5 Tips for Choosing the Right Life Insurance Plan If You're Under 50

Published August 4, 2023

One of the biggest problems that young parents face when thinking about life insurance is being overwhelmed with the options. Traditional insurance is known for being complicated, and that has often been a barrier to people purchasing a plan. That’s why we’ve tried to simplify the process by making this list of 5 tips for choosing the right life insurance plan for you. 

In this blog post, we’ll go over 5 different steps you should take to find the plan that’s most suited for your needs. As long as you’re under 75,you can be a candidate for life insurance. Without further ado, here are five top tips to help you choose the perfect life insurance plan for you. 

So let’s get started! 

Woman excited to learn about life insurance

1. Understand Your Situation

When getting something like life insurance, the most important thing is to first know exactly what it is you’re looking for.

The best place to start is to think about what you truly need out of a life insurance plan. Are you trying to keep your family safe until your children are financially independent? Do you need to protect your large assets, such as a house? Or maybe you just want to make sure your end-of-life expenses won’t unnecessarily burden your family? Are you just looking for a simple death benefit or do you want more out of your policy, such as critical illness coverage and/or other living benefits?

Each person has different answers to these questions. What’s important is that you answer them so you know where you stand.

Once you’ve answered these questions, you can start looking into plans and providers and see which ones align with your needs and goals the best.

2. Research Life Insurance Providers

While many providers sell similar types of policies, where they differ is in the details. It’s extremely important to do your research when shopping around and compare various providers on what they’re offering.

Some insurance companies will be much stricter with eligibility but offer lower rates to those who can qualify. If you’re young and healthy, these might be the best option for you! Others have more accessible policies with lower  eligibility requirements but offer smaller benefits. These companies are great for those who are older or have pre-existing health conditions.(Larger providers such as ISI often have a wide range of products which offer the best of both worlds.)

Don’t forget user reviews! You can’t just stick to reading the policy descriptions that companies are offering. When you buy life insurance, you’re partnering with a company for an extended period of time. So you want to make sure you’re working with the right people. Check your providers’ websites and Google business listing and see what reviews people have left. Higher user reviews are generally a good sign for insurance companies.

Peaceful couple feeling relieved that they have the right life insurance plan

3. Compare Different Policy Types & Pricepoints

There are a variety of life insurance plans out there, because providers are trying to cater to the broadest set of needs and goals for people out there. This can make things complicated to navigate, but if you know your way around the basics, you can narrow down your options pretty fast.

The most important thing to know is the difference between Term life policies and Permanent life policies. Let’s start there.

Term life insurance is a coverage that lasts for a determined period known as a “term”. If you die during your term, your beneficiaries will receive your death benefit. Once the term ends, however, your coverage ends and you’ll need to renew your plan, get a new plan, or you can choose to go uninsured. The biggest advantage of term life insurance is that it is very affordable. But on the flip side, you risk not receiving your death benefit if you outlive your policy’s term.

Permanent life insurance, on the other hand, is lifelong protection. Many permanent life insurance policies also come with more bells and whistles than term insurance, such as investment components. Getting a permanent life plan is a bigger commitment than term life plans. As long as you’re able to pay your premiums, your protection stays. This extra level of security comes with a bigger price tag.

The good news for you is that premiums are partially calculated based on the level of risk you present as a client. Younger people with a healthy lifestyle are usually considered low risk for providers. So if you’re thinking about getting a permanent policy, the price is lowest when you’re young!

4. Ask About Extra Features on Your Policy!

For a lot of people, life insurance is just a cash benefit that you contribute to regularly by paying premiums. And that’s it. But life insurance can be so much more than that! Depending on the plan you choose, you have a wide variety of features that you can choose from to personalize your policy.

To give an example, let’s look at two of our most popular add-ons at Insurance Supermarket: Accidental Death & Dismemberment, and Critical Illness. These are extra protections that can be added to your life insurance policy for extra coverage, also known as a rider.

Accidental Death & Dismemberment (AD&D) grants you or your beneficiaries a benefit if you suffer an accidental death or a serious injury. People who live or work in more dangerous circumstances usually find it beneficial to get AD&D. It gives that extra peace of mind they need!

Critical Illness is a rider that covers specific costs associated with a select number of illnesses, like cancer or heart disease. It’ll help cover the heavy medical and caretaking costs that typically come with these serious illnesses.

The best news about these two is that if you’re interested in them, you could even get them as their own plan. But remember that it’s always cheaper to get them as a rider on top of your term of permanent life plan rather than having two separate plans.

Whether it’s your provider or a financial advisor you’re working with, make sure to ask about extra features like riders that might be available to you.

5. Get Expert Advice & Support

When it comes to making the right choice for you and your family, it’s good to get expert advice and support. While it’s good to understand the basics of life insurance before you start evaluating plans, don’t worry, you absolutely don’t need to know ALL the ins an outs. That’s why at ISI, we offer dedicated customer service and qualified insurance advisors that are available to assist with any questions or concerns you may have.

We’ll walk you through the entire process while providing insights and assistance, explain the different types of policies available, and help you decide on the one that best suits you. Reaching out to an advisor can provide you with much needed reassurance and confidence in making the best decision for you and your family.

Young couple happy they purchased life insurance

Conclusion

Finding the right life insurance can be a daunting process for busy young parents. With the right research and advice, you can find a plan that works for you and your family, and, most importantly, provide lasting financial security.

By following the 5 tips for choosing the right life insurance we outlined in this article, you can be much more confident that you’ll make the right choice for you and your family.

Take Control of Your Life Insurance Needs Now!

Don't let the process of finding life insurance overwhelm you! Insurance Supermarket is focused on making life insurance easier and more accessible with simplified coverage and policies that are tailored to meet the needs of busy, young parents like you. With our straightforward products, quick and easy online application process, and knowledgeable advisors, you'll have the assurance that you and your family will be secure and protected from any potential financial strain.

Take ownership of your life insurance needs today, and let Insurance Supermarket help you make an informed decision.

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