cash value over the years. Policyholders can take advantage of this cash value by borrowing from it or even withdrawing money from it. The policyholder must pay interest on the borrowed funds, but they can build up substantial cash value over time.
Reputable and Friendly Staff
Next, make sure the company you choose has a good reputation in the life insurance industry. Do some research online and read about others’ experiences with particular companies before signing on the dotted line!
Do they have a friendly staff? When dealing with critical financial decisions, the last thing you want is the unfriendly staff who don’t do their job correctly.
Try calling the company, and notice how the customer service rep treats you. We suggest calling multiple times throughout the day, so you can get a good feel for what their service standards are. It might be easy to get an upbeat person in the morning, but what about when the day’s coming to a close?
Next, if possible, find out what other people have experienced with certain insurers. The Better Business Bureau (BBB) can help provide you with this information too! A quick BBB search can reveal valuable insights.
Social Media Research
Are you active on social media? You can find out a lot about a company by going online and checking them out on social media outlets, such as Facebook and Twitter. You can check out these hidden Facebook features to make your research more profitable.
In addition to using social media to check up on companies, you should also make sure there are no complaints against them or that they have been sued in the past. This is an excellent way to determine if a company is reliable, as many people post their grievances online.
Compare Quotes for Competitive Rates
Furthermore, it’s essential to go with a company that has competitive rates and good coverage options. After all, you don’t want to pay too much for life insurance! A company that has a good reputation and offers competitive rates is usually your best bet.
Don’t go with the first life insurance company you find; instead, shop around. By getting quotes from various life insurance providers and researching their financial ratings, you can’t go wrong in finding the best company for your situation. Since many companies offer a free quote online, this should not be a problem.
By doing diligent research and getting quotes from various life insurance providers, you can find out which company has the best rates and coverage options for your specific situation.
Another thing to keep in mind is that it will be harder to get coverage if you’re under 40 years old, and the rates aren’t going to be as competitive.
How Long Will Your Policy Be Active?
In addition, you need to find a policy that will be active when you need it. So get one that doesn’t have an ugly term limit or other restriction on its duration.
For instance, some policies will lock you into a 10-year contract. That’s no good! If you think you want insurance for the next 30 years of your life, don’t get one locked into 10 years.
To avoid this unfortunate circumstance, it’s essential to read the fine print. Determine how long the policy will be active, and whether the terms are flexible.
Strong Financial Ratings
Next, find out the financial strength ratings of the companies you are considering. This is especially important if you want to transfer assets to your children. This also applies to any other type of life insurance policy transfer or loan application.
Financial ratings are assigned to insurance providers by independent agencies. The higher the rating, the more financially stable the company is.
Always choose a company with secure financial ratings, even if the policy costs a little more. That way, you won’t end up with a policy that isn’t worth anything or that you can’t cash in because the insurer goes bankrupt!
What Does the Company Test For?
Moving on, find out what the insurance company is going to test for. Unlike other insurance, like auto or home, life insurance is a bit more complex. You have to make sure the company is going to test for everything you consider essential.
For example, if you have a family history of cancer or heart disease, make sure these conditions will be tested for. If a potential life insurance policy doesn’t check for those things, it’s probably not worth your time.
It would help if you also looked into whether or not the company will test for lifestyle factors like smoking or obesity. You can find out what the policy tests for by reading the small print.
As long as you read the fine print and ask the right questions, you should find a policy that is appropriate for your needs. This way, you can rest easy knowing your loved ones are going to be protected!
Drug Tests
Does the insurance agency test for drugs? Different agencies have different policies. Some might test for drugs depending on your occupation. Whereas, others only drug test when there’s reason to suspect that you’re a drug user or if you’ve been prescribed certain medications.
You also want to make sure the company will drop you if you fail a single drug test because you never know what can trigger a false positive. If you’re a non-smoker and don’t do any recreational drugs, then the chances are good that you’ll pass the drug test.
Ethical Life Insurance Companies
Last but not least, the best life insurance companies are the ones that care about morals and ethics. When it comes to things like this, you don’t want the insurance provider to take advantage of you or your family. You can avoid these types of problems by researching and choosing a reputable company that is straightforward with its customers.
If you aren’t able to trust them, then they’re not worth doing business with. Make sure they have a good reputation and base your decision on what other customers say about them.
Again, do some research on the Internet. Find out if there are any complaints against the agency, and read consumer reviews.
Get Started With a Life Insurance Company
Now you know why getting insurance is so beneficial and how to choose a reputable life insurance company. All that remains is for you to do is start a policy! The process isn’t complicated and can be completed in just minutes once you have made up your mind.
So start getting quotes today, and compare the prices along with the policy features. Before you know it, you’ll have the peace of mind being fully covered brings. For more tips, check out the rest of this site!