A life insurance policy is a valuable investment that not everyone has. While pretty much anyone could help their family with the aftermath of their passing by getting life insurance, relatively few take the steps necessary to achieve this goal.
A life insurance policy is a potentially long-term investment that pays out only upon your death, which most of us hope to be decades down the line. There are many competing insurers eager to get your business, so it may be tempting to select a policy solely based on its price. While it’s important to be sure that you can afford your policy, there are other factors you should take into account as well.
Don’t Select a Policy Based upon the Initial Quote
When you get a quote for a life insurance policy, it’s a rough estimate of what you can expect to pay, but not a guarantee. Until the policy has been fully underwritten – meaning, your personal and health information is assessed – you won’t get a realistic price that you can expect to pay. Sometimes, this can be significantly greater than the quote.
Again, the cost of your policy shouldn’t be your only concern if you can comfortably afford it. Purposely seeking the lowest possible quote can result in inadequate coverage and sticker shock.
Consider Insurers Who’ve Been around for a While
If you’re purchasing a life insurance policy, you should be confident that your insurance company will not only be around when a payout is necessary, but also financially strong enough to afford the payout. Insurance is a difficult business, and while every business needs to get its start somewhere, the risk of resting your family’s future in the palms of a potentially unviable company is too great to trust with a startup.
Beyond the company’s legacy, you should also consider its financial vitality. Companies such as Standard & Poor’s, A.M. Best, and Moody’s all provide financial strength ratings that can help you assess how “healthy” an insurer’s finances are.
Your Insurance Product Can Direct Your Decision
Sometimes you can narrow down life insurance providers by considering your need for insurance in the first place. Someone who is looking to purchase a term life insurance policy probably has different considerations than someone seeking a permanent policy.
By determining which companies provide what and if their products have a respectable reputation, you can create a solid list of potential insurers to investigate further. Our insurance specialists can help you with this process by listening to your needs and connecting you with providers who can meet them.
Your Health Can Determine Your Options
Life insurance companies take everything into account about your life and health, such as your weight, smoking status, and even type of employment. If you are in reasonably good health, you probably have a greater gamut of companies from which to choose than someone with these risk factors or another kind of pre-existing condition.
Pre-existing conditions that can limit your options to find affordable coverage can include asthma, heart disease, diabetes, depression, cancer, epilepsy, and more. By understanding which companies are willing to provide coverage for customers with a pre-existing condition at affordable rates, you can narrow down who to consider more seriously.
Do You Need Help Finding the Right Insurance Policy for You?
It’s not always easy to know which life insurance company will provide you with the best possible coverage at affordable rates. That’s why customers turn to Insurance Specialists, Inc. to connect them with companies that can help them get what they need.
When you work with one of our insurance specialists, you can expect us to do the research for you and identify policies that can match your needs at prices you can comfortably[CB1] afford.
If you’re interested in what we can do for you, contact Insurance Specialists, Inc. online or call (888) 451-0883 to learn more.