There are several things that you must consider before zeroing down your insurance policy. According to Gary P. Cubeta of Insurance for Final Expenses, “most of the time, the burial insurance companies have agents who will assist you with the right policy.”
Here are a few things that will help them in determining the best policy for you.
Age
One of the key determinants of how much and what type of life insurance you should buy is yor age. The younger you are, the more life insurance options will be available to you. Some policies, like term life, are typically only available to people who are younger than the age of 60.
Gender
Women typically live longer than men by about seven years, so policies for women are typically les expensive than men’s policies. However, the gap between men’s and women’s life expectancy is starting to close, and this change is reflected in the price and procedures of new life insurance policies. Age and gender are two of the biggest factors that determine the cost of your insurance premiums.
Your Health
Your health will also be a determining factor in how much life insurance you will need and be able to purchase. Most insurers will require a physical exam before selling you the policy, and the healthier you are, the lower your costs will be. If you smoke, expect to pay the highest rates for insurance. Generally speaking, the younger you are, the healthier you are expected to be. The insurance company will look at health conditions like high blood pressure, sleep apnea, heart disease and diabetes to determine how much you will likely pay for life insurance.
Health factors is a major reason that it pays to have an insurance agent who will follow up with you every few years. If you are suffering from a condition like high blood pressure and get it back to normal in a few years, your agent may be able to have the price of your premiums reduced.
Your Budget
Generally speaking, term life insurance tends to be less expensive than whole life insurance that builds cash value over time. With a term life insurance policy, you select a term, typically between 10 and 30 years, during which time your life is protected. If you outlive the policy, you can then buy a new one, which will likely be significantly more expensive due to your advanced age. A whole life policy’s premium stays the same over the life of the policy, and is based on the age you were when you initially bought the policy.
Your Specific Needs
Let’s say you just bought a house with a 30-year mortgage, and you want to be sure that you will be able to cover the mortgage in the event of your death within that period. Buying a 30-year life insurance policy is a good way to ensure that your family will be able to stay in your home and continue to make the payments. You can ask your insurance agent about whether fixed-term or whole life policies work best for your financial situation.
The first step in finding the right agent is to decide whether you want to go with an independent insurance agent or a captive insurance agent. There are two main types of insurance agents, and it helps to know which one will work best for your insurance needs. There are major differences between the two, each with its own benefits and drawbacks, so it pays to know exactly how they work.
Independent Insurance Agents
Independent agents don’t work for a single company, they are qualified to sell the full range of insurance products from among the thousands of companies available. Choosing an independent agent gives you choice. You are not limited to one company’s pricing or offerings, and you can always keep the same agent should you decide to switch. Independent agents often get paid higher salaries than captive agents and set their own goals, which means that they are less likely to steer you to higher priced products in order to make sales quotas.
Another benefit of independent agents is increased flexibility. When an agent works as a captive, working for one agency only, they often lose clients if the company raises its prices or changes its policies. If your insurance company changes policies or raises its rates, you can always stick with the same agent and simply switch to another company. Independent agents also tend to work harder to develop high-quality relationships with their clients—they’re responsible for getting new clients and keeping them happy, so they often go the extra mile to make sure you get exactly what you need.
