When you’re purchasing something that’s got to last and that you’ll be paying on for over a number of years, price can be a big issue. It pays to check out options and compare costs. Buying life insurance from AAA Life Insurance Company falls into that category.
While you aren’t getting a product that you can drive, touch, or sit in, it can certainly be one of the most important purchases you’ll ever make for your family.
The good news is you may never pay “full price” for your coverage. Let’s say you decide to purchase $250,000 of level term coverage for 20 years; you’ll pay about $1551 a year for the next 20 years (we’re going to pretend we’re a healthy 30 year old male for the moment). If something happened to you in the first year, your family would receive the entire $250,000, just as they would if something happened to you 19 years down the road. Also, at no point would you ever get close to paying the “full price” of what your family would receive.
With that said, when you compare prices for policies across companies there are a few things to keep in mind. Not all 20 year term policies (to use an example) are the same. You’ll need to “pop the hood” and take a look underneath.
Strength: Do you know anything about the life insurance company that would issue the policy? For example, some policies include certain riders at no additional cost, while others charge for them. Take an Accelerated Death Benefit rider for instance. If you were to become terminally ill, it pays you a portion of your death benefit while you’re still alive. Does that come with your policy, or would that cost extra? How about the ability to convert your term policy if you find you need coverage longer than the term period you selected? Are you able to do that with the policy you’re looking at?
Service: Factor in things like the ability to contact customer service or talk to an agent if you have questions about your policy, premiums, or in the unfortunate event that your family needs to receive the death benefit. While customer service may seem like a small thing now, it can be critical in a crisis.
Exactly What You Want: Sometimes it pays to get exactly what you want when you want it. If you’d rather not go through a paramedical exam or you’d like immediate coverage, then paying a bit ore to get that can be the right thing to do.
Remember, price is about more than just a number that you fill in on the check you write for your premium. Be sure to “kick the tires” of the policy before you buy.
1Rates may vary and are subject to personal health history and underwriting guidelines. Not all applicants will qualify.
Life insurance underwritten by AAA Life Insurance Company, Livonia, MI. AAA Life (CA Certificate of Authority #07861) is licensed in all states except NY. Policy Form Series ICC11-1201/TL-1201 (In OR: ICC11-1201).
Smart financial planning today can leave your family with a debt of gratitude.
An often-heard refrain is, “Buy term and invest the difference.” Others say, “Why rent (term), when you can own (permanent)?”
You’ve taken an important step by deciding to go through the life insurance application process. Here’s what you need to know.