The many coverage levels, terms, and types of life insurance make comparing different policies difficult. It’s important to make sure you’re comparing apples to apples when shopping for a policy. Here are some guidelines to help you do that.

Keep a record of the following details for every quote you get.

• Name of the insurer and source of the quote: You will want to keep track of where you got the best life insurance quote.
• The underwriting class used in the quote: Your underwriting class is a way to measure your health. The healthier you are, the better your class. The better your class, the lower your policy premiums. If you don’t use the same underwriting class when comparing policies, your quotes will vary and won’t match the final offer from the insurance company.
• Insurance type: The cost of life insurance policies varies dramatically from one type to another. You’ll find more details on insurance types below.
• Coverage amount: Make sure the coverage amounts are the same for the policies you are comparing.
• Insurance term: The term length of a policy will affect the final quote, so you need to be consistent.
• Monthly premium: This is the monthly cost of the insurance. Some insurance companies provide a discount if you pay it as an annual lump sum. If that is an option for you, consider this when comparing prices.
• Financial rating: Financial strength ratings estimate the risk of an insurer not being able to meet its financial obligations, such as paying claims. Although the details vary slightly depending on the agency, ratings are typically based on factors such as a company’s assets and revenue from premiums compared to how much it pays out in claims.

This data is a great start when shopping for the best life insurance policy. But there are many other factors to consider. The questions below will help you when comparing the features and rates of life insurance companies.

It all depends on your personal financial circumstances and goals. That said, people who are responsible about saving and investing often find it more cost-effective to buy term insurance and invest on their own.

Permanent life insurance policies, such as whole life insurance and universal life insurance, are several times more expensive for the same level of coverage.

Although it is true that permanent life insurance includes a cash-value portion and doesn’t expire, you have to pay a high price for these features. Typically, you get better returns and pay lower fees if you use dedicated investment tools instead of life insurance.

Whole life insurance products, however, can be useful. If you’re a high-income individual and you’ve already maxed out your other tax-deferred accounts, whole life insurance can be a useful part of managing your estate. And if you have a special-needs dependent who will need care after you are gone, whole life is a good option.