Pricing

The insurance provider agrees to pay the client’s beneficiaries a specified amount of money, known as the death benefit or face value of the policy, when the insured client dies. That money is paid to the beneficiaries tax free.

The price, or premium, required for this contract depends on several important factors.

• Number one is the type of insurance: Whole Life, Term Life, or Universal Life.
  
• Number two is the amount of death benefit.
  
• Number three is the age of the person to be insured.
  
• Number four is the health condition of the insured.
  
• Number five is the gender of the insured.

There is not usually a huge difference in pricing between providers, because the industry is regulated by a State Insurance Commissioner. Based on the five factors listed above, a general or ballpark premium can sometimes be estimated.

However, licensed financial professionals are required by law to act in their client’s best interests. Because life insurance is a specialized contract, most people are not familiar with the differences, advantages, disadvantages, language, and terminology connected to the different types of life insurance.

Therefore, it would be a dereliction of duty to provide even an estimated price or premium for a life insurance policy without first learning more about the prospective client’s needs, financial goals, and situation. It is also important to help the client understand the different types of life insurance and their respective benefits.

In other words, buying life insurance is not like buying a pair of socks.

Please call for a free, no-obligation consultation. Stan will be happy to help you receive an accurate quote for a policy that is best suited for your needs.