Find the Best Life Insurance Quotes in Baltimore, MD

How to choose life insurance in Baltimore

Life insurance is a vital part of your long-term financial planning and prevents your family from experiencing financial hardship if you die unexpectedly. The benefits from a life insurance policy are income tax-free and can be used for multiple purposes, including:

• Funeral and burial expenses
• Replacement income
• Education expenses for your children
• Estate taxes
• Business protection for small business owners
• Medical bills, car loans or mortgage
• Charitable donations

Although many companies in Baltimore offer life insurance to their employees, these policies may not have a large enough death benefit to sufficiently protect your family. In addition, these policies generally expire when the term of employment does, which could leave you without life insurance at a financially vulnerable time.

Types of life insurance

Insurance policies require you pay a regular premium (usually monthly, semi-annually or annually). There are multiple variations of life insurance available in Baltimore, and the type you choose will depend on your specific needs. Some of the most popular forms of life insurance are listed in the chart below.

Type	Coverage
Whole life	Lifetime coverage with guaranteed return on investment and cash value that can often be borrowed against
Term life	Coverage for predetermined period of time, no cash value
Universal life	Lifetime coverage, guaranteed benefit, more flexible than whole life policies
Final expense/burial	Covers cost of anything associated with the death of policyholder
Variable life	Lifetime coverage, has an investment component
Simplified issue life	Term life without medical exam, rates based on health questionnaire
Guaranteed issue life	No medical exam or health questionnaire, term life, higher premiums
Group life/employment-based life	Limited benefits, expires at retirement/when no longer employed by company

The cost of life insurance in Baltimore

Once you know the type of life insurance you want to buy, you can start comparing rates. The cost of life insurance in Baltimore is determined by multiple factors, such as your age and medical history. Other factors considered in the calculation of life insurance include:

• Gender
• Occupation
• Family medical history
• Nicotine use
• Driving record
• Planned travel to dangerous parts of the world
• Dangerous hobbies

If you’re young and healthy, it might seem like it makes the most sense to go with the policy that offers the minimum payout benefit you need at the lowest cost. When it comes to insurance, however, opting for the policy with the lowest premium isn’t always the best choice. Your insurance agent can work with you to decide which policy will best suit your needs.

Choosing a life insurance provider in Baltimore

State and federal laws require life insurance providers to maintain enough funding to pay their future obligations, but the importance and value of life insurance make it worthwhile to research a company before trusting it with your family’s financial future. The best way to do that is by checking the company’s credit rating.

Independent credit rating companies such as Standard and Poor’s, Moody’s and A.M. Best provide ratings for a company’s fiscal stability. In general, the largest and most well-known life insurance providers, such as Prudential Financial, State Farm, New York Life Insurance Group and MetLife, are in excellent financial health. Customer reviews are also a good way to assess the quality of a life insurance company.

Don’t ignore your instinct when comparing life insurance providers. If you call to get information and the agent lacks the knowledge to answer your questions, tries to pressure you into buying a policy before you’re ready or provides poor customer service, steer clear. Chances are your beneficiaries will encounter the same when they submit a claim down the line.

For more information on life insurance and your rights as a policyholder in Baltimore, check out this consumer guide to life insurance by the Maryland Insurance Administration.