When it comes to shopping for life insurance, many people are going online to find affordable rates. Why? Because shopping online for life insurance is an easy and convenient way to compare quotes without having to drive around town or spend hours on the phone with an agent or call center. And if the price is too high or if you don't like the coverage, you can simply move on to another insurance company's website with a click of your mouse.
Be smarter about shopping for affordable life insurance quotes online and consider these three tips before you start gathering quotes or deciding on a policy.
Tip #1: Know how much you need
Many people may be jumping on the computer and plugging in round numbers without asking themselves, “How much life insurance do I need?” Resist the urge to go shopping until you do the math. Otherwise, you might end up with an inexpensive policy that doesn't pay out enough to cover the needs of your loved ones. Or, conversely, you may be spending money on a policy that exceeds your family's needs.
For an estimate on how much you might need, begin by using a life insurance calculator to get you started. Keep in mind these calculators are only an estimated assessment, and for a more detailed analysis you should consult with a financial advisor or licensed insurance professional.
Tip #2: Know what policy options are available
Many life insurance policies offer various options that can be purchased at an additional cost. These “add-ons” include policy riders or endorsements that can greatly enhance your coverage.
For example, some policy riders will allow you to purchase more insurance at a future date without a medical exam. Others, such as an accelerated death benefit rider, will allow you to access a portion of your life insurance policy's death benefit in the event you are stricken with a terminal illness. Be sure to research what options you can include in your quote, and whether or not they are right for you.
Tip #3: Get quotes from a reputable company
A great quote from a company with a less-than-healthy financial history isn't necessarily a good deal. Imagine paying on a life insurance policy for years and then, when you or your loved ones need it the most, finding that the company doesn't have the funds to pay your claim.
Get quotes from companies that have been around for a while. Look around on their websites and read a bit more about the company and how long it has been in business, and check on its insurance company rating.