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How to compare life insurance quotes

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If you're looking for valuable life insurance for a reasonable cost it helps to know how to compare price quotes. Getty Images

Life insurance offers policyholders unique financial protection in the event of their death. Depending on the policy type they choose, they can also potentially access a cash reserve to use while they're alive. While the benefits of life insurance are substantial and numerous, the process of buying a policy may not always be so clear. 

All applicants start in the same place: by getting a quote. A quote is essentially an estimate of the cost of the policy you're applying for. With that being said, not all quotes are created equal. Depending on a variety of factors you may see significant differences among providers. Accordingly, it helps to know how to compare life insurance quotes in order to obtain the best plan for you and your beneficiaries.

You can start by getting a free price quote from Haven Life so you know exactly what to expect.

How to compare life insurance quotes

Here are three effective ways to compare life insurance quotes:

Understand your needs

Before applying for life insurance you'll first need to understand why you need a policy. This will help determine how much life insurance you need to apply for. While recommendations vary based on factors like age, sex and health, it's generally recommended that you have protection in the amount of 10 times your annual salary. Obviously, if you're retired and/or no longer working that may not be applicable. 

But know what you need life insurance for before applying. Do you want to protect your spouse? Your young children? Do you need a policy that can pay off your mortgage in your absence? By accurately understanding what you need life insurance for you can better apply for a policy and more easily compare quotes from providers.

Get a free price estimate here now.

Know your budget

What you can afford is equally as important as what you need for a life insurance policy. If you need a policy for $1 million, for example, but can only afford a policy for around half of that then the economics will dictate how much you apply for. 

Complete an accurate assessment of your financial situation. Be realistic about what you can afford. By being prepared with an approximate figure you'll better be able to sort through the life insurance quotes you ultimately receive. Essentially, you're trying to eliminate time spent by obtaining quotes and prices for policies you could never afford to begin with. Know your budget first and proceed from there. 

Shop around for providers

As is the norm with most financial products and services, it pays to shop around. Life insurance is no different. By obtaining quotes from at least three different companies you can better determine which one is right for you. You'll also be better informed about what the policy you need will cost, even if that figure is just an average of the quotes you receive.

Just remember to be consistent when obtaining quotes. For example, if you want a quote for a $1 million term life insurance policy for 10 years for a 40-year-old male, then make sure you get quotes in the same amount, type, length, and personal characteristics from the second and third providers, too. This will ensure that you're doing an apples-to-apples comparison. 

It's easy to get quotes from different providers. Use the table below to get started.

The bottom line

Life insurance is arguably the most important financial protection to have. Because of this, you'll want to make sure you've done your homework before purchasing a policy. So, as you proceed with obtaining life insurance quotes, make sure you fully understand both your needs and your budget. And don't take the first offer you receive - shop around until you find a quote that makes sense for you and your wallet.

You can start by getting a free price quote online now

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