{"id":2864,"date":"2026-02-18T22:00:56","date_gmt":"2026-02-18T22:00:56","guid":{"rendered":"https:\/\/ozzoinsurance.com\/blog\/?p=2864"},"modified":"2026-03-24T23:48:26","modified_gmt":"2026-03-24T23:48:26","slug":"7-things-to-consider-before-you-buy-life-insurance-2","status":"publish","type":"post","link":"https:\/\/ozzoinsurance.com\/blog\/7-things-to-consider-before-you-buy-life-insurance-2\/","title":{"rendered":"7 Things to Consider Before You Buy Life Insurance"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
\n

\n Buying life insurance doesn\u2019t have to be complicated. But there are a few things worth thinking through before you sign anything. Here\u2019s what matters most.\n <\/p>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
\n\t\t\t<\/path><\/svg>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t

1<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t
\n\t\t\t\t\t

How Much Coverage You Actually Need<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

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.<\/p>

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.<\/p>

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

QUICK FORMULA<\/strong>
(Annual income \u00d7 years of support needed) + mortgage balance + education costs + outstanding debts \u2212 existing savings and coverage = your coverage target<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t

2<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t
\n\t\t\t\t\t

Which Type of Policy Fits Your Situation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t
<\/th>Term Life<\/th>\tWhole Life<\/th><\/tr><\/thead>
Duration<\/b><\/th>10, 20, or 30 years<\/td>Your entire lifetime<\/td><\/tr>
Monthly Cost<\/b><\/th>Lower<\/td>Significantly higher<\/td><\/tr>
Cash Value<\/b><\/th>None<\/td>Builds over time<\/td><\/tr>
Best For<\/b><\/th>Income replacement, mortgages, raising children<\/td>Estate planning, lifelong coverage, legacy goals<\/td><\/tr>
Complexity<\/b><\/th>Simple and transparent<\/td>More moving parts<\/td><\/tr><\/tbody><\/table><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tFor most families in their 20s, 30s, and 40s, a term policy is the practical choice. It provides the highest coverage for the lowest cost during the years when your financial responsibilities are greatest. Whole life can make sense later, depending on your goals, but it’s not where most people should start.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

OZZO’S APPROACH<\/b>
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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t

3<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t
\n\t\t\t\t\t

Your Health and How It Affects Your Rate<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

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.<\/p>

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t

4<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\tCommon rate classes: Preferred Plus, Preferred, Standard Plus, Standard\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t

2x<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\tA Standard rate can cost roughly double what a Preferred Plus rate costs\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t

30 min<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\tTypical time for a life insurance medical exam\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

WORTH KNOWING<\/b>
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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t

4<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t
\n\t\t\t\t\t

The Financial Strength of the Carrier<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

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.<\/p>

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t

\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
\n\t\t\t<\/path><\/svg>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t

AM Best Rating<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\tThe most widely referenced rating for insurance carriers. Look for an A (Excellent) or A+ (Superior) rating. This indicates a strong ability to meet ongoing policyholder obligations.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
\n\t\t\t<\/path><\/svg>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t

Claims History<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
\n\t\t\t<\/path><\/svg>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t

Company Longevity<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
\n\t\t\t<\/path><\/svg>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t

Customer Reviews<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\tReal experiences from policyholders and beneficiaries reveal how a company operates day to day. Look for patterns around communication, responsiveness, and how smoothly claims are handled.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t