Whether you’re shopping for term life insurance or whole life insurance, you want to make sure you are getting the best value, not just the lowest rates. Here are some important questions to ask when getting quotes.
Purchasing life insurance is pretty easy these days, and rates are at some of the lowest in years. Life insurance is about peace of mind: You want to know that your loved ones will not suffer financially if something happens to you. Part of that peace of mind comes from knowing that you are dealing with a reputable company and agent.
First, start by getting some comparison quotes. Rates vary from one life insurance company to the next, so this is one way to make sure you are getting the lowest rates for your age. Get at least three or more quotes for comparison. A good place to do this is online at a comparison quote site, or from individual life insurance company sites.
Once you found a quote you like, ask the agent or company representative:
1. Are you and the company licensed in my state? The answer should be “yes” and you can also check with your state’s department of insurance.
2. What is the financial rating of the company? Financial stability is important and insurance companies are rated by several independent agencies including A.M. Best, Standard & Poor’s and Moody’s. You can also find this information online.
3. What professional designations do you (the agent) have? This can really give you an indication of the professionalism of the agent. After all, a professional agent is in this for a career and will go the extra mile to have a satisfied customer. Common life designations include Chartered Life Underwriter (CLU) and Charted Financial Consultant (ChFC).
4. Do you (the agent) carry life insurance on yourself? A serious professional would.
5. Have you (the agent) been convicted of a felony or misdemeanor? A difficult question to ask, but with some unscrupulous people out there trying to defraud people it certainly is a legitimate question.
You may also want to check with your state insurance department to see if the company or agent has received any complaints. And ask any other questions you have about the policy before you buy.
Whether you’re shopping for term life insurance or whole life insurance, you want to make sure you are getting the best value, not just the lowest rates. Here are some important questions to ask when getting quotes.
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