We commend you on taking the time to learn about protecting your family with life insurance.
Most people consider it a non-necessity because they believe that nothing will ever happen to them or they might also believe that it is a waste of money. It’s always, always better to have a life policy than not to have one. Also, you will not a need life coverage forever. Just to protect your dependents until they are no longer dependent upon your income. By that time there will be no need to insure your life or insure your income.
You have inputted your information for a life quote and retrieved a list of life insurance quotes for you and you are wondering: How in the world do I compare all these insurance quotes?
Here are the factors to help you:
Company Credit Rating of the Insurance Company
Look at how solid the Life company is. This is ABSOLUTELY important in the fact that a company with a bad credit rating renders your life policy absolutely useless and you will be throwing your hard earned money away each month without even knowing it. You must research yourself if the insurance company is a well known, established company with solid financials or is it a relative newcomer in the industry?
Check the financial credit rating of the company. Their rating scale ranges from “A++” to “F” where “A++” is the highest credit rating and “F” is the worst financial credit rating for the company. Actual grades vary by rating company.
Why Credit Rating is important:
You would NOT want to get a really great life quote and pay life insurance premiums for years to find out that your insurance company went under OR will never be able to payout the benefits in case God forbid something happens to you.
Price of your Life Quote
The price of life insurance quotes available to you will vary depending on many factors or “risks” surrounding your life.
Your health (smoker /non-smoker), weight vs height, hobbies and habits all play a role in the price of your life insurance premium.
Always keep in mind that the healthier you are the lower your monthly premiums will be. By healthy we mean your optimal body weight, healthy blood pressure levels, heart rate, no history of high risk diseases, etc. They also consider activities such as extreme sports a high risk so those of you who do skydiving or other dangerous activities will set yourself up for higher rates / premiums.
Note: The minimal life coverage offered through your employer only stays with your employer. The amount is definitely not enough to cover your family for the long term and ONLY covers you if you are working for your employer. If you are not working for your employer at that time then you are not covered with your work life policy.
1st: Out of all the life insurance quotes available decide on a solid life company with a high credit rating.
2nd: If Riders are available (extra benefit added to the policy). Once such life insurance rider is the Waiver of Premium Rider or Disability rider which in case you become disabled and cannot work the Waiver of Premium Rider will kick in and your premium payments will be made by the insurance company.
3rd: Check for any additional fees in addition to the monthly premium.
If you know that you need to buy life insurance the longer you wait to get life insurance the more expensive your premiums will be. This is something to keep in mind for those who are checking life insurance quotes now and are surprised to see life insurance quotes premiums jump 1 or 2 years later when they check again.