Choosing A Life Insurance Policy? | Insurance Commercial Vehicle ...

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Option 4 definitely doesn’t sound right. Why would they give you more coverage for a longer period of time for the same price. I ran some numbers myself and it your numbers look close but don’t tell me a lot. Option 1 looks high for a top rated insurance company while Option 3 looks low for a top rated term insurance company. So I would probably lean towards find a new insurance agent. She is young. Focus on the financial strength of the company as mentioned. Then look at convertibility and waiver of premium. You want a policy that is convertible into a very competitive permanent policy. You also need to look closely at the waiver of premium. Make sure that it will pay for the policy and if your wife were to become permanently disabled it will convert to a permanent policy and continue to pay for itself. I suggest reviewing the AM Best ratings of each company. This will give you an indication of the companies current financial health (as of the last review) and it’s outlook for the future. Please keep in mind that if the company hasn’t been reviewed since October of last year, the impact of the financial meltdown may not be reflected in the rating yet.

First it is important to decide what the insurance is for, are you covering certain debts, leaving money for your spouse and or children. What is your retirement strategy? If just for debts, then purchase a specified term, if it is for long term coverage, ie to protect family then you may want to consider a policy building equity. You must be careful selecting a cash value policy, some are just for death benefit with high internal charges, and some are designed specifically for cash accumulation. Most carriers that may not be as well known are subsidiaries of very large companies, ex West Coast Life is part of Protective Insurance which is owned by JP Morgan Chase. These “smaller carriers” have more competitive insurance rates and have specialty niche products...

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