When you start talking considering Life Insurance, it really can be overwhelming. The information, advice and options really do seem endless and the relentless calls and e-mails from sales people once they smell you are interested can be annoying. After working as a captive agent for a. insurance company and starting my own brokerage the stories never seem to surprise me but always entertain.
To keep things simple, unless you are a business owner, a high net worth individual or a medical professional term life insurance is what you most likely need. I would recommend staying away from getting talked into anything else other then term life insurance to get started.
As you may know, there are a mountain of different avenues to purchase term life insurance and knowing what to look for as you begin the process can help. Here are some tips that I hope will help you out along the way and put you in the drivers seat while you look around.
1. Use a Broker. Life insurance brokers have the ability to survey and research many life insurance companies and obtain quotes. It’s important to use a broker that works with multiple carriers and not just one or two
2. Get Your Survey. Life Guide is a commonly used program in the life insurance industry by brokers. Have your broker run a survey for you, provide you a copy of carriers from lowest to highest prices and review the pros and cons of the 3-5 lowest priced carriers. This way you will be able to make an informed decision while insure you are getting a competitive rate.
3. Pay for you policy annually if you can. Paying annually compared to monthly will get you a 5-10% discount depending on the carrier. After 10-30 years of paying premiums, the savings will really add up.
4. Be Young. In the life Insurance world, the sooner you lock in your rates and set up your plan, the less you will pay over the long run. The older you get the more your will pay.
5. Good Health. Having a healthy lifestyle and good health may qualify you for a preferred rate that will be locked in for the duration of your policy. Ask your broker which insurance company would give you the best opportunity for a reduced rate.
Do as much research as you can before you call a broker and know what you are going to ask.