Would you believe the average person buys around nine cars during a lifetime? Buying a car is not something most people do every year. When you do, it signals the perfect time to review your car and home insurance policies and consider what debts you may be passing along to your loved ones. Most likely, your debts amount to more than you are happy with. That is not a reason to despair. A life insurance policy is the key to protecting your assets and covering your debts, so they don’t get passed along to the people you love.
To help you prepare for your next car-buying experience, we are outlining how to compare insurance policies, what information you need for a quote, and how to get the best value. As a bonus, we will also highlight the often-overlooked connection between car insurance and life insurance.
How Can I Compare Life Insurance Policies?
Life insurance policies are complicated for the average person to understand. Regardless of whether you are in the market for whole life or term life insurance, you want to be sure you are getting a quality insurance provider and a policy that offers good rates.
We will help simplify the process by giving you a list of ways to compare life insurance policies:
- Check Out the Insurance Provider’s Reputation: M. Best is the company that rates life insurance companies in Canada. It is also helpful to check out online customer reviews.
- Ask Upfront If You Will Be Required To Take A Medical Exam: If you are overweight or have any health concerns, your policy could be denied or rated higher. Discuss these issues with an insurance agent to learn more about how it could impact your rate or chances for approval and which policy will serve your needs best.
- Get Quotes With Various Limits: Often, it does not cost very much more to raise your limits to the next level.
- Be Sure You Understand The Pros And Cons of Term Insurance And Whole Life. Term life is more affordable than whole life, so it might be your best option if your budget is tight. Whole life insurance policies offer greater flexibility as you can borrow against them and leverage cash value.
- Check the Availability of Customer Service and Claims Services: You might prefer a life insurance provider that is available around the clock or one that has multiple communication channels.
- Compare Pricing: There are lots of life insurance products available, and you will want to be sure you are getting the best rate you can.
What Information Do I Need To Compare Life Insurance Quotes?
Life insurance agents need to collect several pieces of information from you before they can give you an accurate quote on a term or whole life insurance policy. You will need to set aside some time to speak with a life insurance agent who can help you understand your financial needs and your family’s situation better. It is best to gather up all the information ahead of time before speaking with an insurance agent to streamline the process.
A life insurance agent will need to know your contact information including name, address, phone number, and email address. They will also ask you about the following issues:
- Age
- Height
- Weight
- Occupation
- Tobacco use
- Risky hobbies
- Income level
- Medical history
Be sure to be honest on your life insurance application. Insurance companies do their due diligence in verifying the information you provide.
Note that you will need to list one or more beneficiaries on your life insurance application. You may need their names, dates of birth, and phone numbers for your application.
What Happens After You Submit Your Life Insurance Application?
Once you have submitted your application, the underwriters will verify your information. Do not be surprised if they come back with a few more questions to get clarification on the risk.
Life insurance policies are not just approved or denied. If the underwriters feel there is an increased risk of some kind, they may increase the rate slightly to compensate for it. In any case, your insurance agent will notify you of any changes in the quote and explain the reasons for them.
The medical exam will be your next step if your policy requires one. Your insurance agent will explain what is involved with it and where and when it will take place. Medical exams are not painful, and they do not require much of your time.
Once you accept the policy along with any changes, the company will issue your life insurance policy and give you an official copy.
What Is the Connection Between Car Insurance and Life Insurance?
Except for buying a home, a car is one of the most expensive purchases you make. If you do not own a home or expect to buy one, your car is likely one of your biggest assets. While cars have value, you may need to take out a loan on your car for several years.
If you should pass away while the loan is active, that debt will pass down to your heirs. A life insurance policy will cover your car loan debt, credit card debt, and help pay for your final expenses, so your loved ones do not have to.
As you review your car insurance after getting your new car, it is wise to review all your other insurance policies and consider getting life insurance if you do not already have a policy or do not have enough life insurance.
If you do have a life insurance policy, review the limits to make sure they are high enough to cover your debts in the interest of financially protecting your loved ones.
Final Words
Life changes, and as it does, our circumstances change with it. It is a good habit to get into reviewing all insurance policies at least once a year to be sure you have adequate coverage, and you are getting good rates. Put your life insurance review at the top of your list!
To get quotes on life insurance, contact us at Hometown Life Insurance at 289-606-0103 today!
External Links
- https://www.wheels.ca/guides/top-6-things-consider-comparing-car-insurance-quotes-canada/
- https://driving.ca/features/insurance/12-auto-insurance-discounts-you-should-know-about
- https://yd.com/
- http://search.ambest.com/texis/search/main.xml?pr=BINA&query=&order=dd&infq=displayurl!=%20&infq=src(10)&infq=sd:44434..44464
- https://www.nerdwallet.com/insurance/compare-car-insurance-rates
- https://www.cnbc.com/id/49504504
https://www.icbc.com/Pages/default.aspx
