There’s little doubt that modern technology and the level of competition among insurers are two factors that have made it much easier for consumers to seek out and obtain the right insurance policy. And, with hundreds of different insurance companies carrying multiple different types of policies, consumers also have a more comprehensive than ever selection when choosing an insurance policy.
According to the Insurance Information Institute (III), over the last ten years, the 25 to 45-year-old age group has been the age range most consumers purchase their life insurance. III expects term life insurance premium rates to drop four percent compared to last year because of the falling death rates within the 25 to 44-year-old age group. The institute also expects whole traditional life, variable universal life, and universal life insurance premium rates to decrease.
Shopping for life insurance doesn’t have to be a dreaded, complicated, or feared process, but it will take a little preparation to ensure you get the best policy for your particular needs. III advises using the following criteria as you’re shopping for a life insurance policy:
Many life insurance policies are long-term commitments. Therefore, whatever policy is being considered, you need to ensure that it will be something you can pay the premiums on now and afford as a long-term deduction from your budget.
2. Price Comparison
Remember to compare the prices of several insurers before purchasing a policy, as premiums can vary from insurance company to insurance company. To make a basic price comparison, you’ll need to provide the insurer with your age; decide what dollar amount of insurance you’d like to purchase; determine if you’d like a term or permanent type of policy; and possibly answer yes or no on tobacco use, medical conditions, and dangerous job.
3. Stability Of The Insurer
You’ll want to check with rating agencies to determine how financially stable and robust any life insurer under consideration is.
4. Customer Service And Ethics
States are individually responsible for regulating insurance-related business conducted by insurers licensed within their state. Many states will issue an online report on how many complaints a licensed life insurance company has received against them within a specific time frame. The information can generally be found on the state’s insurance department website.
III recommends securing a new policy before canceling any existing life insurance policy. Another point to remember is that you might not be insurable for the same rate as your previous policy if you’ve had a health status change.
In closing, don’t forget to inform your life insurance agent (Brian Gruss) if you undergo any lifestyle changes that could alter your insurance needs, such as starting a business, having a child, divorcing, or getting married. Brian can be reached at 352-508-4221 to help you with your life insurance needs.