Buying Life Insurance

When buying for life insurance it is very important to work with a good agency, that can help you find a policy that fits your needs.  Term Life Insurance Finders knows there are several very important keys when it comes to finding a life insurance policy and we will discuss them below.

1) Pick the Policy that is right for you

There are several different core policies that over the years have been tweaked to perform many different ways.  Term Life, Whole Life, and Universal Life are the three basic life insurance types.

  • Term Life Insurance is generally inexpensive, has no cash value, and provides coverage for a specific term of years generally 5 - 30 years.
  • Whole Life Insurance is more expensive, has cash value, and provides coverage for your whole life.
  • Universal Life Insurance is usually in the middle of the two policies above when it comes to price, provides some cash value, and it provides coverage for your entire life.

If you would like more help understanding the difference in these policies
or would like some free insurance quotes please don’t hesitate to call
one of our advisors at (1.800.800.1397).

2) Coverage Amount

There are a lot of people across the United States that have life insurance, but most people do not have enough coverage.  The average person has about $40,000 in life insurance through work; however, the average American ha $10,700 in credit card debt, this does not include their cars or mortgage.  With this being the case I think it is safe to say that the average person needs a little more than $40,000 in life insurance.  

Experts across the country recommend several ways of estimating life insurance needs: Ten years of gross income in life insurance, 8-12 years of Net income in life insurance, enough to pay all your debt off and leave 5 years of gross income in life insurance, and the scenarios can go on and on depending on kids, business ventures, and debt.  A formula we have found to be sufficient is to have enough life insurance to pay off your debts, pay for any children’s college education that is unfunded, and leave 10 years of gross income.  The reason we recommend this avenue is because it seems to cover all the basics were none of your dependents will struggle, however, no one will turn into overnight billionaires.

3) The Right Company

As you may already know, carrier may charge a different life insurance premium in different situations.  Insurance companies specialize in specific market segments (ex: seniors, guaranteed issue policies, smokers), which makes their products more competitive in different situations.  We represent over 25 life insurance companies just so we can provide our users with more options when searching for a policy.  Another reason we represent numerous carriers, is because carriers look at different health conditions in various ways.  For instance company A may view a 200 cholesterol reading as just fine, while company B says it is too high.  In this situation company B would probably knock you up a rate class which in turn would cause your life insurance premium to go up, while company A would not charge you any more for your cholesterol reading.

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senior division manager Article added 08/16/2011 by Ryan Eaton
Senior Division Manager: Morgan White Group
ryan.eaton@morganwhite.com

For more info about Term Life Insurance, please feel free to contact me.
Submit basic questions to: seniordivision@morganwhite.com.

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