Everyone needs life insurance and no one wants to pay more than they should for a solid and dependable policy. Depending on your current age, the cost of life insurance can vary greatly. That does not mean that you should automatically accept a quote with high premiums, because high premiums may not always come with the best benefits for you or your benefactors. Here are some things that you should do as you evaluate life insurance options.
Investigate the Company
It may seem like every time you open the mailbox, there is another letter touting the benefits of an insurance company. The insurance industry continues to heavily support the direct mail industry with frequent mailings to individuals who meet their target demographics. Before you contact a company to inquire about their offer, you should begin by going online and reading about the insurance company. Check their ratings and read customer reviews of the company and its products.
If you are looking for an insurance agent in Phoenix AZ, take the time necessary to read up on the larger company before selecting the agent who you feel will help you the most.
Evaluate the Options
If you have decided on a life insurance company, you need to become educated about the products they offer. In order to select the best policy for your situation, this is a very important step in the process of obtaining life insurance. If you haven’t already done so, now is the time to calculate the amount of life insurance you need. Once you know how much you need, you will be better equipped to select from the myriad of life insurance options.
Whole life and universal life are the two most frequently purchased types of permanent life insurance. Depending on your situation, there is probably one or a combination that will work best for you. Whole life insurance comes with a set premium and a set benefit. This is probably the most stable type of life insurance because the costs are known up front. There is a cash value assigned to a whole life policy as well. Universal life is less stable in that premiums and value are determined by fluctuating interest rates. Depending on your willingness for risk, you will most likely select from one or the other.
You have probably also heard of term life insurance. This is by far the most affordable option for many individuals. The upfront costs are minimal, making term life popular among individuals with low incomes or young professionals at the start of a career.
Ask About Riders
Think of Riders as ala carte insurance purchases. Depending on the company you select, you may not need to purchase riders above and beyond the original policy. Most companies will offer disability riders, meaning that should the policyholder become disabled and therefore unable to pay the policy premiums, the premiums are waived while the disability continues. Some life insurance policies do not offer benefits for accidental deaths. You should definitely know this information prior to starting a policy. Ask your agent about available riders and the premium increases associated with the selection of one or more riders to your policy.
Be an educated insurance customer and make sure that the money you invest in premiums is a good investment in the future of your family.