"I'm buying term insurance. Why should it matter
what company I choose?"

Almost everyone seeking a temporary insurance solution buys a renewable and convertible term policy. Have you ever stopped to consider why? The answer is that if your health deteriorates and you become uninsurable then at least you'll have the guarantees to keep your current plan or convert it to a permanent policy.

 

Ask yourself these important questions about the company you are considering:

What permanent plans are available if I wish to convert later?

• Am I restricted to very expensive whole life or universal life plans?
• Are there multiple participating whole life plans to choose from?
• Will I be forced to renew my term plan at a substantial increase?

 

IMPORTANT: You may end up with the company you choose today for the rest of your life!

 

Why all the warnings?

 

The cost of permanent policies are mainly dependent on the company's investment, mortality, and expense experience. When there is an adverse effect on any of these factors, the prices of policies go up. If a company has a low rating track record and the trend continues, your permanent plan can prove to be very costly when the time comes to convert your term policy.

 

What about cash values?

 

A part of your premium dollars are invested in the company's general portfolio. Because you aren't personally managing that investment, your selection of an insurance company is vitally important. Should a company's performance yield poor results, it may negatively impact the cash value build up in your policy.

 

Next page >

 

What are ratings?

 

 

 

Click a link below to jump to another section of the article:

 

Why are ratings of extreme importance?

 

Should I be getting quotes from 10, 20 or more insurance companies?

 

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