Insurance Machine

When you get quotes from a number of life insurance companies, you simply compare prices and choose the lowest one, right? But there's much more to it than that.

But not all term life insurance policies are equal. A term life insurance quote may be misleading. Is the term life insurance policy a
o Level Term,
o Annually Renewable Term, or
o Convertible?
Soon enough you realize this is like comparing apples to oranges. So by selecting the lowest price alone, the coverage may be inappropriate for your situation.

You must check the financial strength of the life insurance company. Insurance is simply a promise to pay. If the company is not financially strong enough, how will they keep their promise? How tragic would it be for the insured to outlive the insurance company.

Often companies with an inferior financial rating will offer lower premiums in order to attract new customers, since they cannot compete on financial strength. The easiest way to find out and insurance companies financial status is to check with the financial rating services: AM best, Moody's, and Standard & Poor's. These companies provide a letter grade, just like in school, with "A” the highest. For your own safety, never consider a term insurance quote from a company rated less than "A".