By Life insurance is tricky. Unlike auto insurance, not everyone needs it. Take singles without dependents. For these people, it is not essential.
But if your untimely death would be catastrophic for those you leave behind, then make sure you are well insured. And take the time to shop around for the best coverage for the lowest premiums – from a reputable company, of course.
Kevin Brasler is Editor-in-Chief of Consumers’ Checkbook, an independent, non-profit consumer organization. He recently experimented by researching a $ 500,000 20-year term insurance policy for himself.
“With a business, I could pay around $ 700 a year for term life insurance. With another, I can pay over $ 1,500 a year, â€he said.
Over the life of the 20 year policy, the lower cost policy would save her $ 16,000. So you can see how important it is to compare prices.
“The good news is that it has become quite easy to shop around for term life insurance policies. There are several websites that will compare dozens of different companies and give you the lowest rates, depending on your age, your medical situation and other things, â€Brasler said.
Consumers’ Checkbook liked a site called Lifequotes because it generated a list of prices from various companies without requiring an excessive amount of personal information.
Of course, there are other sites to try, including PolicyGenius and Ethos. And Brasler says contacting local independent insurance agents can also help you find low rates.
Before you start shopping, be aware that a term policy only provides coverage for a certain number of years and expires at the end of the term. You do not receive a refund unless the insured dies during the term of the policy.
Permanent life insurance, which includes whole life insurance, provides coverage for life. This type of insurance is marketed as an investment, and therefore it is much more expensive than term policies.