If you’re shopping for life insurance, you may already understand just how many policies and how many companies there are offering coverage. It’s a bit overwhelming, and it’s a little tempting to simply grab the first quote you see and move forward. The simple reality, though, is that you should take the time to compare life insurance for several reasons.
Reason #1 – There Are Different Coverage Types
When you compare the actual life insurance policies, you’re quickly going to discover that not all coverage options are the same. Whole-of-life policies are ongoing policies. They pay out when you die. Term assurance policies, though, are only for a certain period of time. If you die within that period of time, they pay out. They tend to be a bit cheaper than whole-of-life policies.
Reason #2 – There Are Add-On Options With Some Companies
Often when you decide to purchase life insurance from a company, you’ll be given some add-on options, like critical illness cover or cancer cover. These kinds of add-ons can help offer you a lump sum in the event of a serious diagnosis, but not every company offers them. Asking about your ability to add certain types of cover can make all the difference in making certain you’re fully protected.
Reason #3 – Buying More Than One Policy May Be Cheaper Than A Joint Policy
If you’re shopping for quotes for both of you, you may find that with some companies, purchasing two separate policies is cheaper than purchasing a joint policy that covers both of you. You won’t understand that, however, unless you compare the policies and take a hard look at the numbers from each company.
Reason #4 – Risk Varies
Just how risky you are to life insurance companies varies from company to company. The simple reality is that if you’re considered to be a serious risk, you’re going to pay more for a policy, so shop around and see which companies consider you to be a safe bet and, thus, give you lower premium amounts.
Reason #5 – Premium Payment Terms Vary
With some life insurance policies, you’ll pay a given amount throughout the life of the policy. In other cases, though, your premium terms are considered to be reviewable, and that may mean that you end up paying more than you’d initially expected when you signed up for the policy itself. Ask about how your premiums will be figured over the course of the policy before you make any final decisions.
Not all life insurance policies are the same. Understanding exactly what you’re buying before you make the purchase is essential, and clicking on the first quote you get won’t help you do that. Take a solid amount of time to shop for life insurance, then once you’ve compared quotes on all levels, move forward with a decision that will help to protect your family and your finances well after you’re gone.