7 Smart Moves That Could Get You the Best Life Insurance Policy

7 Smart Moves That Could Get You the Best Life Insurance Policy

Daniel Hall 20/01/2023
7 Smart Moves That Could Get You the Best Life Insurance Policy

Life insurance is an important part of your financial plan.

It's one of those things that you hope never to have to use, but it's there if you need it. According to a Forbes Advisor survey, at least three in four American adults have some kind of life insurance.

Life insurance can help protect your family from the financial burden of losing their main source of income and can also pay off any debts they may have left behind after you're gone. 

But how do you find the right policy for yourself? Here are seven smart moves that'll get you started on finding the best life insurance policy:

1. Assess Your Coverage Needs

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Before you start looking for life insurance coverage, take the time to assess your needs. The reason, life insurance can be a complicated product. A good place to start is by thinking about how much coverage you need and what types of risks you need to protect against.

Financial experts, according to Investopedia, suggest that your life insurance coverage should be 10 to 15 times your annual income.

The two main types of policy coverage are term and permanent. Term policies are designed for specific periods and will expire after a set period (e.g., 20 years). Permanent policies don't have any expiration dates, but they're more expensive than term ones because they tend to offer more benefits or coverage options than their temporary counterparts do, but only if you keep paying premiums.

2. Get a Backdated Insurance Policy

What happens when an insurance policy is backdated? A backdated insurance policy can be beneficial in certain situations where an individual may have recently become eligible for coverage but would like the policy to be effective from an earlier date.

Some reasons why someone might want to backdate a policy include:

  • To ensure that coverage is in place for a specific event that occurred in the past, such as a health diagnosis or accident.

  • To take advantage of a lower premium rate that was available in the past.

  • To comply with a requirement for a specific type of coverage, such as a mortgage or loan.

  • To avoid a gap in coverage if an individual is switching from one policy to another.

It's important to note that insurance companies do not always allow backdating a policy and may consider it. It's important to be transparent with your insurance provider and only do it with the company's approval.

3. Buy Early, Buy Often

Life insurance is a product that you pay for but don't use until you need it. It's essentially an investment, and like any other investment, it can be very lucrative if done right.

If you're thinking about getting life insurance, it's best to get one as soon as possible and keep renewing it, even if your health is perfect. The longer your policy is active, the lower your premiums will be and the higher your payout will be when the time comes for you to claim.

4. Consider Your Budget

The next step is to consider your budget. How much can you afford to spend on life insurance? According to Insider, the average cost of a life insurance policy is USD 40 to USD 50 per month. But the cost varies by the type of insurance, personal factors, and coverage amount.

It’s important to look at your other financial commitments and priorities, as well. If you have a mortgage or student loan, it might be difficult to afford the cost of a large life insurance policy right now.

This doesn’t mean you can’t get an excellent life insurance policy. It just means that you must take steps before making any decisions about buying coverage. 

5. Compare Quotes from Multiple Sources

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Once you've made a list of companies that provide life insurance, it's time to start comparing quotes. You should compare quotes from different companies, as well as agents within each company. You'll also want to compare quotes from different channels. For example, online or by phone.

Finally, be sure to consider the types of plans available for your specific situation and needs: term or permanent, whole life or universal. Is there an accidental death rider?

If all else fails and you still can't get a clear picture of how much coverage will cost in your current situation or what type of coverage is best, shop around again once you've moved on with your life's circumstances.

6. Look for Discounts

Discounts are not always advertised, so don't assume you can't get one. If you're shopping around, ask if there's a discount available on the policy or quote you're looking at. You may be pleasantly surprised with what your agent can do to get your premiums down even further.

7. Read the Fine Print

Read the fine print to understand how your policy works. This is the most important part of getting a good life insurance policy. You need to know what is covered and what isn't, when you can claim, and how much you can claim.

Understanding these things will help you make an informed decision about your life insurance needs. It's always best to go through this process with someone who has experience in dealing with such policies so that they can guide you through it.


As you can see, there are many things to consider when buying life insurance. We hope that this article has given you some helpful tips on how to get the most out of your policy and make it work for you and your family.

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Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.


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