No one wants to think about dying, but every one of us wants to be sure our families are protected in the event of a tragedy. Fortunately, life insurance exists to give us a measure of comfort so that, when we do pass, we know that our loved ones will be taken care of financially. The question is though, “what do I consider when I compare life insurance plans?” It’s a valid question considering that there are so many options available from so many companies. Let’s take a look at the two most important things you should consider when you compare life insurance plans.
Of course, value is important, so you will definitely consider the cost of the plan. If you come across more than one company that offers identical plans, it makes since to choose the company with the lowest premium. However, look at the fine print. Before signing on the dotted line, find out first if the premium is a level premium, or if it changes from year to year. In other words, is it a stepped premium? If the insurance company that is offering the lowest rate for the identical plan has a stepped premium, you can bet that your ‘great deal’ will not be so great in the near future.
Also consider whether there are any hidden fees in addition to the premium. These could be labelled as administrative fees, or something else. Either way, be aware of them because they can add considerable cost to your life insurance policy.
As you compare life insurance plans, you will most certainly scrutinize the benefits portion of the insurance plan’s profile. When you do that don’t forget to assess whether or not those benefits are subject to change, and if so, under what circumstances.
You also want to consider life insurance plans that offer flexibility. Life changes, and so your life insurance plan should be able to change as well. Look for any hidden fees associated with potential changes as well.
Finding a great life insurance plan starts with a comprehensive search. Compare life insurance plans closely, and protect your money and your family by opting for a flexible plan with a reputable company that comes with no surprise or hidden fees.