If you're over the age of 50 when looking for the best insurance policy, don't neglect an important process: comparison shopping.
Despite age or type insurance, comparison shopping is important to ensure the best policy for your needs for the lowest cost.
Even during these economic times, life insurance premiums continue to go down reflecting declining mortality rates.
Since 2002, policy premiums decline an average of 4% annually.
Also, in response to the financial hardships many of us face, life insurance carriers continue to provide new products at lower costs.
There are a number of reasons why many have found themselves without insurance coverage.
For example, the loss of a job is a primary reason (employer provided the insurance); letting one's Term life insurance lapse (children are grown); or unable to continue the premium payments (Whole Life or Universal Life policies).
Given the current economic climate, does it really make sense to still remain uninsured, or under-insured? If you have been putting off the decision because you feel that it's not cost effective at your age, you might want to comparison shop first to confirm this.
This is especially important if you are still in good health, to lock in a policy now before you become uninsurable.
Here are additional reasons for considering life insurance: oTo help cover existing debt (car loan, mortgage, credit cards, personal loans, etc.
) oTo help establish a retirement fund (while you have 10-20 years left) oTo pay for burial and other incidental expenses due to death oTo provide funds for the family (spouse, grandchildren, children) To properly prepare for comparison shopping, you should answer the following: oWhat can you afford? A good guideline is 5% of earnings.
oHow much insurance do you need? oWhat type of insurance you should be considering? Term vs.
Whole Life or Universal To cover funds for the family, debt, or expenses, Term life insurance is a likely choice, because you'll receive the most insurance for the dollar.
To start a retirement fund, a clear choice would be Whole Life or Universal Life policies.
Next, as you begin your search it would be prudent to look at broker websites.
These are websites in which multiple carriers are represented by one broker.
There are two benefits of broker sites: First, you're more likely to compare similar policies (apples-to-apples) because the broker will make the selections.
And second, you will be given excellent support in locating the proper policies for your situation.
Remember, there are thousands of insurance carriers with tens of thousands of insurance plans to consider.
This is a difficult task to confront alone; it's far better to have the help of a professional.
So, even for baby boomers in their 50s, it would be wise to reconsider life insurance while you're still insurable.