Thursday, March 27, 2014

What You Need to Know About Life Insurance Quotes

Every insurance company, before accepting an individual to insure must first assess whether he is insurable or not. After the assessment and the person passes the requirements or standards of the insurer, that person then could be issued a life insurance quote.

A life insurance quote provides the client with the premium rate that he must pay depending on the policy that he desires. It contains the rate class, the monthly premium, rate per day, and rate guarantee. Different insurance companies provide quotations online. It could also be requested by phone or directly from their offices.

The rate class is the category where the person belongs. An example is a category for a smoker and another category for a non-smoker. The monthly premium rate defines the amount that the individual must pay every month. The rate per day is equal to the monthly premium divided by thirty days, and the rate guarantee is the term or coverage period.

How to Get a Quotation

Before requesting for a quotation, you must determine what particular policy you would like to avail. Check your needs. Try to see whether you would require a long term or a short term policy, whether you want the basic term life insurance or the one with a savings component integrated in the policy. Also, think about the scope of coverage of the policy. Ascertain whether you would like it to extend to your children, to your liabilities, or even to your business. Lastly, make sure that the insurance company that you are most likely to consider is a highly reputable one. You do not want to end up chasing after insolvent companies in the future.

After coming up with answers in relation to the matters stated above, you could now start to look for companies where you could request for a life insurance quote. You could browse for different insurance companies on the internet, or if you have already chosen a certain insurer, you could visit their website for a quotation.

There are different ways that insurance companies give out a quotation on the internet. Some let you fill out general information pertaining to the state where you reside, gender, birthday, coverage amount, and the term period. After submitting these information, it would then ask you to fill out personal information and those that pertain to your health. These include biological information such as height and weight. Those involving personal health include whether you are a non-smoker or not, whether your family has a history of ailments such as cancer, stroke, diabetes, kidney or heart diseases and if a member had died from these illnesses, whether you or those in your family have been diagnosed of anxiety, depression or other similar psychological disorders. Some companies are more lenient and would just be asking for the general information and an email address, and would send the quotation directly to your email. Others integrate both general and personal information in a single page and give out the quotation after completely filling out the required fields.

In any case, once you receive a quotation, make sure that everything is stated without any ambiguity. The coverage period should be clear and the yearly or monthly premium must be certain. Determine first-hand whether the quotation you have received from a company is not overpriced. Do this by comparing premiums, coverage period, and benefits with quotations from other companies. Most importantly, verify the status of the insurance company and how reliable it is in paying up its dues to policyholders.

A life insurance quote is not a guarantee that insurance companies would insure you because they gave you one. They have to determine initially your insurability and your capacity to pay the premiums. Nevertheless, planning to obtain a life insurance policy is a good start for securing your future and your family.

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