Is a Life Insurance Comparison Really Necessary?

Hello again Beeler Bloggers,
I just finished a three day intensive training seminar and I really learned some new and innovative ways to better serve my customers & community.


One of the questions at the seminar focused on whether a Life Insurance comparison/review is really necessary for our clients

When you consider a life insurance policy, you really do need to do a life insurance comparison. This is to ensure that you get the best possible rates and the best possible policy for your needs. Different companies sell different types of policies so you need to do a life insurance comparison of all the different types available. You also want to get a policy with low cost premiums.

With a life insurance comparison, you have to decide whether you want whole life (also called cash value) insurance or whether a low cost term life insurance policy is right for you. There is a significant difference between the two.

Term life insurance is only good for a specific period of time. If you do not die within the term selected (1, 5, 10, 15, 20, & 30 year terms are generally available), then the life insurance policy expires.



If you still have a need for the term life insurance after your first term expires you must meet medical qualifications for the renewal policy again and pay premiums based on your higher age.  Your term renewal premuims are usually much higher than you were paying in the first term.  So, when buying term life insurance you must realize that the clock is ticking and the policy only pays a death benefit if you die during the term.  If you don't die during the initial term and need coverage for another term the premiums will be higher and you'll have to medically qualify again.

Whole Life/Cash Value insurance lasts for your whole life and has options included to help you accumulate money in an account that is tied to your life insurance policy.
There is not an expiration date and your premiums traditionally remain the same for your "whole life" .

This Whole Life policy will cost more than a Term Life policy in the early years but the additional premiums paid in those early years fund an account tied to the policy that accumulates a "cash value".

Whatever your life insurance need may be, you need to make sure you are comparing the same thing when you do a life insurance comparison.
For example, a comparison of quotes for low cost term life insurance with those for Whole Life/Cash Value insurance would be like comparing apples and oranges they are not the same at all.



The best way to choose the right life insurance is to develop a relationship with a local agent and meet with him/her to discuss your needs.  At Beeler Insurance Agency we would love to create that relationship with you.  To contact us about life insurance just visit this link http://www.beelerinsurance.com/life/default.aspx
Until next time,

Chris Beeler