Is it really as simple as comparing the initial rates? Unfortunately, no, there are a number of factors to consider depending on what your objectives are.
Here are a few:
Length of term
Rates at renewal what are they and are they guaranteed.
Is there a possibility of needing permanent coverage? If so is conversion available, what products can you convert to.
Take a look a the insurance company offering the coverage.
An independent insurance agent / broker can help you find the right product at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
With term insurance, you're getting a lot of "bang for your buck" because you're only buying the coverage for a limited amount of time. There are hundreds of insurance companies in the market that offer term life insurance.
One thing you do NOT want to do is just apply to a bunch of companies at the same time. This can often hurt you in your pursuit of coverage because it can be a "red flag" to an insurance company (so-to-speak).
A critical factor in determining which carrier's policy is going to work best for you is the risk class they will offer you (the risk class determines the premiums for your program). Each insurance company has their own set of underwriting guidelines so you may not get the same risk class offer from one company as you would from another. Some companies are conservative in their underwriting (meaning they have stricter underwriting requirements) and others can be more aggressive (meaning they have more lenient underwriting). For example, company A may offer a given medical history a preferred risk class while company B could easily offer a standard risk class (requiring much more in premiums for the same coverage).
President, Lane Independent Agency, Southern California
Remember that Term is temporary, so evaluate your need and how long you will need it. If you truly buy term and invest the rest, then perhaps when you are years older, you will have set aside enough funds to fully protect your family at that time. For now then, you need insurance to protect your family due to your lack of accumulated funds. Figure out the number of years it may take to have enough funds. That would be a reasonable term for your term insurance. Or figure out when the kids may be out of the household and independent. Or if your spouse works, when they may have accumulated enough to be self sufficient. The longer the term, the more expensive it is per year's coverage, so be reasonable. Most opt for 20 year term, although longer is available from many companies. Go with a company you can count on. How long have they been in business? Will they be there for you? What is their reputation for paying fairly and quickly? Talk with your agent for the best price, for what is truly the best coverage. Quality is at least as important as price. Thank you. GARY LANE.
In evaluating Term Life Insurance, make sure that the policy is guaranteed, not just assumed to be guaranteed. By this I mean, check to see if the premium is guaranteed to not go up for the entire term, and that the face amount will not go down for the entire term.
Evaluate the life insurance company, to make sure it is rated at least A by AM Best.
Finally, evaluate the agency you purchase the policy through, to see if they are trustworthy, have a lot of complaints, and will be available to help you with questions or service requests down the road. Clues as to reputability for online agencies are how long they have been in business, whether they introduce staff members on their web page, if they are part of the Better Business Bureau, etc.
If you cover those three bases, you should make a good choice in term life insurance.
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Here are a few:
Length of term
Rates at renewal what are they and are they guaranteed.
Is there a possibility of needing permanent coverage? If so is conversion available, what products can you convert to.
Take a look a the insurance company offering the coverage.
An independent insurance agent / broker can help you find the right product at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
One thing you do NOT want to do is just apply to a bunch of companies at the same time. This can often hurt you in your pursuit of coverage because it can be a "red flag" to an insurance company (so-to-speak).
A critical factor in determining which carrier's policy is going to work best for you is the risk class they will offer you (the risk class determines the premiums for your program). Each insurance company has their own set of underwriting guidelines so you may not get the same risk class offer from one company as you would from another. Some companies are conservative in their underwriting (meaning they have stricter underwriting requirements) and others can be more aggressive (meaning they have more lenient underwriting). For example, company A may offer a given medical history a preferred risk class while company B could easily offer a standard risk class (requiring much more in premiums for the same coverage).
Evaluate the life insurance company, to make sure it is rated at least A by AM Best.
Finally, evaluate the agency you purchase the policy through, to see if they are trustworthy, have a lot of complaints, and will be available to help you with questions or service requests down the road. Clues as to reputability for online agencies are how long they have been in business, whether they introduce staff members on their web page, if they are part of the Better Business Bureau, etc.
If you cover those three bases, you should make a good choice in term life insurance.