How to Choose the Best Life Insurance Plan Today

iQuanti: With so many life insurance companies and policy options available, finding the best life insurance plan can be overwhelming at times, especially if you don't know where to start. When you understand how to get a life insurance plan that works for you, you'll be able to compare life insurance quotes and come to a decision much more easily. Let's dive deeper into how you can choose the best life insurance plan for your needs. 

Decide how much coverage you need

One of the first things you should do when choosing a life insurance plan is decide how much coverage you need by reviewing your finances. This will help you narrow down the list of options at your disposal. 

Life insurance is meant to provide financial protection for your loved ones and cover finances when you die, including your household bills, mortgage, college tuition, and any debt you may leave behind. Make sure you purchase enough life insurance to cover these expenses so your beneficiaries are not burdened with the costs. According to many life insurance experts, a reasonable amount of life insurance is usually around seven to ten times your salary. You can also multiply your annual salary by however many years you have left until you retire. 

Compare life insurance companies

It's wise to compare life insurance companies and quotes instead of getting a policy with the first company you come across. The goal is to get the right deal for your lifestyle and finances. When comparing life insurance companies, you should look for the following:

• Reasonable rates: The amount of your premiums can vary depending on the policy and the company. Select an insurance company that offers the best premiums for your budget. 
• High customer satisfaction: Customer satisfaction will help you measure how well a company meets its customers' expectations and make your decision easier.
• Financial stability: Your life insurance policy is a long-term arrangement so you'll want to make sure your life insurance company is financially stable for years to come. This will help l ensure your loved ones are financially secure when you're gone.
• A range of products and services: Choose a company that offers a range of products and services to meet your and your family's needs. Your life insurance needs may change over time, so you'll want to find a company that can grow with you.

Choose a life insurance plan

You should find a life insurance plan with coverage and features that best suit you and your loved ones. Here are two common life insurance policies that you can choose from:

Term life insurance

Term life insurance is an affordable and straightforward plan that often ranges from 10 to 30 years, and will provide your beneficiaries with a death benefit if you pass away while the policy is in force. To choose the right term length, you can consider the debt you have, like your mortgage. If you have 10 years left on your mortgage, for instance, you may want to purchase a 10-year term life policy. 

Once your term is over, the coverage ends. You may have the option to renew your policy, but if there have been any changes in age, health, or life expectancy, your rate may increase. Term life insurance can be an ideal option if you're on a budget and only need coverage for a limited time. 

Whole life insurance

Whole life insurance is a permanent policy that offers protection throughout your lifetime as long as you continue to pay the premiums. Whole life insurance costs more than term life policies, but your premiums are set at a fixed rate, so they'll stay the same throughout the duration of your policy.

One key benefit of whole life insurance is that part of your premium goes toward the cash value growth component, which grows at a guaranteed rate. Once you've built up enough cash value, you may be able to withdraw money from it, borrow from it, or surrender the policy and receive the cash value minus surrender charges. Whole life insurance can be a good choice if you'd like lifelong coverage and want to use it as an estate planning tool that offers more than just the death benefit. 

The bottom line

Selecting the best life insurance plan starts with your specific needs first. Once you find out how much coverage you need, research life insurance companies, and compare the different types of plans available, you'll be on track to providing your beneficiaries with financial security. And if you need additional help, consider consulting with a licensed insurance agent to figure out which life insurance plan is right for you.