When looking for life insurance, the first thing most people look at is the monthly price. It sounds reasonable too, since you want to choose a policy that you can afford.
But cheaper is not always better. Few people are aware that you cannot judge an insurance policy based on price alone. There are many factors you need to consider. Let’s discuss what else you should consider when shopping for life insurance.
YOU MAY NEED ADDITIONAL COVERAGE
Whether its life insurance or another type of insurance, the first thing you need to determine is your life insurance coverage needs.
The coverage amount that many insurance agents or employer health plans provide is only basic coverage. In most cases it’s not enough for the average person. Therefore, needing additional coverage, which means buying an additional policy. Since insurance rates go up as you get older, you may end up paying more for insurance than you intended.
It is important to calculate the coverage that you actually need, before comparing different policies. This way you can choose the right policy for you instead of relying on price alone.
LIFE INSURANCE COSTS DEPEND ON YOUR RISK PROFILE
Have you ever wondered why different people get different quotes for the same life insurance coverage? Your insurance rates are generally dependent on your age, health, and overall risk of death. Each insurance carrier has their own internal processes for calculating risk, which is why you may also get different quotes across insurers.
For instance, if we talk about life insurance or health insurance, the insurance cost of a person having a high-risk profession like a race car driving or a police officer will be higher. That’s simply because they are more likely to get injured on the job then for instance an accountant or a plumber.
REVIEW THE COMPANY YOU ARE BUYING FROM
You should also research about the companies offering the insurance policies. Buying insurance means you will stay connected to the company for quite some time, so you should choose the one that has the best customer service. Look at the feedback coming from other customers, both negative and positive.
You don’t have to go with the lowest price just because it’s the lowest. In some cases, lower prices come with lower customer service and customer care programs. Online technologies and independent insurance agents like Dundas Life, are making the process of getting insurance easier and simpler than it’s ever been.
Try to also read the terms and conditions with care, so that you don’t get any surprises later on. If you have any confusion, simply ask questions. After doing all this research, you can choose the insurance company that satisfies most of your needs.
PRICE DOESN’T INDICATE FINANCIAL STABILITY
A low monthly premium may be a red flag. It could suggest that the carrier is not legitimate or not financially stable. You want to make sure that they have the cash to pay you out fast when you need the file a claim.
You could wait months or years to get the money you owed in a claim if there’s a waiting list. This might cause a significant financial problem in the case that you need the money for an emergency.
Choosing which insurance policy to buy can be tricky. Don’t make the mistake of getting the policy with the lowest premium without weighing the pros and cons. Keep in mind that a lower premium means that you will probably get less coverage.
Similarly, a life insurance policy with a higher premium is not always the best. Whether a policy is good or bad for you depends on several different factors. These should all be kept in mind before buying life insurance.