To compare life insurance rates, be sure you are comparing the same type of policy to another. E.g. Comparing 10 year term to 20 year term is not a legitimate comparison.
Check to see how long the rates are guaranteed not to go up. If one 20 year policy is guaranteed not to go up in price for 20 years, it is not fair to compare it to a 20 year term policy that is guaranteed not to go up in 10 years.
Do not compare a policy by the rating they give you. Compare them by price. Ratings are just words. Price is where the rubber meets the road.
If you have a quote for a level premium that will not go up in price, and also quotes for graded coverage/policies that can go up in price, it is usually best to go with the level premium that will not go up in price, even if it is higher.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
First of all, don’t go to websites with life insurance rates. I know everybody likes to do this, but you’ll never get good information.
Why not?
Simply because you need to know the rate class for what you qualify with any given company. How do you really know you qualify for preferred? Preferred Best? Standard? The problem is that the vetting questions used on these websites are never thorough enough to give you a really reliable underwriting classification.
Besides, what about all the gray areas that need explanation? You used to drink heavily, but now you don’t. But you stopped only a month ago. Is that long enough to avoid a rated premium?
So what do you do?
You get yourself a broker who will prequalify you. He or she will compile a risk profile about you based on thorough and accurate quote information. He will advocate on your behalf to make sure you receive all the credit you deserve for the risk management and avoidance you are doing.
He will present this to selected carriers with a reputation for being competitive for a profile such as yours. Then, when you get numbers from different carriers, they will mean something because you know you really qualify for them.
.JPG){kind=avatar}
Check to see how long the rates are guaranteed not to go up. If one 20 year policy is guaranteed not to go up in price for 20 years, it is not fair to compare it to a 20 year term policy that is guaranteed not to go up in 10 years.
Do not compare a policy by the rating they give you. Compare them by price. Ratings are just words. Price is where the rubber meets the road.
If you have a quote for a level premium that will not go up in price, and also quotes for graded coverage/policies that can go up in price, it is usually best to go with the level premium that will not go up in price, even if it is higher.
Why not?
Simply because you need to know the rate class for what you qualify with any given company. How do you really know you qualify for preferred? Preferred Best? Standard? The problem is that the vetting questions used on these websites are never thorough enough to give you a really reliable underwriting classification.
Besides, what about all the gray areas that need explanation? You used to drink heavily, but now you don’t. But you stopped only a month ago. Is that long enough to avoid a rated premium?
So what do you do?
You get yourself a broker who will prequalify you. He or she will compile a risk profile about you based on thorough and accurate quote information. He will advocate on your behalf to make sure you receive all the credit you deserve for the risk management and avoidance you are doing.
He will present this to selected carriers with a reputation for being competitive for a profile such as yours. Then, when you get numbers from different carriers, they will mean something because you know you really qualify for them.