Life Insurance Companies - Where To Start
If you have a life insurance policy, you should periodically check on the value of it. If your death benefits are more than the amount needed for debts and expenses, it makes sense to keep the coverage open. But if expenses exceed death benefits by a significant amount, it may be worth considering canceling or reducing your coverage. The problem is that every company has their own rules when deciding who gets life insurance and how much. This article shows some guidelines on where to start looking for companies that might quote lower rates.
Ever since I lost my father last year due to illness, I’ve been more conscious of making sure my family is financially prepared in case something happens to me too one day down the line. So I started looking into life insurance policies and what they are and how they work. But due to the information overload I had to do some research on the matter and the conclusion I came to is that there are certain aspects of life insurance that many people don’t know about. This is exactly what I wanted to share with all my readers today so that you too can be more informed about it before you sign up for a life insurance policy.
A SIMPLE EXPLANATION OF LIFE INSURANCE
Life Insurance is an instrument issued by a bank or a building & loan society which protects your family from financial mishaps. It is something every family needs. If you have children, they might require financial support to go through college. It also provides security to a spouse who is left alone after his/her partner passes away. The insurance amount can be used for down payment on houses and also for debts that the deceased may have left behind.
There are different types of plans and different definitions of life insurance, but here I will list out the three most common ones:
Term Insurance – It is a pure protection against death and is not meant to accumulate any wealth. It is commonly being used by young families who do not plan on having their kids go through college or any other major purchases in life so they opt for term insurance instead of a whole life policy.
Whole Life – Although it may sound like a good deal, it isn’t. It is a very expensive and risky kind of life insurance where the benefit amount is guaranteed for the rest of your natural life (or as long as it lasts). In other words, you can enjoy paying monthly premiums until you die, but there will be no gains at the end.
Universal Life – This is similar to whole life except that every year( every 5 years) an interest charge will be deducted from your policy from what you paid during the previous year. This way you are guaranteed to get back your invested money (excluding any claims) over time.
There are other types of insurance you may want to read about (Temp coverage, Critical Illness, etc) but for now we will focus on the ones listed above.
Once you have decided on the kind of life insurance policy you want to take out, it is important to compare rates from various companies. There are several sites dedicated to helping people find the best deal and that is where I will introduce you next.
COMPARE RATES WITH COMPANIES FAR AND WIDE
It is said that most people get their life insurance from a company offered by their employers or through their financial advisors but there are other companies out there who can provide a better deal and who might be more flexible with your needs.
The first thing you should do is ask around to find out where your family and friends get theirs from. If they have a good experience, ask them for the name of the company. You can also check with your bank too. You can also search online for life insurance companies but beware that some of them are nothing more than brokers who are unaffiliated with any of the providers in the industry.
Once you have all these names, it is time to compare rates from each company. There are several sites that will help you do this, but I won’t mention any of them in order to avoid any conflicts of interest. Let’s just say that a google search of “life insurance quotes comparison site” should do the trick. Go through the process of comparing and evaluating as many companies as you can. You will find out quickly which ones have lower rates and compare them one by one to find out which one is better.
Lastly, if you want to save some time, I have written an article about how to buy life insurance online that you may want to check out (the link will be below). Just remember that having life insurance is very important and it involves a long term commitment. Be sure of the amount you need before signing up for an expensive policy. Finally, I suggest that you read other articles I have written on the subject and find out what other people think about it.
A SIMPLE EXPLANATION OF LIFE INSURANCE COMPANIES
There are several life insurance companies out there but not all of them offer the same rates. One company may charge lower rates than another but they may be able to provide a guarantee for your policy (i.e. they will insure you for an amount greater than your family can afford). Furthermore, a good plan will also cover your heirs if you pass away without leaving a will (where the beneficiary is supposed to receive the money and assets that you leave behind).
Life insurance policies can be very expensive (especially if you are older) and finding the right one for your family budget is a tough task. However if you know what to look for, it can be a walk in the park. Good luck!
ABOUT THE AUTHOR:
Bestselling author Andrea Luka Zimmerman is the founder of Life Insurance by LUKA and has been featured in Forbes Life, Money, Business Insider, Investopedia & more. She is an expert on life insurance products and steps people should take to protect their family's future. To learn more about how to get life insurance quotes online visit http://www.lifeinsurancebyluka.com
You can also visit her on LinkedIn and become part of her Preferred Referral Program.
– Financial Freedom Author – www.Gonefishing.com/financialfreedomauthor
– Financial Freedom Book – http://www.FinancialFreedomBook.com
– Retirement Chapter – http://www.Gonefishing.
Conclusion:
So there you have it, America. The ultimate guide to buying life insurance. The information provided here may not be applicable to everyone but with a little bit of research on your part you should be able to find an amount which fits your lifestyle and needs the best. If you have any other questions about this guide while I will try my best to answer them in the comments section below.
See Also:
– How To Get Good Life Insurance Quotes – http://bit.ly/1pqrVTB
– Life Insurance – http://www.lifeinsurancebyluka../life-insurance-for-seniors-whole-life/what-is_new2.