Ten Things To Know When Shopping For Life Insurance

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Important Information To Consider

A quick reference guide of things to know when shopping for Life Insurance

  1. There are two primary types of Life Insurance – Term, and Whole Life.  Whole Life combines an investment vehicle with “normal” life insurance and  comes in various forms. Term Life offers coverage for a set amount of time only, after which the policy will generally expire.
  2. The vast majority of Life Insurance policies are sold by agents, rather than purchased online.
  3. Whole Life Insurance is expensive – much more so than Term Life Insurance.  Purchasing a Whole Life policy with a low face value (to save cost) may leave you underinsured.
  4. Many Whole Life policies are built on assumptions.  Unless they include a guaranteed cash value amount, Whole Life payouts are based on assumptions of investment returns (just like many other investment vehicles) and are subject to fluctuations in the market.
  5. Buy enough coverage to support your beneficiaries.  Make sure the Face Value is an amount you are comfortable leaving behind should you pass away.
  6. Match the term of the policy to the term you want covered.  You want the policy to last until your dependents are self sufficient (such as when they graduate college).
  7. Do your research.  There are plenty of resources available to help you make the right decision.  Browse the information and resources on Life Insurance at Bills.com.
  8. Buy when you’re healthy.  Life Insurance is cheap when you are young and healthy and expensive when you are older and sick.  Do not wait until something happens to start thinking about your dependents.
  9. Tell the truth.  Many people fudge on their Life Insurance Application to save premium, however this can have numerous negative consequences – especially if you fudge your age.
  10. Harness the power of the Internet.  Garnering multiple quotes has never been easier.  Take advantage.
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