When you purchase an insurance policy it is important to know exactly what you are buying and how much it will cost. The insurance industry is one that is unavoidable, yet can often leave those shopping for policies confused or even intimidated regarding what they need and how much it should cost. Purchasing the wrong insurance policy can be costly, however not having the right coverage can be more so. Here we look at life insurance, specifically term life insurance and how you get the best policy at an affordable rate.
What is term life insurance?
Term life insurance is a popular choice for individual or young families that want to have life insurance to cover a specific period of time. With term life insurance, you agree to pay your premiums for a fixed period of time. This may be 5, 10, 20 or 30 years depending on the policy you select. If you were to pass away during this term, your beneficiaries would be paid the benefits from your life insurance policy. If at the end of the term you have not converted or renewed the policy, the policy will expire and no benefits will be paid.
Why choose term life insurance?
Term life insurance is more affordable than whole life insurance, making it an less expensive option for families who want additional coverage for young children or surviving spouses. Since payments are fixed, you do not have to worry about increases to the premium throughout the term coverage. The money you save in purchasing term life insurance versus whole life insurance can be invested in other areas which will allow for growth, adding another level of financial protection for your family.
How to get term life insurance?
Finding life insurance has never been easier. You can begin your search from the comfort of your home by using the Internet. There are dozens of websites that allow visitors to compare term life insurance policies and rates to find the best policy to fit your needs. To get a term life insurance quote, you will be required to enter personal information which will better allow the provider to give a realistic quote. Be prepared to answer some of the following questions:
- State of residency
- Date of birth
- Height and weight
- Do you smoke or use tobacco products
- How much insurance you need
- Term period
- Health class
- Full name, telephone number and email
Rules of Thumb for Term Life Quotes
As a general rule this is the information most websites will request in order to compare rates or provide a quote. Once you have entered this information you may be able to receive information immediately or you may have information sent to you via email. When you use the Internet to compare rates and get quotes from several companies you benefit by getting a general idea how much your coverage will cost. This will take a lot of the legwork out of your search and help you narrow down the search for an affordable provider. When you have selected one or two policies that fit the bill, take some extra time to research the provider and carefully read the terms to avoid buying a policy that may not be right for you.