Remember these four keys:
- The premium for the first year does not necessarily reflect the total cost of the insurance: Many companies discount the initial premiums in order to get your business, but the total cost over a long period is higher than from other companies. If you plan to remain insured for 20 or 30 years, be sure to include the projected premiums for the next three or four terms (terms, not years).
- If the company offers dividends, find out the history of the dividends so that you can reasonably rely on the projections.
- Compare the same categories of risk: If one company quotes you a preferred rate while another company quotes you the standard rate, you’re not necessarily comparing the rates. On the other hand, if the companies will actually differ in the category of risk, using the quote they will actually offer is essential.
- Compare the term insurance costs with the cash-value insurance costs: If you think you may want to buy a cash-value policy in the future, you may get a better rate when converting with the same insurance company than buying a new policy.
No comments:
Post a Comment