How to Find the Best Life Insurance Rates?
Finding the best life insurance rates on the internet may seem like it is just a matter of entering your age and smoking status and the type of life insurance you are looking for into a site and you would get the best rates for life insurance – term life insurance, whole life insurance or universal life insurance. However, if it was that easy, the government would not require that only people who have gone through an extensive course in life insurance with case by case supervision for the first two years can sell it.
The best life insurance rates are really the lowest cost insurance that covers the needs of you, your family or business risks now and in the future. All that life insurance does is move the financial risk that you die early from your family or business to an insurance company. Most of the family type financial risks are to cover the mortgage and plus your families standard of living. To enable your family to life in the same home and have the same lifestyle. You can go to an insurance calculator to calculate the dollar value of that risk for your family.
Once you know the risk, you can go to a web site and find out the best rates for life insurance to cover off this risk. But what do you purchase? Do you purchase a ten year term, a 20 year term or even a 30 year term policy to cover off your risk? For some, the purchase of a combination of these terms is recommended as the risks are not the same for 30 years. They tend to drop so one could purchase sufficient insurance to cover this off by layering different amounts of term 10, 20 and 30 year insurance. This will give you a blended life insurance rate which drops every ten years as the financial risks associate with your death decrease. Others might be best served by a term policy for 10 or 20 years depending on their budget and how long the risks will need to be covered by life insurance.
How do you get this blended rate from your internet search? You simply cannot get life insurance rates for more than one person and amount and type of insurance from these sources. Many companies offer discounts for spouses as well as discounts based on the total amount of insurance purchased even if it is split amongst different terms. In addition, these discounts differ amongst companies. Insurance agents will use more powerful tools to get the best life insurance rates for these combinations of amounts so that you get only one policy fee and get credit for the total amount of insurance purchased. The savings are significant and the choice of company is important.
A good broker will also inquire about your health and lifestyle to determine if you might qualify for a discount based on your health and lifestyle. Many companies offer discounts that can exceed 30% for really healthy people with very safe lifestyles. If you have medical or lifestyle issues, the use of a broker is essential as he will use his knowledge of different company’s underwriting to get you the best life insurance rates for your situation.
The average sale is a little over $1,000 per annum – likely close to $50,000 in your life time. Why would you not seek the advice of a professionally trained broker to help you make get the best life insurance rates when it does not cost you a penny? They are paid a commission by the insurance company.
The most important thing you can do to get the best life insurance rates is to select an experienced broker who represents lots of companies so he can choose the best one rather than a broker who represents one or just a few companies. Let them do the work for you. In particular, do not just go to a bank’s website and buy your insurance because they appear to have the best life insurance rates.
The life insurance broker should be able to at least match that rate for life insurance, and many times beat it. Get the benefit of the advice from an experienced independent life insurance broker – you can still save the time of doing it over the phone and through the web but get take the time to get their advice and then purchase it through them for the convenience.