When you are looking at purchasing life insurance you should look for various items with the different carriers. You should look at their proposed rates, financial ratings, conversion options, and specific underwriting guidelines.
The proposed rates are important as that is the amount that you will pay if you qualify for that rate. It is important to understand that a quote is just a guestimated rate. You could come back with a better rating and a better rate or a worse rating. Make sure you understand the underwriting rating that has been assigned to you for the quote. For example, did you get quoted preferred even though you have diabetes.
The financial ratings and strength of the company that will underwrite your business is important. You want to make sure they have good strength and will be able to pay the claims. It is great to get the best premium rate, but if they won’t be able to pay the death benefit, who cares.
Do the insurance companies that you are looking at have good conversion options. When I say conversion options, I mean good permanent insurance options. Conversion allows you to convert from term to either whole life or universal life with no proof of insurability. This can be a very valuable option and make sure to consider this.
The last thing to consider when you are looking at multiple carriers is how each company underwrites for different underwriting issues. For example, is there a carrier that underwrites better for smokers or high blood pressure