How to use life insurance quotes
A guide to finding the best policy
The first step is to think carefully about your current financial position. Make an assessment of the current amount you owe and think about how much you spend each month on basic household expenses. Now look into the future and ask yourself what big bills may come your way. The most obvious is the cost of education for your children, but you may have other foreseeable expenses. This will give you a basis for calculating roughly how much life insurance to buy. After paying off your existing bills, most insurers recommend you look at a lump sum of about seven times your annual income. This will give your family enough to live on while adjusting to your absence. However, remember that the amount you need in later years may be less as the mortgage will be paid off and the general level of debts will be lower. Now decide what type of insurance cover you think it best to hold, and get term or whole life insurance quotes for that amount. For comparison purposes, it is also useful to get quotes for different amounts and policies with different investment options.
Remember, getting life insurance quotes is only an intermediate step. If you are asking for more than $250,000 in cover, you will usually be asked for a medical exam. Once your health has been confirmed, you need to get into the detail of the policies on offer. This is a major financial commitment spreading installment payments over decades. Do not commit yourself unless you are satisfied the policy will deliver what you actually need. Remember that agents earn more commission if you buy whole or universal life insurance cover. There’s a direct conflict of interest and you cannot expect to receive impartial advice. So read through the policies carefully. If there is anything you do not understand, ask for it to be explained. When you are satisfied, make a final check through the application form to ensure everything has been properly filled in and confirm the purchase. When you get the policy, check that nothing has been changed.