Last Updated: 05/15/2018

Term life, whole life, universal life, guaranteed universal life…the list goes on. How do you choose which one is the right type of policy for you?

Let’s say you decide to opt for a term life policy. You’re not going to immediately go with the first quote you get from a company, are you? We hope not! You want to compare your options and not only make sure that you’re getting the best deal, but getting the right perks to fit your needs.

The same reasoning goes when it comes to comparing policies. You may think you need a term policy, but in reality, a guaranteed universal life policy would be a better choice!

This article will discuss the different variables you should look at when you are looking to purchase a life Insurance policy.

Quick Article Guide:

1. Coverage Needs
2. Comparing Companies
3. Comparing Cost
4. Working with an Independent Agent
5. Questions? We’re Here to Help!

Coverage Needs

Naturally, it makes sense that the first step when purchasing a policy is to determine how much coverage you need, and how long you need coverage for. This is going to highly vary depending on the individual.

The main purposes of life insurance are to cover burial expenses once you pass away, fill the gap of lost income, and to cover any debts that you may currently have.

For example, if you’re single with no one else to support and have only made a few big purchases, a term policy with a lower amount of coverage ($250,000-$500,000) may work quite well for you.

On the flip side, maybe you’re the sole breadwinner of a household, and have a wife or husband and kids to support. With a mortgage and kids who want to go to college someday, you have a little more financial responsibility. And if you opt for a term life policy, but the policy expires before you pass away, it’s not going to do much good, is it? In this case, it may be wise to opt for a permanent life insurance policy, and choose somewhere between $500,000-$1,000,000 in coverage instead.

That’s why it’s vital to really sit down and determine what costs you’d like to be covered in the case of your death, and who may be affected by it.

To make things even easier, check out our handy dandy life insurance calculator to get an estimate on the amount of coverage you need.

Comparing Companies

Now that you’ve figured out what your coverage needs are, it’s time to apply! But not so fast – which company will you apply with?

There are so many life insurance companies to choose from, but not all are created equal. It’s important to look at what the company’s rating is from the independent rating agencies (such as A.M. Best). If the company has a high rating (such as an A+ or A++), that’s a good sign.

If you’d like to see in-depth reviews of the companies we work with, check out Our Providers page.

You also want to look at how long the company has been in business. If they haven’t been around for that long, you’re taking more of a risk if you choose them – their success rate isn’t definite yet and they may or may not be around in 30 years, or they may not have enough clients to pay your death benefit when the time comes. However, if you choose a company that has been around for multiple decades and has maintained a steady success rate, it’s more of a safe bet. Not to say that a newer company is necessarily bad, it’s just a factor you want to take into consideration.

Different life insurance companies also have different niches, or categories that they’re more lenient with when it comes to underwriting. If you have a certain area of your health or life that isn’t as good at others, you may want to shop around companies to find which one caters to that specific area. 

Say that you have high blood pressure. Company A may not cater to that certain health condition, and charge you $50 more a month than Company B, who is more lenient with people who have high blood pressure. Make sense?

Comparing Cost

You not only want to compare companies in terms of their niches and ratings, but their cost as well! This might seem obvious, but some independent agents don’t always compare costs for a client. Unfortunately many times, the client blindly trusts the agent, and ends up paying the higher monthly premium when they could’ve saved quite a bit of money (shame on those agents!).

Most independent agents will not do this, but it’s always wise to double check that you’re getting the best rate. You can always ask the agent to run a quote from another competitive company, just to see what the difference is, and to get peace of mind that they are indeed offering you the best rate.

If you decide to purchase multiple policies (see: layering your policies), you don’t necessarily have to purchase them from the same company. One company may give you a better rate for your first policy, while a separate company may be offering a better deal on your second policy.

We don’t ever want you to think that life insurance has to be this crazy, expensive thing. There are so many different ways to save money on your policy, so you can rest assured that you’re covered, while also not having to worry about paying a hefty premium. While life insurance is necessary, we understand not wanting to pay a great deal of money on it when you could be saving that money for more enjoyable things and experiences. That leads us right into our next section…

Working with an Independent Agent

We’ve already briefly mentioned independent agents, but let me tell you why it’s important to work with one.

Independent agencies work with multiple life insurance companies (Term Life Advice works with over 60!), so they have the ability to shop within those companies to compare costs and provide you quotes from companies they believe would be a good match for you.

When you speak with an agent who works directly with one life insurance company, they can only offer you a quote from said company. They also usually work off of commission, so they will say almost anything to get you to purchase a policy from them.

By working with an independent agency, not only do you save time by only having to speak with one agent, but you get the best rate while you’re at it! A pretty sweet deal, if I do say so myself. In addition, they can help you compare the benefits of the different types of life insurance policies. Within the two main categories of life insurance – term and permanent – there is an umbrella of various policies: no medial exam, whole life, indexed universal life, variable universal life, etc. Your independent agent will listen to your needs and concerns, and find the best fit policy for you based off of that.

Questions? We’re Here to Help!

Not sure where to begin on your life insurance policy search? Give us a call!

At Term Life Advice, our agents do not have sales quotas to meet, we’re just genuine people who want to match you with the best life insurance company possible. We work with over 60 top-rated companies, and have no doubt that we can find the best company for you.

If you would like to receive an accurate quote based on your age and health, as well as which type of policy and amount of coverage you should choose, give us a call. Toll-free, no obligations: 855-902-6494.

Our services are completely free, and there is no cost to apply for coverage. Give us a call today, or you can request a free online quote below to compare rates from more than 60 life insurance companies in less than a minute.