How do I Decide What Life Insurance Company to Buy From? (Part 2 - Price)

Just buy your life insurance from Garden State Life Insurance of course. End of article.

Just kidding.

I realize this is a weird article coming from a blog sponsored by a life insurance company, but try and hear me out. This is part two in a series of articles that has a few points to consider when reviewing your options whether you are interested in buying insurance from Garden State Life or not.

Price

While price may be the most important or only factor for most people, I purposefully did not talk about price in part one of this series. I wanted you consider other factors before you tune me out. Just because a company is offering the cheapest product you can find there are other factors to consider.

For the most part, this is going to come down to how much work you want to put into finding the lowest price. There is not a source or company that is always going to provide the lowest price for everyone. For example, some companies have more favorable rates for people who smoke and some may place more emphasis on a prior medical condition you had and charge higher rates. Just because you use a quote website or an agent that can quote multiple companies does not mean that you are getting the best deal. Most agents can only sell products for the companies that they have licenses to represent so you may have to talk to multiple agents or visit multiple sites before you find the best deal.

Also, when you are comparing rate quotes you need to make sure that you will actually qualify for the product. Many quote services will quote you the super preferred class of rates, but in the end you may only qualify for the standard class based on your personal or health history, which will have much higher rates than what they quoted you originally.

Also, be sure to only compare prices between similar products. A whole life product or a simplified issue product may have a higher price than a fully underwritten term life insurance product, but they both offer additional features for that price in return (e.g. whole life insurance has cash value and simplified issue life insurance is more convenient and does not require a medical exam.) Find the type of life insurance product with the features that you want and then search for the company that has that product at the price you want to pay.

How do I Decide What Life Insurance Company to Buy From? (Part 1 - Ratings)