Roughly 25% of adults that have families or significant others do not have any type of life insurance.
If something were to happen to an individual that did not have any life insurance, it could bring financial devastation to their family. A loss of income mixed with burial costs, monthly bills, and more can add more stress to an already trying time.
Having a life insurance plan is a must-have if you are married or have a family. But how do you choose between life insurance providers to find the best deal?
Here are the top five factors you need to consider when choosing between life insurance providers.
Table of Contents
1. What Type of Life Insurance Do You Actually Need?
There are several different types of insurance policies you can get that will vary greatly in cost and types of coverage. Whole life insurance covers things like estates or trusts and can be quite expensive.
Term life insurance is the most common type, outside of group life insurance provided by employers. Term life covers you for a set number of years, usually about 20 years. Look at what best fits your needs.
2. What Is It Going to Cost You?
While life insurance can be a cheap buy when you are younger, it can get expensive fast. Comparing insurance costs will help narrow down what provider will work best for you.
The average cost of a life insurance policy can range from as little as $20 a month up to $100 a month.
3. What Are the Life Insurance Benefits?
Before accepting any life insurance quote, you should look at what the life insurance benefits would be provided. Life insurance with living benefits allows you to benefit from the coverage you’re paying into while you’re still alive.
Some examples of benefits include covering long-term care, waiving the premium if you become disabled and unable to work, and paying out a portion if you are diagnosed with a terminal illness.
4. What Are the Ratings for the Provider?
You have many options for insurance providers, but if you are inexperienced in the insurance industry, all life insurance providers will start to sound the same. But one way to differentiate is to look at the insurance company’s ratings.
Ratings will reveal the financial stability of a company, their general reputation in the marketplace, and if they’ve had any negative reviews or circumstances in the past.
5. How Healthy Are You?
Lastly, you need to take stock of how healthy you are. Things like gender, family health history, smoking and drinking habits, and how much money you make all factor into the type of insurance policy that will work for you.
Work with life insurance providers to determine what policy would be best based on your health.
Need More Help Choosing the Best Life Insurance Providers?
Having a good life insurance policy can mean the difference between your family being taken care of financially after you’ve passed or possible foreclosure or bankruptcy. Work with life insurance providers to choose a policy that will protect your family from further distress when you’re gone.
Want more insight into how to choose the right insurance policy for your needs? Follow along to read more articles on everything you need to know about the insurance industry.