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Tips on Choosing a Life Insurance Provider
Have you ever thought what would happen to your family or your dependents if you die? Whether you are the primary breadwinner, or the one who takes care of children for the most part, your investment in the family life and well being is invaluable. However this investment can be insured. Life Insurance gives you an opportunity to plan for your death in order to make sure that your family will have everything they need to survive, lead their life as normal and lack nothing but you.
Since it is not just the biggest earner in a family who needs to consider Life Insurance, it may be wise to choose a sort of policy offering protection to both partners. It will pay out should either insured member pass away.
It is necessary to devote considerable time and effort to choosing a Life Insurance provider. There are over 2,000 providers in the U.S. that sell Life Insurance policies, and they are not equally effective in helping you achieve your individual needs and goals. You need to learn to avoid bad insurance providers and choose the most reputable and the most suitable for your situation.
Shop for Life Insurance quotes and narrow down your choice to a few insurance providers you are interested in doing business with. Then assess their financial stability, quality of customer service, ethical conduct, honesty and reputation.
As a Life Insurance provider of your choice is likely to engage in a long term business relationship with you, it is vital that you make sure this provider is financially stable and will stay in business as long as you need it. Use the information about the insurance companies' ratings on special sites to get a better idea of their financial strength and potential. Independent rating agencies also give customer service ratings and feature previous customer complaints concerning failures to pay claims or adequately meet customers' needs. You need to do this research in order to have an idea of what to expect from your provider when you need to file a claim.
Ethical conduct is one more important factor you should pay attention to while choosing a good Life Insurance provider. You are recommended to purchase Life Insurance from providers who subscribe to a set of ethical codes through the Insurance Marketplace Standards Association.
Many consumers would prefer to work with an insurance agent to be able to ask questions and select the best possible options for their financial situation and coverage needs. Ask your relatives, friends and co-workers about the insurance agents they used. You need a licensed agent who will carefully assess your Life Insurance needs, answer your questions about their product, clarify all the details and never pressure you to purchase before you know that this policy is right for you.
Most insurance providers have their websites on which you can find all the necessary information on policies and compare quotes. You may save money in case you also purchase or have already purchased Homeowner's, Health or some other kind of insurance from the same provider you are going to buy your Life Insurance from.
Life Insurance providers assess risks taking into account your record history and your state of health. There are actuarial tables which are designed to provide an estimation of how long a person will live a natural life. The estimates are based on the person's age, medical conditions, occupation, lifestyle, weight, medication a person uses, etc. Things like whether you smoke and how much alcohol you drink will also play an important role in assessing health risks for a Life Insurance provider. Remember that if you fail to mention anything like your smoking habit, this could void your insurance policy. The cost of the insurance basically depends on whether the person is likely to be living the full length of the insurance plan or at least until the provider has received a profit from the premiums.
The older you get, the higher your premiums will be as you will present greater risk for the insurance provider. The best time to obtain Life Insurance at a lower premium is when you are still young: newly married or have just had your first kid.
As a matter of fact, Life Insurance providers want agents to sell more of Universal and Whole Life policies, as they are more expensive and produce more revenue for the company. However, financial experts agree that Term Insurance, accompanied with a smart personal savings plan may be a much better option for many consumers.