Last Updated on Mar 5, 2020 by James W
When shopping for life insurance, getting the best coverage at affordable rates may make or break your decision to be covered. Don’t take any life insurance coverage until you have weighed your options and benefits. Here are 4 tips on how you can save money by comparing insurance providers and their rates.
Don’t Automatically Go With Your Current Insurance Provider
You may feel compelled to bundle your life insurance policy with your current homeowners and auto policies. However, it does not always guarantee the lowest rates just because of a discount. If your insurance provider prices are generally higher, that 10 percent discount may not be beneficial at all. You can always ask your insurance agent to customize a life insurance quote and compare that to other insurance providers.
Make Sure to Compare Apples to Apples
Whenever you are comparing life insurance quotes, make sure you are comparing the same plans. You want to compare term life with term life policies, not with a whole life policy. The benefits are totally different. Also, make sure you are looking at the same terms. If you have one quote for five years and the other at ten years, the longer term may be a bit cheaper. You also need to check that you are comparing the same level of term life insurance. For instance, some life insurance policies increase their premiums. Make sure those premiums stay constant for the life of the policy. Finally, verify if the policy has a decreasing value. There are some policies where the death benefit will decrease as the insured ages.
Compare Life Insurance Quotes From Direct Insurance Providers versus Brokers
Never put all your eggs in one basket. It will help you to have a perspective from both sides. An insurance brokerage firm should be working out the best insurance options for you. A broker also works with select insurance providers who offer them the best deal. This helps drive their commission. So, you may not have all the best options presented to you. An insurance provider will give you their bottom line. Both will try to upsell you on insurance options, so it’s important to be firm about what you are looking for.
Get Life Insurance Quotes from an Online Quote Engine
You can always get an unbiased opinion from an online quote engine. You fill in your information and it’s sent to the insurance companies that best meet your needs. The insurance companies will provide an online quote or email you. Some sites allow you to read insurance reviews regarding the companies as well.
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