Comparing Rates and Companies

This section gives you steps you can use to help you get to the bottom line. Comparing the prices of term insurance versus cash-value policies is virtually impossible.
When you’re ready to start shopping for life insurance, do the following:

• Decide which kind of insurance: The first thing you must do is decide which kind of policy you want (if you could afford it): term, whole life, universal life, or variable life. You must also decide which riders, if any, you want. Review the information in the previous chapters, which explain the details of each kind of policy and rider and goes over the pluses and minuses of each.
• Look for insurance companies: Seek out at least five or six companies and/or agents who sell the kind of policy you want. Eliminate any companies that you have doubts about. If you speak with any independent agents, remember to find out which company would be underwriting your insurance.
• Ask for quotes from each of those remaining companies or agents: Be certain that each quote represents the same amount of death benefit with all the same riders/ options you want. If possible, ask the agent or company to break down the charges so you can more easily compare the policies — which is particularly important when you evaluate cash-value policies. If you’re unsure as to which kind of policy to buy, get quotes for all the kinds of policies. Only then can you accurately decide which one is best for you.