11 out of 10 Americans dread talking about their passing, that’s just a fact. But the longer you avoid the topic of your leave-behind legacy, the harder and more expensive the insurance your loved ones deserve becomes. And nobody wants expensive life insurance.
Our independent insurance agents help zero in on your life, and afterlife, goals to guide you toward the right type of insurance for you. They'll shop and compare policies from multiple companies to find the right coverage at the right price.
But before we high-five, let’s talk a bit about your life insurance options, what it’s going to cost you, and how the insurance company comes up with those costs. So away we go.
First off, it's important for you to understand what the heck life insurance is, and why on Earth you'd need/want it:
Life insurance comes in one of three options, with a number of sub-options out there as well. But the decision can be tough with so many delicious flavors, so you'll definitely want to do your research and talk with an agent about which one works best for you.
Basically, your options are:
The insurance company starts by evaluating a series of risk factors (like age, gender, location, etc.) that have certain costs associated with them. The costs of these risk factors is typically determined through studies of historical trends, analytical models, and a whole bunch of other super- sciencey/mathy stuff.
Next, they’ll check off the attributes that apply to you, tally ‘em all up, add some profit margin and—ka-chow—you’ve got your life insurance premium. However, due to competition from other companies, they might actually lower the price a bit. So, bonus.
NOTE: Premium costs are subject to change—the insurance company may gradually increase your premium over time to keep up with the financial demands of offering the coverage.
When an insurance company is molding your perfect policy, they’re looking at a few factors, like:
In short, the cost of your life insurance policy will be determined by the perceived risk of you dying within each premium year. If you're on the younger/healthier side, it'll be cheaper. If you’re not, sorry, it’s going to cost quite a bit more.
Of course, the more steps you take towards the healthier side (such as quitting smoking or adding a parachute to your skydives), the more you can decrease the cost of your plan. Talk with your agent about it, but to get started, here are a couple of fun(ish) cost examples:
Comparing policy rates by yourself can be tricky and seriously time-consuming. Your insurance agent will have seen and done it all before, and they know exactly what's important to consider when browsing coverage options.
Plus, since they're not tied down to one insurance company, they've got the freedom to shop, compare and assemble all the pieces of the coverage puzzle for you. You’re welcome, we know how you feel about puzzles.
Look, we know what you want super-quick-and-easy life insurance quotes in under a minute. Trust us, we get it. But choosing speed over accuracy can really come back to bite you in the end.
Plus, online companies might leave out options that'll save you some serious green, while conveniently leaving in factors that present higher risks and leave you with a pricier policy. And nobody wants that.