How to Find the Best Life Insurance Policy

You’ll want to review your goals and finances to determine what type of life insurance will best meet your needs. You might consider working with a financial planner or using the services offered by your employer.

It’s possible to get online quotes for some policy types (term, no-exam and guaranteed issue), but other policies require speaking with an agent. Make sure you’re comparing apples-to-apples when getting quotes.

1. Determine Your Needs

Getting the right life insurance coverage depends on your needs and can be complicated. Several factors are considered, including how much you need to pay for final expenses, debts and income replacement. There are many models to help determine how much you need, but it’s best to consult a financial planner for an in-depth analysis and to find the right policy.

Your health is another factor. If you’re in good health, you could get cheaper rates. A medical exam is required for most policies, but some companies offer no-medical-exam options if you meet certain requirements.

You also need to consider your assets, which include savings and investments, property and any other assets you own. Your existing assets can offset the amount of life insurance you need and help you avoid paying too much for coverage.

2. Identify Your Budget

Now that you have a better understanding of the different types of life insurance, it’s time to figure out how much coverage you need and what type of policy is best for your budget. You can use online premium calculators to find out how much you’ll need to pay for the amount of coverage you want.

You’ll also need to consider any debts you have, such as a mortgage, student loans or car loans, and how many years of income your family will need to cover after your death. Then, subtract your current assets and liquid investments from the total amount of coverage you need to come up with a number that you can afford to pay each month.

Keep in mind, the more life insurance you buy, the more it will cost each year. However, it’s usually worth it to make sure your family is covered if something happens to you. If you’re not comfortable spending that much, consider term life insurance, which provides a smaller death benefit but has lower premiums than permanent policies.

3. Do Your Research

Many life insurance companies offer a variety of policy types. Some even offer add-on coverage options, such as an accelerated benefit rider, to help pay for medical and long-term care costs in the event of a terminal illness or other unexpected events.

When shopping for a policy, it is important to research and compare different providers. You can do this by reviewing the company’s customer service ratings from third-party sources, such as J.D. Power and financial strength ratings from credit rating agencies like AM Best, S&P and Moody’s. It is also helpful to review the company’s history and track record in providing quality policies.

Additionally, it is beneficial to research the type of policy you’re considering and its cost. This can be done by using online calculators and tools. Lastly, it is also a good idea to seek the guidance of a financial professional. With these resources in hand, consumers should be well-equipped to select a policy that meets their specific needs and budget. Whether they ultimately purchase their life insurance directly from the provider or through a financial professional, they can be confident that they are selecting the best policy for their unique situation.

4. Get Quotes

Once you have a good idea of what coverage you need, how much it will cost and which insurers are likely to offer the best rates, get quotes from several providers. This will help you make the most informed decision.

The quotes you receive will depend on a number of factors, including your age, occupation and medical history. Some insurers may also take into account your family health history and lifestyle habits, as well as your driving record. They will then use this information to calculate your life expectancy and insurance risk and set your final rate — known as your premium — which may differ from the initial quote.

You can typically get life insurance quotes online from a variety of insurers and brokerages, or you can work with a licensed agent who can compare options and assist with the application process. In some cases, financial professionals can recommend an insurer that offers a policy with specific features. In addition, independent ratings companies such as AM Best provide a snapshot of each company’s financial strength to ensure they can meet their obligations to pay out your death benefit.

5. Make the Decision

Ultimately, the best life insurance policy is one that fits your needs. It is important to think about what you need the money for, such as funeral expenses, mortgage or debt payments, education costs and other financial obligations. There are tools online to help you calculate your need and how much coverage may be required.

Once you have gathered all of your information, it is time to make a decision. Be sure to take your time and do all of the research you need to find the best life insurance policy for you. If you have any questions, be sure to contact a trusted financial professional for more guidance. Many of the companies we recommend have insurance agents available by phone to answer any questions you might have.