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Life and Health


By November 1, 2010No Comments

Most Americans pride themselves on being savvy bargain hunters. Online coupons, online discounts, and ease in Internet price comparison on everything from a hammer to a safari vacation has made it faster than ever for a consumer to hunt down bargains. However, there are some things that are more important and complicated than just getting the cheapest and fastest deal.

Life insurance is a perfect example. There’s an array of online Life insurance companies offering fast and free Life insurance quotes. Although there is an appeal in convenience and a supposed bargain, Life insurance isn’t a one-size-fits-all purchase. The “right” Life insurance involves much more than cost; much like a homebuyer doesn’t just consider cost when purchasing a property. If typing in home criteria and clicking the “buy now” tab on the cheapest home sounds unwise, then buying Life insurance this way should seem just as imprudent.

Of course, cost will be a consideration when purchasing Life insurance, but the consumer should also look at other elements:

Determine the Policy Value

“You get what you pay for” is an apt adage for Life insurance. What an online insurance company touts as a bargain policy is usually nothing more than a watered-down policy, as all Life insurance is priced based on the supplied benefits, offered features, and overall value. Many policies will appear to be similarly composed, but the most subtle variation can result in a significant cost, value, and benefit difference.

Determine What Your Individual Needs Are

There are three main types of Life insurance: Whole Life, Term, and Universal life. Each of these types is also available in dozens of unique policy variations. It might seem daunting to evaluate the benefits and features associated with each type of policy, but that is truly the only way to guarantee that you obtain the best policy for your specific need. Opting for the cheapest policy, regardless of whether it actually meets your need, can actually harm your long-term financial plan.

Most online Life insurance quotes involve a term Life insurance policy (coverage for a limited time for a fixed rate of payment.) The cheaper the policy is, the more it will be stripped of benefits, value, and features. The limited coverage and stripped benefit elements of online insurance may not be congruent with your unique insurance need or long-term financial plan.

Consulting with a Knowledgeable and Experienced Professional

Life insurance, when purchased correctly, can be a valuable asset. However, it is also a dedication of money, and you want to make sure that every dollar is going toward a product that is best for you and your beneficiaries. An insurance expert can help you analyze your insurance need, lay out the best applicable options, and tailor the product to accommodate current and future needs. Best of all, if you have a question or concern about Life insurance, you aren’t limited to an online “FAQ” page.

Using a Reputable Life insurance Company

Reputable Life insurance companies haven’t built their reputation by failing their customers, failing to disclose the terms and conditions of their products, or being lax with the personal information that a client has entrusted them to keep secure.

It is also important to make sure that the insurance company has the financial strength and longevity to meet the obligation of the Life insurance policies that they sell. Financial strength of the insurance provider is especially important if you are interested in a policy that is going to provide permanent Life insurance. Looking at the Life insurance rating for the company can give you a good idea of their financial strength.