Finding Good Value in Life Insurance

Life insurance can be an important part of your financial plans. After you have decided which kind of life insurance is best for you, it's always good to compare similar policies from different companies to find out which one is likely to give you the best value for your money. A simple comparison of the premiums is not enough. There are other things you should consider such as:

• Do benefits or premiums vary from year to year? 
• How much do the benefits build up in the policy? 
• What part of the benefits or premiums is not guaranteed? 
• What is the effect of interest on money paid and received at different times on the policy?
  

 
Once you have decided which type of policy to buy, you can use a cost comparison index to help you compare similar policies. Life insurance agents, like Summerlin Benefits Consulting (SBC), can give you information about different kinds of indexes that each work a little differently.

One index may help you compare the costs between two policies if you give up the policy and take out the cash value. Another may help compare your costs if you don’t give up your policy before its coverage ends. Some options could help you decide what future income needs could be met. Each index is useful in some ways, but many can provide tax- free growth. It’s all about what you need specifically for your individual situation.

Remember that not one company offers the lowest cost at ALL ages for ALL kinds and amounts of insurance. Other factors you should also consider:

• How quickly does the cash value grow? Some policies have low cash values in the early years that build quickly later on. Other policies have a more level cash value build-up. A year-by-year display of values and benefits can be very helpful. ​
• Are there special policy features that particularly suit your needs? Some may even offer benefits for long term care financial planning. 
• How are non guaranteed values calculated? For example, interest rates are important in determining policy returns. In some companies increases reflect the average interest earnings on all of that company’s policies regardless of when it was issued. In others, the return for policies issued in a recent year, or a group of years, reflects the interest earnings on that group of policies; and amounts paid are likely to change more rapidly when interest rates change.

Selecting the insurance policy that is right for you may seem like a daunting task, but Summerlin Benefits Consulting helps people with this every single day. It’s what we do! We take the guesswork out of things and present options in a simple, easy to understand manner. Call us today and we can help you too!