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Term Life Insurance at Great Rates, Insurance Education, Budgeting & Finance

Feeling sticker shock? Why price should NOT drive your life insurance coverage decision.

March 10, 2020

 

We’ve all heard the old saying: You get what you pay for. While looking for a bargain when you need a dress may be wise, you’re better off paying for quality and stability when it comes to products that could help protect your health, family and future.

Life insurance is one purchase where quality and stability matter. After all, it’s a purchase you’re making to keep your family protected and help give you peace of mind. And your choice can last the rest of your life.

So, what should drive your decision to choose a life insurance policy? These are 4 factors you need to think about.

Is the company you’re considering strong and reputable?

One way to check out the financial strength of an insurance company is by looking at its ratings. An insurance company’s credit rating lets you know if they’re reliable. Companies with good ratings can pay their policyholders’ claims and honor the guarantees in their contracts. You can check out AM Best, Fitch, Moody’s and Standard & Poor’s to see a company’s ratings.* Each rating agency has its own system for rating life insurance companies.

You may also want to check the company’s rating history (watch for things like big changes from year to year).

Is the policy a whole life policy or a term life policy?

There are more differences than just premium and time that someone needs to consider. They can include the cash value of the policy - and whether or not it expires.

The best way to describe the difference between whole life coverage and term life coverage is the difference between “if” and “when.” Term life insurance is for “if” you pass during a set period of time (usually 10 to 30 years). Whole life insurance is for “when” you pass. That means you keep the policy your entire life, and it pays out when your loved ones need it – no matter when that is.

Generally, premiums for term life policies tend to be lower than premiums for whole life policies. That’s because term life policies expire, but you can keep a whole life policy for the rest of your life. Keep in mind that term life policies don’t gain cash value over time, and whole life insurance policies do.

So, if you’re looking at two different policies – one that is $10 per month that expires in 10 years and another that’s $40 per month but last the rest of your life – you’ll want to think about these differences and consider the type of coverage you really need.

What kind of service does the company provide?

Choosing the right policy can seem daunting. And it’s important during that process to know you have an expert on your side who can answer questions and guide you toward a policy that fits both your needs and your budget.

For example, our agents are all non-commissioned. And you can rest assured they’re giving you solid advice and guidance based on years of experience.

There’s no pressure to buy our policies. Our agents are here to answer your questions – even if you aren’t ready to make a purchase yet. When the time comes to buy, you can be confident they’ve helped you make the right choice for you and your loved ones.

What’s the application process like?

Not all application processes are equal. For some policies, applying is a time-consuming project. The applications themselves can be long - and they may even require a medical exam. Our policies aren’t like that. We’ll tell you exactly what you need for your application up front, so there are no surprises.

Instead, you can get coverage quickly and on your schedule.

How Our Life Covered is different

Term life insurance policies, like Our Life Covered, are great for young professionals, moms and career-oriented women who need coverage to protect their families in case something unexpected happens.

If you don’t have coverage yet, Our Life Covered is here to help and support you at every stage of the life insurance shopping journey. You can get started with a quote (it literally takes a few seconds). If you have questions, please don’t hesitate to reach out, whether it’s by phone (888-828-9760), text (636-590-7416), email or live chat.

Whether you’re trying to start or join a conversation, you can also follow us on Facebook or send us a message directly. Let’s talk!

* Ratings are subject to change, and are a measure of the company's financial ability to pay claims and to honor any guarantees provided by the contract and any applicable optional riders. The rating is not an assessment or recommendation of specific products, policy provisions, premium rates, performance of the products, or to the practices of the insurance company.

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Jennifer Robinette

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Jennifer Robinette

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