Are you looking to buy life insurance or renew the coverage you have? In this article I’m going to give you all the tips and information you will need to get a good life insurance quote.
What Are The Fees
With life insurance the fees can vary greatly from one policy to the next. For example when looking at a term life vs whole life insurance policies, term policies will hold the same cost of insurance through out the entire period of the policy but when you go to renew the policy the cost will usually increase depending your age and health.
On the other hand whole life insurance, also known as permanent life insurance will change from year to year. However as the cash value builds inside of these policies the cost of insurance will usually go down. For example, if you have a $100,000 policy and have $75,000 in the cash value you are only paying for $25,000 of insurance.
You will also what to be aware of certain types of life insurance, especially when you get a high risk life insurance quote. A lot of times the internal fees will be a lot higher than if you would have gotten a normal term policy.
How Is The Cash Value Illustrated
Another thing you need to pay attention to is the cash value and the interest rate they apply to it. For the most part fixed life insurance policies like whole life and indexed universal life insurance will never have excessive interest rates.
However, with variable universal life insurance the interest rate can be changed to as high as 12% rate of return. If you see these kinds of rates or higher in the illustration it should throw up red flag. In fact ever illustration you look at that contains a cash value are required to show a 0% rate of return illustration.
What Kind Of Riders Are Their
It also makes a big deal as to what kind of riders you add on a policy. For example if you were to have a permanent life insurance policy with a base amount of $300,000 for a death benefit the cost of insurance would be a lot more.
However if you would have gotten only a $100,000 in base coverage and added a $200,000 term rider onto the policy your cost would have been cut down dramatically.
The Next Step
Now that you know what to look for are you ready to take the next step? If so before you make any hast decisions make sure you get several quotes from respectable life insurance agents. You never know who might have the best deal.