Warren Buffett is one of the world’s greatest investors, and he has a quote about his philosophy of buying investments: “Price is what you pay. Value is what you get.”

This means that a low-priced stock is not always the best value – and a high-priced stock might still have a lot of room to grow.

Just as Warren Buffett takes this “value” approach to buying stocks, you should also think about “what you pay” and “what you get” when it comes to buying life insurance.

We hear all the time from customers who call asking for the cheapest life insurance we can find.

But it’s short-sighted to only focus on price – to only focus on “What you Pay” for life insurance.

Instead, think about the overall value that you are receiving from your life insurance policy. Think about “What You Get” from your life insurance as well.

Ask yourself, “What do you most want to get out of having life insurance?”

Do you want the highest amount of coverage?
Do you want the longest possible term?
How old are you now, and how old are your children, and how long do you want to have your family to be protected?
What are your goals for buying life insurance? What do you need that money to do for your family, in the event that you’re not there anymore?

Depending on how you answer these questions, you’re going to Pay a different amount of money for your insurance premium, and you’re going to Get a different set of benefits and advantages depending on the details of your life insurance policy.

First, let’s talk about what you Pay for life insurance.

Term Life insurance can be pretty cheap. For example, our advisers can connect you with Term Life insurance with $500,000 of coverage, for as little as $30 a month (or less).

The price of term life insurance depends on the amount of coverage, the age and health status of the policyholder, and the length of the “term” – the duration of time that you’re covered by the policy. For example, you can usually choose from 10 year, 20 year or 30 year Terms.

This means that if you are 30 years old and you buy a 30-year Term Life Insurance policy with a $500,000 coverage amount, you are covered until you reach the age of 60. If you die at any time between now and then, your family will receive $500,000.

Keep in mind that you need to weigh the tradeoffs between “What you Pay” and “What you Get.”

Shorter Terms, like a 10-year Term instead of a 20-year Term, have lower premium costs, but you get a shorter duration of coverage. Choosing a lower coverage amount, like choosing a $250,000 policy instead of $500,000, can save you money on your monthly premium payments, but it provides only half of the coverage in case you die.

If you call MyInsuranceExpert.com, our advisors can help you weigh the tradeoffs, learn your options, and make the best choice for you and your family.

Remember: Price is not the only consideration. Be like Warren Buffett. Pay attention to “what you get” from  your life insurance, as well as “what you pay.”

Illustration of Warren Buffet found from “field-negro.blogspot.com”