 |
|
1-888-632-5353
M-F 8 AM - 9 PM EST
|
|
is Searching for
Plans in ZIP Code
|
Sorry, that ZIP code
was not found.
Try Again
|
|
|
is Searching for
Dentist in ZIP Code
|
|
|
|
you are here: DentalPlans.com > Dental Health Articles > Money > Avoid Common Life Insurance Mistakes
| |
|
|
|
Updated: 9/3/2008 4:00:29 PM |
|
|
(ARA) - If you've been thinking about buying life insurance, now is the time to buy because life insurance companies are competing for the lowest life insurance rates. But buyer beware ... there are some common mistakes you should avoid.
"You wouldn't buy a house without first checking out comparable sales, the schools and neighborhood, or a car without first comparing it to others in the class or taking it for a test drive," says Byron Udell, founder and chief executive officer of AccuQuote, a leading provider of term life insurance quotes to people across the United States. "Like with any major purchase, it's important to know all the facts about life insurance so you can make wise decisions."
Udell says a good way to start is to learn from the common mistakes most people make when shopping for life insurance policies. According to Udell, here are some definite things to avoid when comparing life insurance quotes:
Don't let premiums define the decision.
Life insurance rates shouldn't be the only consideration when it comes to decision making. It's also important to factor in the financial strength/integrity of the life insurance company quoted, as well as important product features such as renewability privileges, conversion rights, available riders and how long the life insurance rates are guaranteed. AccuQuote deals with companies that are rated A or better by A.M. Best Co. Click here to see what kinds of rates the company can find for you.
Don't automatically buy term life.
Term life insurance is an appropriate type of insurance for many people. It is the most affordable life insurance policy. However, other types of life insurance policies, such as return of premium term life, universal life, or second-to-die policies may be a better choice in certain situations. Be sure to check with a licensed agent, like the ones at AccuQuote. You can receive a free life insurance analysis simply by calling (800) 541-5917.
Don't consider illustrations as fact.
If buying anything other than term life insurance, keep in mind that illustrations are only projections of what may or may not happen in the future. They are not guarantees (unless the column has the word "guaranteed" in it). The company's interest rates may decline and earnings may not be sufficient to cover the premium in the future, necessitating additional out-of-pocket payments.
Don't think that buying life insurance is a one-time activity.
Evaluating life insurance needs is an activity that must be conducted on an ongoing basis. A life insurance needs analysis should be conducted at least every 2 to 3 years because circumstances change (marriage, divorce or birth) and the amount of insurance may no longer be adequate.
Don't cancel a policy until a new one is in force.
Sometimes it is appropriate to switch life insurance companies, especially since term life insurance rates have dropped dramatically over the past 10 years. But before dropping an existing life insurance policy for a new policy, make sure the new one is in force.
According to LIMRA International, a worldwide research, consulting and professional development organization that helps more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness, 68 million adult Americans have no life insurance at all and those with coverage have far less than most experts recommend to ensure a secure financial future for their families. And according to a recent survey by the LIFE Foundation, a nonprofit founded in 1994 in response to the public's growing need for information and education on life, health, disability and long-term care insurance, 58 percent of people haven't purchased a policy because they think it is too expensive.
"The fact is term life insurance rates are at an all time low," says Udell. "The annual premium for a 40-year old male in good health buying a $500,000, 20-year level term life insurance policy would be $345 annually. Just 10 years ago at this time, rates were $515. Term life insurance rates for women are even lower."
ARA Content
|
|
|
|
|
|
|
|
The materials and articles published on DentalPlans.com are for informational purposes only. Although DentalPlans.com strives to be accurate and complete, the information is provided without liability for errors. DentalPlans.com does not warrant the accuracy or completeness of the information, text graphics, links, or other items contained on DentalPlans.com.
DentalPlans.com expressly disclaims liability for errors or omissions in these materials and DentalPlans.com makes no commitment to update the information on DentalPlans.com.
DentalPlans.com expressly disclaims all liability for the use or interpretation by others of information on DentalPlans.com. Decisions based on information contained on DentalPlans.com are the sole responsibility of the visitors, and visitors agree to hold DentalPlans.com and its Affiliates harmless against any claims for damages arising from decisions visitors make on such information.
Nothing on DentalPlans.com constitutes medical advice or other forms of advice. DentalPlans.com assumes no responsibility for material created or published by third parties linked to DentalPlans.com with or without DentalPlans.coms knowledge.
|
|
| |
|
Terms of Use | Privacy Policy | Site Map | Newsletter | Info to Go |
DP Goes Green |
Affiliate Program | Contact Us
|
The DENTALPLANS.COM website is administered by DENTALPLANS.COM, INC., a licensed Florida Discount Medical Plan Organization, 8100 S.W. 10th Street Suite #2000, Plantation, FL 33324. Plans and Programs offered by DentalPlans.com are not health insurance policies. Plans and Programs offered by DentalPlans.com provide discounts at certain health care providers for medical services. Plans and Programs offered by DentalPlans.com do not make payments directly to the providers of medical services. The Plan or Program member is obligated to pay for all health care services but will receive a discount from those health care providers who have contracted with the Plan, Program or discount plan organization.
© 1999-2009 DentalPlans.com, Inc. All Rights Reserved. Patents Pending. |
   |
|
| |
|  |
|