YOU ASK:

What should I look for when I compare term life insurance quotes?

WE ANSWER:

A rule of thumb when comparing term life insurance quotes is to evaluate the overall performance of the policies that you are being offered. This sometimes looks very confusing, especially since there are over 1,600 insurance companies offering hundreds of life insurance products. You can, however, make use of some basic tips to guide you throughout the process.

Factors to Consider when Comparing Term Life Quotes

Premium rates are not the only factor to be considered: it is crucial that the differences in each individual policy's provisions are measured against the difference in premiums.

To evaluate various term life insurance quotes, you should make sure that you compare different policies with similar term length and similar coverage. For example, you should compare a 15-year level term life policy with another 15-year level term life policy, and not with, say a 10-year decreasing term life policy. It is extremely challenging to compare different term life insurance plans, such as a guaranteed level premium and an annual renewable term policy.
It is of significant importance to find out how many years the premium rate is guaranteed for.
Check to see if the term life policies have a convertibility option, i.e. if they can be converted to permanent policies at the same rate, without proof of insurability. You should look at the period of time during which conversion can be made, and the number and kind of conversion options that the insurer provides.
It is very important that you are given the chance to purchase some or all of the following riders: return of premium, disability waiver, accidental death benefit, family rider, child rider, terminal illness rider, guaranteed insurability option.
Be sure to choose one of the best and most reliable insurers by check each company's financial strength ratings according to rating organizations such as Standard and Poor's, Best, Fitch, Moody's and Weiss. Typically, a good insurance company will be rated with an A, A+ or A++.

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