Term Life Insurance

Description

Term Life Insurance

Buying insurance of any kind is often confusing. In order to compare policies by price, you have to be sure that each policy carries the same benefits for the same amount, and figure in a dozen different factors. It’s enough to set your head spinning in most cases.

It may be tempting to complete an online form to receive a quote.  Most people do it because they don’t want to speak to an agent. These sites claim that they’ll shop around to get you the lowest rate. The implication is they’ll shop your information to several insurance companies and give you a quote.  Given the way insurance companies actually work – THIS CAN’T BE DONE.   In most cases, IT’S MISLEADING.

You see … all most of these sites are, are contact information collection sites.  In almost all cases, you will put all of your information into the form and the end result is that you’ll get a call or email from about 5-10 insurance agents to which your information has been sold.  If you’ve ever done it, YOU KNOW EXACTLY what I’m talking about.  You will then continue to get calls for months if not years afterward. Please Consider – not putting your information into those sites!  Consider contacting me.  I will never sell your information and if I can’t help you get a policy at a competitive rate, you will never hear from me again if you don’t want to.

Term life insurance coverage can be relatively easy to comparison shop. It simply covers you in the event that you die before the end of the term for which you are covered.  Let your fingers do the walking – I will shop it around for you.

How Term Life Insurance Works

Term life insurance will pay out a specified lump sum to the person that you name as beneficiary in the event that you die before the policy expires. The payout is subject to a few exclusions, most often suicide or other self-inflicted conditions.

Other than deciding if you want guaranteed or renewable premiums, there’s no need to worry about other bells and whistles, so comparing policies is a simple matter of comparing premiums among the various life insurance providers.

How Much Coverage Do You Need?

The biggest decision you’ll face is how much life coverage you need. The general rule of thumb is that, at a bare minimum, you should provide at least enough to pay off your outstanding debts and cover your funeral expenses. The face value of your policy should cover any remainder on your mortgage and other debts, and provide a cushion to help your family get back on their feet financially after your death. If you have young children, you should also cover your expected annual salary multiplied by the number of years until the youngest is no longer financially dependent.

What Factors Are Considered in Assigning a Premium?

There are a number of factors that may affect how much you pay for your policy aside from the amount of the death benefit you choose. These include your age, your gender, the state of your health and any pre-existing conditions, and whether or not you smoke. Smokers can expect to pay higher premiums than those who don’t use tobacco products.

Why Should You Buy Life Insurance?

If you are the major breadwinner or a major contributor to family income, you should be insured. No one likes to imagine what will happen if they die, but it makes sound financial sense. Potentially, your life insurance benefit can mean the difference between your family keeping the home in which you live and losing it to debt if you are no longer able to provide for them. In general, if you are carrying a mortgage, you should carry at least enough insurance to cover the remaining mortgage so that your heirs aren’t left with an ongoing financial impact.

Tips To Help You Save Money on Life Insurance

• Only buy what you need
• Get the most appropriate coverage for a mortgage