Want the Best Term Life Insurance Quote? Avoid 3 Major Pitfalls

When most people begin contemplating insurance, most of the focus is placed upon obtaining the best term life insurance quote possible.  However, this motivation, along with two other factors, comprises three of the major pitfalls many consumers commit during the life insurance policy shopping process.

Pitfall #1: Only analyzing price when getting a term life insurance quote

Whereas obtaining the term life rates is important, price cannot be the only factor in your decision.  Not all insurance companies offer the same type of benefits, and some firms are much financially stronger than others.  With that said, you can make sure you get the best term life quote by making sure the insurance policy meets important criterion:

What is the credit rating for the insurance firm?  You want to ensure that the company will not default due to their weak financial health.  Check with Moody’s, Standard & Poor’s, or A.M. Best to ensure that your firm has an A rating or higher.

Can you renew your policy annually without taking a medical exam?  You do not want to undergo a medical exam each year just to renew your policy – and risk increased annual rates.

Do you have an ability to convert your term life insurance policy into a cash-value one?  Later in life, you may find the need to opt for a whole life, cash-value policy.  A convertible option will allow you to take your term payments and create cash-value.

Is the term life quote guaranteed for the entire term?  You want to ensure that your initial rates will remain the same for your entire term, whether that is three or 30 years.

Pitfall #2: Canceling an old policy before the new one is confirmed

Too many people cancel their old policy before their new term insurance policy is completely enforced – which leaves your family with a gap in coverage.  If the unfortunate were to occur during this time gap, that would be an even greater tragedy.

Indeed, it is very smart to re-evaluate the price of your current term life insurance coverage, especially as rates have fallen by nearly 50% in the last 15 years.  However, before you send in the cancellation papers for your old policy, make sure you have passed the grace period with your new policy, ensuring that you have full force coverage.

Pitfall #3: Purchasing term life insurance from an aggressive agent

If you decide to purchase term life insurance through an insurance agent, make sure the individual is not pushy or aggressive – or else, you may be encouraged to purchase policies that are not the best term life insurance options for your needs.  It is important that your life insurance agent is patient, listens to your needs, and recommends the best life insurance policies for you – instead of trying to push policies on you that are beneficial for their commissions.

However, given the ease of the internet, along with the fact that many websites encourage life insurance companies to compete in pricing against each other, many consumers are now buying life insurance online.  Often, obtaining the best term life insurance quote online is very convenient – and you can take your time in determining which policy exactly fits your family’s needs and budget.

Being aware of these three important pitfalls will help your family find the best term life insurance quote that will offer solid coverage should the unthinkable occur.