Jul 19
Thinking about buying life insurance from your car insurance agent?
Life insurance isn’t one of those policies that you get a discount on from your auto/home insurer! In fact, most life policies offered through your property/casualty agent are typically overpriced relative to the competitive products offered by life insurance specialists. They get away with charging more because many people are drawn to the “convenience” of one source for all their “insurance”. This can be a costly mistake.
Take a look at the following example. Let’s say you’re age 42, in very good health, and are looking for $500,000 of 20-year level term insurance. If you went to State Farm, you would pay $680 per year, or $13,600 in total over the twenty-year term. If you worked with a multi-carrier broker, you would likely have found that the same exact coverage could have been purchased for only $460 per year or $9,200 in total over the twenty-year term. Savings: $220 per year, or $4,400 over the twenty years.
Bottom line: unless you want to overpay, before you sign on the dotted line for life insurance with your auto agent, shop around and you’ll find out that you can do better… a lot better.
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