Choosing Your Life Insurance Company
When you start thinking about buying life insurance, the most important thing to do is to call in an experienced insurance broker. The whole subject of life insurance can be confusing for the novice and can lead to one’s making mistakes that one will regret in later years.
Insurance is a long term investment and it as well to get it right the first time. The most expensive thing one can do is to cancel an insurance policy. Don’t let this happen, get good help from the beginning. Here are some pertinent questions you can ask your insurance adviser:
o Is the insurance company financially secure?
o Does it have a good claim payment history, good customer service, and competitive prices? Note that independent companies such as Standard and Poor’s, A.M. Best, Moody’s, and Fitch rate insurance companies provide information on their financial solvency.
o Is the insurance company a member of the Insurance Marketplace Standards Association (IMSA)? This is a voluntary organization; companies that qualify for membership adopt IMSA’s ethical conduct principles.
Your state insurance department and the Better Business Bureau can provide valuable information on finding a good insurance company. Before buying any life insurance product, be sure to read the policy carefully and get clear answers to all of your questions.
Insurance is expensive. Here are a few ways you can save money:
o Don’t buy insurance if you don’t need it and don’t buy more insurance than you need to provide for your loved ones.
o Shop around for life insurance while you are in good health. Take care of yourself by exercising regularly and maintaining a moderate weight. Don’t smoke.
o Look for a guaranteed renewable policy if you buy term insurance. That way you won’t have to shop for a new policy when you’re older, nor will you have to pay more if your health deteriorates.
o Carefully consider additional riders, which are optional forms of coverage, and make sure you really need them.
If you have the option, participate in an employer sponsored group life insurance, even if you have to pay for it. This form of life insurance coverage, known as group insurance, is generally less expensive than comparable plans offered to individuals. You can obtain coverage up to a certain level without providing evidence of good health, and group insurance plans typically provide for continued coverage during periods of disability.