If you’re in the market for life insurance then you probably have one thing on your mind: “how can I get the absolute lowest rates with the best coverage”. This is a legitimate question as life insurance is a significant expense to most families. On one hand you don’t want to overpay and hand an insurance company money you can’t afford. On the other hand you don’t want to pinch pennies and find out that your coverage isn’t enough for your needs.
Thanks to the power of the internet (especially search engines) you can now compare dozens of rates with relative ease. While computers have made the job much easier than ever before, that doesn’t mean you don’t need to use your head when shopping for term or whole life insurance.
Know Your Life Insurance Rates
Like in the “old days” of using an insurance broker, you should at least understand what life insurance is and what it does. This excellent article has a nice overview of how to balance your passion for low prices with the coverage you need. But unless you have a fundamental understanding how how the process works you’re likely to overpay.
Next, don’t simply rely on what life insurance comparison sites show you. Yes, that’s a nice starting point but it’s really just a bird’s eye view of the type of coverage you can expect. If you want to understand the plan in detail you’ll need to contact the insurance provider and ask for the fine print. Yes, it’s not the most exciting activity in the world but it beats finding out 5-years in that your coverage isn’t what you thought it was.
Finally, you should chat with friends and family members that current have an insurance plan. Ask them what the experience has been like with their provider. Has the provider been helpful and courteous? What happened if they missed a payment? This will often reveal a lot about what type of life insurance company you’ll end up dealing with after your contract has been signed.