6 Tips for Finding the Best Life Insurance Plan for You

Life insurance is one of the best ways to protect your loved ones’ finances in the long run. Believe it or not, about 60 percent of people in the United States have some type of life insurance coverage in place, making it one of the most popular investments out there.

However, its popularity doesn’t mean that finding coverage is easy.

With so many coverage options and insurance companies to choose from, finding the best life insurance plan for your needs isn’t always simple. That doesn’t mean it’s not possible. You just need to know where to start and what to look for in each policy to find the right option.

Here are a few proven tips to help you get the coverage you need quickly and easily.

1. Understand Your Options

Buying life insurance isn’t as simple as choosing the first policy you find. You need to make sure you’re investing in the right type of policy and category of coverage.

Within the broader umbrella of life insurance, there are two main categories or policy types. These are term life insurance and whole life insurance. Each provides coverage in unique ways that impact how you and your family can use the benefits.

Term life insurance policies are valid for a set period of time and expire at the end of the policy’s term. Most provide coverage for between 10 and 20 years. At the end of the term, you’ll need to renew the policy if you want to continue having coverage.

Term policies are great for individuals looking for cheap coverage and those that only want coverage while they’re part of the workforce.

Whole life insurance policies cover you for your entire life as long as you continue making your monthly premium payments. These policies are ideal for people looking to lock in a low rate when they’re young or those with complicated family medical histories. These policies typically have higher premiums, but you’ll be able to lock in your rate for the rest of your life.

Think about what you want the policy to do and choose the type of coverage that makes the most sense for your needs.

2. Look at Your Budget

Before you start looking into different policies, you need to think about how much you’re willing to spend on your life insurance coverage. This number should be low enough you can afford the policy when your finances are tight without making it tough to cover your other expenses.

Policies can cost just a few dollars a month to more than several hundred dollars a month. It all depends on how much coverage you want and the type of policy you buy.

Having a firm number in mind will help you narrow down your choices and find a policy that works for your situation.

3. Speak With Your Employer

Many employers offer life insurance as part of their benefits. These policies are often more affordable than the ones you’ll find by speaking with a life insurance company directly.

Speak with your employer before you start shopping independently.

If they offer life insurance, get as much information about the policies and the premiums as you can. You can use this information to compare their coverage against the policies offered by different companies.

Remember, you’re free to choose an independent life insurance policy if you don’t like your employer’s options. You should still consider their policies when making your decision.

4. Think About What Your Family Needs

The purpose of life insurance is to help your loved ones cover any final expenses and find a way to make ends meet if you’re no longer able to provide for them. You’ll want to choose a policy that has a high enough coverage limit to make that possible.

Think about the types of costs your family has every month and how much money you bring in each year. You’ll want to look for policies with coverage limits that equal or exceed that number. This will give your loved ones the financial assistance they need while they adjust to their new normal.

Keep in mind that the higher your coverage amount is, the more you’ll have to spend on the insurance policy.

5. Shop Around

No matter what type of insurance you’re buying, it’s always a good idea to shop around. Get quotes from at least three life insurance providers and compare their quotes in detail.

Just make sure to get quotes for the same types of policies.

If you’re interested in whole life insurance, get quotes for that coverage from different companies. If you’re looking for term life insurance, get quotes for policies that offer the same term lengths and coverage amounts. When you get quotes for different types of policies, you won’t be able to make a true comparison between different providers.

As a general rule, you’ll want to choose the most affordable policy with the highest coverage limit.

6. Research Each Insurance Company

Unfortunately, some life insurance companies are better than others. They’re easier to work with, process claims faster, and distribute benefits quickly.

Before you settle on a policy, take the time to research each insurance company in detail. Make sure they’re financially stable and have a proven history of paying out benefits when claim-holders pass away. Groups like Standard and Poor’s have detailed ratings and information about most major providers.

If any of your research suggests that the company isn’t trustworthy, keep looking. As long as you choose a company that has strong finances, you’ll be in good shape.

Finding the Best Life Insurance Plan Is Possible

Investing in life insurance is the best way to protect those you love from financial strain when you pass away. However, with so many different insurance companies and policy options, finding the best life insurance plan can start to feel like a major challenge.

As long as you keep these tips in mind, you’ll be able to find coverage that works for your needs and your budget.

Looking for ways to improve your finances and streamline your savings strategy so your family can spend more quality time together? Check out our latest posts for more tips and tricks.