Nobody really enjoys wading through the multitude of forms involved with comparing and buying life insurance; but remembering a few of our basic pointers can lessen both the nuisance and the cost.
A good place to start is to discover what the policy excludes. Often, customers focus solely on what a policy covers. They ignore the exclusions. However, being fully informed can save you hassle if you have to file a claim. Read the policy for yourself and have your agent explain it to you. Then you can discuss whether upgrading to include specific exclusions is in your best interest.
Each year before you renew your life insurance policies, you should take a bit of time to review your needs. Things change from year to year and your current life insurance needs to reflect those changes. It would be nice if your agent brought up the subject but few do, so be prepared to do your own analysis.
Remember, as with anything, you usually get what you pay for so don't be fooled by exceptionally low prices. Life insurance policies are not all alike and they can differ greatly so be sure that you are comparing like products. That affordable term life insurance quote is an entirely different product than the more expensive whole life policy. If one company is charging a lot less than the others selling similar policies, you want to proceed with caution!
That said, shopping for insurance online can save you anywhere from 15% to 45% depending on the type of insurance and the company. There are several excellent insurance sites online so why not let your fingers do the walking and do comparisons? Ensure you're getting the most for your money by using a comparison quoting service. These services will provide you with several quotes from major insurers so you can compare premiums and coverage from multiple insurance companies. The cheapest life insurance isn't always be best!
Should a decision be made to go with another company, remember that there is always a fee associated with leaving a contract. The amount of the penalty is usually based on the length of time remaining on the deal. In other words, if you can wait until your current deal is done, that is the time to strike.
Try to find a company that you can stick with. Switching often can result in higher prices. You can earn discounts by showing loyalty over time. These discounts can add up to considerable savings. Only change companies if you have a particularly good reason. Don't change on a whim.
Of course, never omit important details and don't lie when applying for life insurance! For example, telling your insurer that you are a non-smoker when you actually smoke (even if only a few cigarettes) will result in a denial of your claim should you file one so you'll really be the one to lose and not the insurance company.
When you receive your new policy, be sure to look it over thoroughly to ensure that your coverages are correct. If you have any questions or concerns, or if something looks to be incorrect, call your agent for assistance.
Thursday, November 13, 2008
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