Life Insurance Quotes 101

By December 22, 2016Insurance

Life Insurance Quotes 101 – What You Should Know Before Shopping for Quotes Online

Shopping online for life insurance quotes is becoming increasingly popular in the United States. No longer do we have to spend hours on the telephone – much to our employer’s disgust – divulging our personal details, only to find that the quotes from the life insurance companies are too expensive or don’t match our needs. Neither should we concern ourselves with taking time off work to make appointments with life insurance agents, subjecting ourselves to hours of sales talk. Of course, these options are still available to consumers should they prefer them, but many are now voting with their mouse and turning to online sources for life insurance quotes.

Tracking down the best quotes for life insurance

Obtaining life insurance quotes online is quick and easy. We can start our search for life insurance at our convenience any time of the day or night. If we want to find life insurance quotes at 3AM, then we can! Searching online for quotes also presents us many options. Almost all the familiar names in the life insurance market have web sites on which their life insurance products are offered, and there are many less familiar names too. However, when you go to a life insurance broker like us, you can shop them all at one time, instead of going to each individual company for a quote.

For the consumer, this is great news, as there are more life insurance companies offering their life insurance products on the Internet. Therefore, the more competition there is and so the better the price will be. When hunting down life insurance, or any type of insurance, it is always best to get a ran

ge of quotes as premiums can vary quite dramatically – sometimes by 300% or more! The Internet provides consumers with an efficient tool to do just this, plus they get to read about the benefits of each life insurance plan in the comfort of their own home first.

The quotes process

Most life insurance companies will have links to online quotes request forms. Consumers looking for life insurance quotes will be required to complete the form and submit it online to receive quotes. The online forms are generally uncomplicated, often taking only 5-10 minutes to complete. On our site, you can do this in less than a minute.

Once the form is complete, it can often be submitted online to the life insurance company. Some insurance companies will come straight back to you with an instant quote, others will revert back with a quote within 24-72 hours, either by e-mail or by telephone. Many companies also back their insurance quotes up with an official quotation by post. Our quotes are instant, you will only get a phone call if you decide to apply. We have to call you to finish up the application process, but we can often do this in a matter of minutes.

To gain your business many independent life insurance brokers and many insurance companies now offer free life insurance quotes on the web. Many allow you to compare their rates with those of their competitors. But comparing rates is not always the answer. It’s important to research the company’s premiums as well as their ratings.

An insurance company’s financial strength is important in that you will have comfort and confidence knowing that they will be able to pay your claims or your life insurance benefits. Additionally, insurance company ratings are administered by independent companies. These ratings give you a general idea on the aspects of a company’s financial strength.


Ratings for Life Insurance Companies

  • Best’s A+ Superior – This is the highest grade an insurance company can achieve. Companies with a Best’s A+ have a superior proven ability to meet their financial obligations with their policy holders.
  • Best’s A Excellent – Companies in this classification also have an excellent financial performance. Not as strong as an A+ company but still more than capable of meeting their financial obligations.
  • Best’s B+ Very Good – Again going down the list…. these companies have shown a “Very Good” ability to meet their financial obligations to their policy holders.
  • Best’s B Good -Insurance companies with a B show a good ability to meet their obligations, but not as strong at the previous grades.
  • Best’s C+ Fairly Good
  • Best’s C Fair – and finally a C means the insurance company has achieved a fair ability to meet their financial obligations.

There are of course other rating services besides Bests. Standard + Poors, and another company, Moodys are also well regarded as life insurance rating companies

How To Get The Best Life Insurance Coverage For You

Overall you should find a company that is minimally rated A and preferably an A+ or more. Remember this is your money you are spending and that the benefits may not appear for many years. These are two good reasons to make sure you have the right company for your life insurance.

Before you invest your hard-earned money in a life insurance policy, shop around and compare just as you would with any other investment. The best way to go about this is to obtain life insurance quotes from reputable companies. And in order to get an unbiased life insurance quote, search for a independent life insurance broker who can get quotes from all the life insurance companies.

What Factors Lead To A Good Quote:

There are some considerations to factor in when shopping for a policy:

How much life insurance do you need? This depends on your age, whether you have children, how much you earn, how much you spouse earns, and how much money you have saved, which should all be discussed with your broker. Another consideration is your financial obligations, i.e. home mortgage, college education costs, dependent family members.

Who should be covered?

The untimely death of a spouse can create a substantial financial hardship on you and your family. Spousal income loss should be considered. A small life insurance policy may be advisable for your children to cover the funeral costs. Your children will need life insurance in the future and, their health condition or ability to pay the premium for amounts needed, may make buying life insurance on children a wise long term financial option.

How should you pay?

Mostly the amount of the premium can be paid from current income, while other times it may be advisable to use other assets to acquire enough insurance protection if it is a large amount.

Where Do I Get This Life Insurance?

Above all make sure you are dealing with a reputable company, because at the end your beneficiaries will thank you for your investment in life insurance and for leaving a legacy that they can benefit from.

When a budget is tight it is easy to dismiss the need for life insurance. Lack of knowledge can also make an individual put off purchasing a life insurance policy. And, of course, planning for one’s own death and discussing it with loved ones is always difficult. However, the lack of life insurance can leave those you care about with burdens after your death.

Why is it necessary?

In the period immediately following a death it is much easier to arrange for a funeral if a life insurance policy is in place. The average cost of a funeral is more than $7,500.

Also, within a marital partnership, the death of the spouse does not relieve debt. Your partner will be liable for any payments that need to be made. Standard housekeeping expenses will need to be met as well. The ability for your loved ones to continue living in the same manner as they did prior to your death will also be important to you. Funding the education of any children will certainly be important.

What amount should be bought?

To calculate the amount of life insurance you need you must consider immediate and short term needs as well as long term requirements. Burial costs and existing debt would fall into the current needs category. Mortgage payments and child care would also fall into this group. College expenses would be an example of future expenses to be considered. Don’t forget taxes that may be due. There are many calculators available on the net which can help you to estimate the amount of life insurance you may need.

If you need help

In a matter as important as life insurance, it is always good advice to get many quotes and compare them. Quotes are free and are the best way to compare plans, pricing and options. After receiving some quotes it may be prudent to consult a life insurance professional or even an attorney. Many times life insurance proceeds can be protected from taxation.

The best way to learn and save money on insurance is to collect as many quotes as possible to compare services and rates.

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    Jake Lynn is the owner of He’s an independent agent who has helped thousands of people purchase life & health insurance online and over the phone

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