Whole life insurance is permanent life insurance that builds cash value. The premium payments are level for life so you don’t have to worry about a rate increase as you get older. Your policy will last your entire lifetime as long as you continue to make your premium payments. When shopping for whole life insurance, it may seem a little daunting because there are dozens of carriers to choose from. You might be wondering where you can find the cheapest whole life insurance, but you want to also make sure that you choose a financially sound company. This is important because a portion of your premiums will be invested by the carrier and the returns that they make is what builds the cash value in your policy.
Here are some simple tips on how to find the cheapest whole life insurance rates as well as a financially strong company.
Work with an experienced agent. This is one of the most important parts of shopping for life insurance because the rates and underwriting requirements of life insurance carriers can vary greatly. The difference in premium from one carrier to the next can vary by as much as 30% to 40% for the same amount of insurance. There are so many places where you can find life insurance quotes so you want to make sure you choose a reputable company with a short and easy quote form.
Be upfront about your health and your needs. If you have high blood pressure or cholesterol or any other health issues, it is to your benefit to disclose it so your agent can steer you towards the carrier with the best rates for those conditions. By withholding information, you run the risk of being rated up or declined. This may not seem like a big deal and many people think they can just go apply to the next company, but a decline or a “rate up” will leave a permanent mark on your medical information bureau record and other insurance companies will be leary when they see it.
Choose a company with a solid financial rating and a good history of returns. With whole life insurance, the cash value that builds up in your policy is based on the returns made by the life insurance carrier. So it is important that you choose a company that is financially sound. Life insurance companies are given ratings based on their financial strength so be sure to ask your agent about the ratings for carriers that he or she recommends to you. Get a free quote today to compare multiple rates.
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