How To Compare Life Insurance Policies

Choosing a life insurance policy can be tricky, as comparing them thoroughly -- in order to get the best price for your money -- can be difficult. Outlined below is a great way to compare potential life insurance policies to make sure you find one that fits your needs.

  1. Gather a list of available life insurance policies for the amount and length of time that you need. You can do this by printing them out, writing them down, or by using a rate comparison tool offered by websites such as QuickQuote.
  2. Determine which of these plans will allow you coverage according to your individual circumstances. For example, if you have a very high risk of having a heart attack or stroke due to family history or your own history, then some companies may choose not to offer you coverage.
  3. Throw out the policies that will not cover your situation.
  4. Determine which of the remaining plans have monthly or yearly premiums that you can afford.
  5. Throw out the policies that are too expensive.
  6. Now that you have rate quotes for those policies that you can afford and that are willing to cover you, it is time to choose the policy that is the cheapest. You should not pay more for coverage than you have to so, as long as the policies are comparable, purchasing the least expensive one is the way to go.

Remember, the rates you are quoted will depend on your requested coverage amount. So, if you cannot find a policy that is within your price range, try lowering your requested coverage amount and submitting your rate query again.

The coverage amount you decide to ask for should be directly related to your circumstances. For example, a 40-year-old male with four children and a wife may decide that a high coverage amount is more important than a lower premium. On the other hand, a young single female may decide that a lower premium is more important than how much coverage is available for her final expenses.

If you are older and have a high risk of certain medical conditions, it may be hard for you to find an affordable quote no matter what coverage amount you select. Lastly, it is important to make sure that the policy you ultimately choose has an easy claims and payout process to save your loved ones from more financial grief and hassle after you are gone.


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