Some things to look at when comparing Term Life Insurance policies are:
1) Length of the term. Longer terms usually cost more, so if you are not comparing policies with the same term, you are not getting a valid comparison.
2) Guarantees. If the premium is not guaranteed to stay the same for the entire term, you cannot compare it to a policy that is guaranteed to stay the same for the entire term.
3) Riders. You need to make sure each policy has the exact same riders (if any) to make an accurate comparison.
4) Convertibility and/or Living Benefits. These add value to a policy, so keep that in mind if comparing a Term policy with these features to one that does not include them.
5) Health Rating. One company may rate you Standard, while the other may rate you Preferred. You pretty much need to talk to an experienced agent to find your best health rating. But another factor is:
6) Price. One company may charge you $100/mo for Standard, while another company may charge you $100/mo for Preferred. So it is important to look at price in addition to health rating.
7) Agent. It never hurts to run your Term choices by an agent you can trust, and get their take on the comparisons. Life insurance can be complicated and agents should have the ethics to help you save money while getting the best features.
That is a great question! Really the only thing that will differentiate on 5 year term policy from another is the price, the company issuing it, and whatever perks come with the policy. Since there really aren't many perks, it really comes down to the price, both now, and if you needed to renew, and the financial stability and trustworthiness of the company you purchase it from. I hope that helps, thanks for asking!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Generally term life insurance is very inexpensive. Make sure the policies are comparable in benefits and then compare by cost. One benefit to look for is, “can the policy be renewed after the initial term?” Another benefit to consider is the ability to convert the policy to permanent insurance without medical information.
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1) Length of the term. Longer terms usually cost more, so if you are not comparing policies with the same term, you are not getting a valid comparison.
2) Guarantees. If the premium is not guaranteed to stay the same for the entire term, you cannot compare it to a policy that is guaranteed to stay the same for the entire term.
3) Riders. You need to make sure each policy has the exact same riders (if any) to make an accurate comparison.
4) Convertibility and/or Living Benefits. These add value to a policy, so keep that in mind if comparing a Term policy with these features to one that does not include them.
5) Health Rating. One company may rate you Standard, while the other may rate you Preferred. You pretty much need to talk to an experienced agent to find your best health rating. But another factor is:
6) Price. One company may charge you $100/mo for Standard, while another company may charge you $100/mo for Preferred. So it is important to look at price in addition to health rating.
7) Agent. It never hurts to run your Term choices by an agent you can trust, and get their take on the comparisons. Life insurance can be complicated and agents should have the ethics to help you save money while getting the best features.