Comparison of Insurance Plans

Life Insurance

Life insurance is regulated by both state and federal governments, so the ways the products function don't vary much between insurers. The primary comparison you want to make is to decide what type of life insurance policy is right for you. Term life provides a temporary death benefit at a comparatively low cost without any investment vehicle attached to it. Permanent life insurance is designed to last your whole life and comes with some tax advantages. Some permanent plans offer flexible premium payments. Also compare the customer service record and financial strength of the insurer you select, because these indicate how likely it is that you'll be able to settle your claim fairly.

Health insurance is so diverse and has so many options that vary by state that you may want to consult a professional adviser. Do not simply choose the least expensive option, because that usually means fewer benefits and more restrictive coverage. Look at whether the plans allow you to see the doctor you want as well as the differences in benefits if you choose a doctor outside the plan's network. Compare deductibles and other out-of-pocket costs such as coinsurance percentage. Verify the plan covers services you need. For example, if you are pregnant or planning to get pregnant, make sure your plan covers prenatal care.

Differences between auto insurance policies can be hard to spot. For example, some companies will allow for some types of business use of your personal car, such as working in sales or contracting, while others exclude all business use. Ask your agent about this because this information does not typically appear on quotes. Also check with your state's department of insurance to see the number of complaints filed against your insurer versus the number of claims it has handled. When comparing quotes, verify that the liability limits, deductibles and optional coverages are the same for all insurers before considering price.

The types of coverage available with homeowner insurance are relatively standard in all states. When you compare policies, look primarily for the amount of protection afforded by each coverage. For example, a policy with $400,000 dwelling coverage is likely more expensive than one with only $350,000, but it may better protect your home. Also, compare liability limits and make sure you have enough to protect your family's assets. Look for replacement cost coverage, which replaces damaged items with new ones regardless of market value. Some policies only protect against specified causes of loss while others cover everything except what is specifically excluded from the policy.