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Life insurance policy choice 'should match personal needs'

July 21, 2010

People looking to purchase a life insurance policy have a number of factors to consider when doing so.

One man who is trying to buy term life insurance recently wrote in to the Cincinnati.com website to ask the advice of two financial experts, Nathan Bachrach and Ed Finke.

The letter writer stated his confusion at the differing costs of apparently similar polices and asked for help in choosing the best one.

Mr Bachrach and Mr Finke said there were a number of factors linked to the variable prices, related to things such as the length of the policy and how each life insurance provider classifies customers in terms of their lifestyle choices and overall health.

"Selecting an insurance carrier and agent should be determined by matching your personal needs," the pair advised.

"A reasonable premium amount is based on your needs and what you can afford."

Earlier this week, Healthy Financial Habits commentator Greg Jackson said that one of the advantages of term life insurance is that it is paid at a specified rate over an agreed period, making it an affordable policy.

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