How to Compare Life Insurance

Buying a life insurance policy can be tricky, especially if you are not aware of the coverage clauses and the exact amount of the payout. Understanding different types of coverage will help you compare life insurance policies. Begin by researching information about various policies available, types of coverage and the premium rates.

Instructions

Difficulty: Moderately Challenging

1. Go online and visit the most popular Web sites offering information and articles on life insurance policies. If you are not aware of such sites you can surf using popular search engines such as Google or Yahoo.
2. Determine the basic aspects of each type of policy. There are primarily four types of life insurance policies: whole life insurance, variable life insurance, universal life insurance and universal variable life insurance.
3. Research information about whole and variable life insurance policies. Make a list of what they cover and what they don't. For instance, whole life Insurance covers your dependents and builds your cash value reserve.
4. Learn about universal life and universal variable life insurance policies. For instance, universal variable insurance allows control over the cash value but the premium is usually higher as it covers the risk as well as your investment.
5. Compare the policies by requesting multiple quotes. Check the limits and coverage offered by each company.
6. Go online and use comparison tools offered by many Web sites. You can choose the policy type and the premium you are willing to pay and the tool will give multiple comparison tables on insurance companies.
7. When comparing the policy and coverage, emphasize on the time you are willing to spend on your insurance investment. Policies which provide investment flexibility require that you devote a specific amount of time per week.

Tips & Warnings

• The online comparison tool only gives you the summary. Always get detailed quotes via mail or over the phone before doing the comparison.
• Take detailed notes on what each policy offers and what it doesn’t. Comparing quotes alone is usually not enough.
• Get legal advice while comparing each type of coverage. An experienced and reputable agent can also provide some good recommendations.