Differences Between Companies
The
following is a brief list of some of the factors that you will
need
to consider when comparing products and companies:
Insurance
Company Financial Strength - Not all life insurance companies are
the same. Some are very large financially, some are small. Some companies
are in better
financial condition than others. The longer the level premium and coverage
period, the more important it is to consider how healthy and strong
the life
insurance company is.
Renewal
Period - Most level term life policies have the ability to renew
the policy beyond the initial level premium period. Two products may
offer identical
premiums for the initial level period and yet there may be an enormous difference
in renewal costs beyond the level period.
Conversion
Period - Many term life policies offer the ability to exchange
the term policy for a whole life policy without having to again medically
qualify. Should
your health change, and should you not be able to buy a new policy elsewhere,
you may find the conversion option important.
Comparing
Different Term Life Periods - Should you be buying a 10
year term product or a 20 year term or Term 100, a policy which covers
you
for life? How long
do you really need the insurance? If you buy a 10 year term, how will future
cost increases after the 10th year compare to a longer level term
plan such
as 20 year term? If you only need insurance for 10 years, you could be wasting
your money buying a 20 year term product. You should discuss why
you are
buying the insurance with a life insurance agent and let them give you the
benefit of their knowledge and experience. The agent may be able
to identify
other factors you have not yet considered.
Smoking
Considerations - Not all life companies define smoking the same way.
If you have never smoked or used tobacco products in any way, then a non-smoking
comparison will include products that you can qualify for based upon non-smoking.
If you were a smoker and later quit, then how long ago that you quit may
limit your choices. If you do smoke, some companies may offer products with
better premiums depending on how little you smoke, or whether you smoke cigars
or pipe rather than cigarettes. You will need to discuss all of this with
your agent.
Finding
the Best Term Life Policy
The cheapest policy isn't always the best policy. There are other differences
that you should consider before choosing the company and product that is
best for you. Many of those other differences are subjective. This means
that they cannot be compared by simply placing values side by side on a piece
of paper, as we can do with premiums.
Note:
Some companies use your actual age to calculate your premium, while others
use your nearest age.
Get
a Free Term Life Insurance Quote
Back
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Ivon T. Hughes, The Hughes Trustco Group Ltd.
Online Insurance Broker - Get a FREE Quote TODAY!
Tel: (514) 842-9001 Email: info@trustco.ca
Web: http://www.trustco.ca
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