Before you start hunting for the life insurance quote you need to fill out a worksheet of information that you can forward to your insurance broker like lifeinsurancedirectThe details that you should fill in the worksheet are:
- The annual expenses of your dependent – $
This should include mortgage payments, credit card payments, any other loans
- Dependent’s other sources of income – $
This would be the salary, social security, pension, interest, dividend etc.
- Additional income the dependent would need – $
Subtract point 2 from point 1
- Divide the additional income by the expected rate of interest to be earned – $
For instance if the current rate of interest is 8% divide the additional income by 0.08
- Face value of the required insurance policy – $
Provide the insurance broker or the website with the above information and you can get quotes for different types of insurance policies from different companies. Compare each of them for premium payable, coverage available, additional benefits provided etc. Remember that apart from the quote that you get there are other hidden costs like administration fees, commission that will be made available to you at the time of policy purchase. So check clearly with the agent for such additional costs and include them in your comparison calculation.
Another thing to remember and ask for is the additional savings feature that varies from company to company. Some of them are multiple insurance packages, organization memberships etc.
