Buying life insurance doesn’t have to be complicated. But there are a few things worth thinking through before you sign anything. Here’s what matters most.
- How Much Coverage You Actually Need
- Which Type of Policy Fits Your Situation
- Your Health and How It Affects Your Rate
- The Financial Strength of the Carrier
- Who Your Beneficiaries Are
- Policy Riders Worth Knowing About
- Why Comparing Multiple Carriers Matters
- Your Pre-Purchase Checklist
- Before You Buy, Confirm You've Considered:
- Let Ozzo Walk You Through It
Life insurance is one of the most straightforward financial products you can buy. But a little preparation goes a long way. The decisions you make upfront, like how much coverage to carry, which policy type to choose, and which carrier to trust, will shape how well this policy works for your family when it matters. These are the seven things worth getting right.
1
How Much Coverage You Actually Need
This is the first and most important question. Too little coverage leaves your family exposed. Too much means you’re paying for protection you don’t need.
Start with your income. A common guideline is 10 to 15 times your annual salary. But that’s a starting point, not a formula. Your real number depends on your specific obligations: your mortgage balance, how many children you have, what debts you carry, and how much your spouse earns.
Think about what your family would need to maintain their current standard of living if your income stopped. That includes housing, daily expenses, education, debts, and a financial cushion for the unexpected. Add those up, subtract any existing savings or coverage, and you’ll have a clear target.
QUICK FORMULA
(Annual income × years of support needed) + mortgage balance + education costs + outstanding debts − existing savings and coverage = your coverage target
2
Which Type of Policy Fits Your Situation
There are two main types of life insurance, and each one serves a different purpose. Understanding the difference helps you avoid paying for features you don’t need or missing ones you do.
| Term Life | Whole Life | |
|---|---|---|
| Duration | 10, 20, or 30 years | Your entire lifetime |
| Monthly Cost | Lower | Significantly higher |
| Cash Value | None | Builds over time |
| Best For | Income replacement, mortgages, raising children | Estate planning, lifelong coverage, legacy goals |
| Complexity | Simple and transparent | More moving parts |
OZZO’S APPROACH
We don’t push one type over the other. We help you understand both and then compare real quotes from top carriers so you can see the numbers for yourself.
3
Your Health and How It Affects Your Rate
Your health is one of the biggest factors in what you’ll pay. Carriers assign you a rate class based on your medical history, current health, lifestyle, and family history. The healthier you are, the lower your premium.
Most traditional policies require a medical exam, which typically includes a blood draw, urine sample, blood pressure reading, and a health questionnaire. Some carriers now offer accelerated underwriting, which may skip the exam entirely if your application data meets their criteria.
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Conditions like high blood pressure, diabetes, high cholesterol, or a history of tobacco use won’t necessarily disqualify you. But they will affect your rate class and premium. This is another reason to apply sooner rather than later. Your health today is likely the best it will be for pricing purposes.
WORTH KNOWING
Different carriers weigh health factors differently. One company may rate you Standard while another gives you Preferred for the same health profile. This is why comparing carriers matters, and it’s something Ozzo does for every client.
4
The Financial Strength of the Carrier
Your life insurance policy is a promise. The carrier is promising to pay your beneficiaries a specific amount at some point in the future. That could be 10 years from now. It could be 40. The company needs to be around and financially capable of honoring that promise when the time comes.
This is where financial strength ratings matter. Independent agencies like AM Best, Moody’s, Standard & Poor’s, and Fitch evaluate insurance companies on their ability to meet long-term obligations. You want a carrier with strong, stable ratings.
AM Best Rating
Claims History
A company’s track record of paying claims on time and without unnecessary hurdles tells you a lot. Look beyond the rating and consider how a carrier treats policyholders during the claims process.
Company Longevity
Carriers that have been in business for 50, 100, or even 150 years have weathered recessions, market crashes, and pandemics. That kind of track record is meaningful when you’re buying a decades long promise.
Customer Reviews
- HOW OZZO HELPS
This is one of the main reasons Ozzo exists. We vet carriers for financial strength, longevity, and claims reliability before presenting them as options. When we recommend a carrier, it’s because we’ve already done the research you shouldn’t have to do on your own.
5
Who Your Beneficiaries Are
Your beneficiary is the person (or people) who receive the payout from your policy. This decision deserves more thought than most people give it.
You’ll name a primary beneficiary, which is the first person to receive the benefit. You’ll also name a contingent beneficiary, who receives the benefit if the primary beneficiary is unable to. You can name more than one person in either role and split the benefit by percentage.
A few things to keep in mind:
Be Specific
Review After Life Changes
Minor Children Need a Plan
Consider a Trust
6
Policy Riders Worth Knowing About
Riders are optional features you can add to a base policy. Some come at no extra cost. Others carry a small additional premium. Not all riders are available from every carrier, and not all of them are worth adding. But a few are genuinely useful.
| Rider | What It Does | Who It's For |
|---|---|---|
| Waiver of Premium | Waives your premiums if you become disabled and can't work | Anyone whose income funds the policy |
| Accelerated Death Benefit | Lets you access part of the benefit early if diagnosed with a terminal illness | Most policyholders (often included free) |
| Conversion Option | Allows you to convert a term policy to whole life without a new medical exam | Anyone who may want permanent coverage later |
| Child Term Rider | Adds a small amount of coverage for your children under one policy | Parents who want basic coverage for their kids |
| Return of Premium | Refunds your premiums if you outlive the term | Those willing to pay higher premiums for a guaranteed refund |
A NOTE ON RIDERS
Don’t add riders just because they’re available. Each one should solve a specific problem for your situation. A good advisor will help you identify which ones are worth the extra cost and which ones you can skip.
7
Why Comparing Multiple Carriers Matters
Not all carriers price policies the same way. Two companies can look at the same applicant and offer very different rates. This is because each carrier has its own underwriting criteria, preferred risk profiles, and pricing models.
One company might offer favorable rates to applicants with a family history of heart disease. Another might be more lenient with applicants who use nicotine products. A third might offer the lowest rates for people with perfect health. If you only get one quote, you’re assuming that company is the best fit for you. More often than not, it isn’t.
This is also where you’ll see differences in policy terms, rider availability, conversion options, and customer service. Price matters, but so does the overall package.
- Why This Matters
The difference between two carriers can easily be $15 to $30 a month for the same coverage amount and term length. Over a 20 year policy, that’s $3,600 to $7,200. Comparing quotes isn’t a nice-to-have. It’s one of the most effective ways to save money on a policy without reducing your coverage.
Your Pre-Purchase Checklist
Before you commit, make sure you’ve thought through each of these. Print this out or keep it open on your phone when you’re ready to start the conversation.
Before You Buy, Confirm You've Considered:
Coverage amount: Does it cover your mortgage, debts, education costs, and 10+ years of income replacement?
Policy type: Have you compared term and whole life options to see which fits your timeline and budget?
Health preparation: Are you aware of how your current health, medications, and family history may affect your rate?
Carrier strength: Does the carrier have strong financial ratings (AM Best A or higher) and a solid claims history?
Beneficiary details: Have you named primary and contingent beneficiaries using full legal names?
Riders: Have you reviewed available riders and selected only the ones that solve a real need?
Multiple quotes: Have you compared rates and policy terms from at least two or three carriers?
Let Ozzo Walk You Through It
We vet carriers for financial strength, longevity, and claims reliability. Then we compare real quotes side by side so you can make a confident decision. No jargon. No pressure. Just clear guidance from a team that takes this seriously.
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