There’s a life insurance policy out there for everyone – but how do you know which one is right for you?
Shopping for life insurance can feel confusing. In fact, not knowing how much or what type of life insurance to get is among the top three reasons people don’t have life insurance coverage according to a recent industry study. With so many options out there, you’re not alone if you don’t know where to start. Here’s a quick breakdown of what to consider to find your ideal policy.
What to look for when comparing life insurance options
Some factors to look at when picking a policy include the following:
Policy type
Term life and permanent life are the two major types of life insurance coverage. Term life insurance provides budget-friendly, customizable protection for up to 30 years. Permanent plans cover you for your entire life and include an additional cash value feature. With both policies, your loved ones can receive a tax-free cash payout after you die, with no strings attached, as long as your premiums are paid.
While term life insurance is the more affordable, flexible option for most people, permanent life insurance can be a good fit if you have lifelong financial needs. Learn more about term vs. whole life insurance.
Coverage amount and length:
Once you know what kind of plan you want, you’ll need to figure out how much coverage to buy. Your ideal amount should be enough to cover your family’s current and future financial needs, such as your mortgage, income, debts, credit card bills, and college savings. Fidelity Life’s term life insurance calculator can help you crunch the numbers.
When buying a term life policy, you must also pick a term length that works for your situation. Here are some tips to get you started, so you can access life insurance quoting that fits your needs. Remember, the coverage amount and length you choose helps determine your policy rates, so it’s important to buy exactly what you need.
Life insurance policy costs:
Many insurance companies now offer online quoting, so comparing costs from multiple providers is simple. When considering the price, make sure you’re comparing apples to apples – different coverage lengths and amounts will affect the price. Try our free online quote tool to see your personalized life insurance rates.
Riders or other add-ons:
Your family has unique needs, and life insurance riders can help make sure they’re met. Riders are optional features that you can add to a current or new policy to customize coverage, like adding your child to your plan or getting your benefits early if you’re diagnosed with a terminal illness. Be sure to ask your provider about your options.
Medical exam requirements
Whether or not a life insurance policy requires a medical exam can be a determining factor for some people. Based on your age, health, and comfort with taking a medical exam, you may choose an option that most closely aligns with your needs. For example, if you’re an older adult with a chronic medical condition, you may opt for a senior life insurance policy with no medical exam. On the other hand, if you’re young and generally healthy, you may submit to an exam hoping to secure the best rates.
Policies that forgo the medical exam requirement may have higher premiums as a result. So it’s important to work with a licensed insurance agent to understand the right option for your unique situation and budget.
Insurance company reputation:
You want to ensure that your insurance company will be around when you need them. A company’s financial rating can tell you how sound they are and if they can meet their commitments to their customers. Similar to car insurers, most major insurers have solid ratings, but it’s still a good idea to check. Do your due diligence with some background research. Read Fidelity Life’s commitment to financial stability to our customers.
Let a professional help you compare life insurance options
Understanding your options can be overwhelming, which is why it can help to talk with someone who’s able to guide you through the process. At Fidelity Life, our agents are ready to answer your questions and show you how to compare life insurance plans. Get in touch with us today.
At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.
