You have to face it. Life insurance is boring. You probably don’t even want to think about it, let alone research policies and compare quotes. But you should still shop around for a policy that will keep your loved ones financially secure after your passing. And when it comes to shopping around for life insurance, there are some things you should be doing—and some mistakes you should avoid—before deciding on a policy. Here’s what you need to know:
Make sure you know what type of policy you want
The first step in comparing life insurance policies is to make sure you know what type of policy you want. Life insurance policies are different from health insurance policies, and they’re designed to replace your income if you die prematurely. Health insurance policies, on the other hand, are designed to cover medical expenses if you are ill or injured.
Purchase options for life insurance include group plans (through an employer or association), individual plans (purchased directly through an insurer), and universal life (where premiums can be adjusted based on age, for example, online life insurance for seniors).
Check out all your options
Once you understand what each policy covers and the different types of policies available, it’s time to start looking at quotes.
To get the most accurate quote, you need to choose a company that can actually provide life insurance for your circumstances. Unfortunately, many companies will not be able to offer coverage because of medical issues or other factors that make them ineligible for certain types of life insurance policies.
This may mean changing from one insurer to another in order to find the best deal on your chosen type of policy.
According to Ethos experts, “Rest assured—it’s not too late for you to purchase online life insurance if you’re over 55.”
Look at the details of the policy
It’s important to look at each policy’s details before making a decision. Things like exclusions and pre-existing conditions can be pivotal, so these must be spelled out clearly in the fine print.
If you have a health condition, check to see if your chosen policy covers it—and if not, whether any additional fees or restrictions are involved with this coverage.
Don’t just look at the premiums
You don’t want to look at the premiums but also the details of the policy. Make sure you know what type of policy you want, then check out all your options.
Compare quotes from several insurance companies
When comparing life insurance quotes, it’s important to remember that many factors exist. For example, some companies offer a higher premium at first but then lower that rate after you’ve built up a certain amount of your own money in the policy. Others will offer lower premiums and then raise them later on. If you need help determining which option is best for your specific situation, ask an agent or rep from each company for assistance with comparison shopping.
In the end, insurance is a personal decision. So you need to evaluate your needs and ensure you’re getting the best coverage for your situation.