How to Find the Best Life Insurance Policy For You

 


How to Find the Best Life Insurance Policy For You: With the wide variety of life insurance policies available, pinpointing the right one can be a challenge for any buyer. Don’t go it alone when trying to find the best life insurance policy. Financial advisors and experienced life insurance agents have the background to help you make the right decision based on your goals and budget. Look at financial strength ratings. A strong financial strength rating is more than just peace of mind that the company won’t go out of business decades from now. Insurers with greater financial strength can be less likely to need to increase internal policy costs and premiums in response to challenging financial times.

Select life insurance as part of a larger financial plan. Here’s where a financial advisor can explain life insurance options in the context of your larger personal financial goals. Don’t assume insurers offer competitive pricing for everyone. Insurers want your business, but they all operate from their own playbooks. Premiums can vary wildly and, for cash value policies, cash value growth can be very different among companies and policies. Be aware that a life insurance quote for a cash value policy may not reflect what you’ll actually end up paying over the years to keep the policy in force.

“Current regulations in some states and for some products permit insurers to ‘quote’ a low premium while charging high costs—without disclosing that you may need to pay additional premiums later in order to avoid a lapse,” warns Barry Flagg, founder of Veralytic. Insist that cost disclosure for universal life insurance is included in any proposals. A life insurance quote reflects what you’ll be billed for, but doesn’t tell you anything about a policy’s internal costs, such as expenses and fees, and the cost of insurance within the policy.

Be sure to insist that any universal life insurance illustration include detailed expense pages or policy accounting pages. Products with a low premium quote could have higher internal costs, which can slow your cash value growth.

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