Before Getting An Affordable Term Life Insurance Quote
If you're a healthy, working adult, you should seriously consider term life insurance. Term life insurance is by no means cheap, but it's also not nearly as expensive as whole life or universal life insurance. And it will protect your loved ones financially if anything ever happens to you.
You may be wondering why term life is better than other types of policies. Well, here are some reasons:
- It's usually cheaper because the premiums are paid upfront and last for a limited amount of time (for example 10 years). - The premiums typically won't increase over time like with other types of policies because they are set at the beginning and don't change based on health status or age. - You can use that money to pay off your credit cards or student loans, or save it for retirement. - The coverage stays the same throughout the policy period, unlike whole life policies which increase over time.
There are three main types of term life insurance:
1. Level Term Life Insurance – This is generally purchased with a 20 year term and is usually used to replace income in the event of a premature death.
2. Decreasing Term Life Insurance – This type of policy will decrease every year after the initial term is over until it reaches a residual amount at the end of its term (usually 10-15 years).
3. Increasing Term Life Insurance – This type of policy will increase every year after the initial term is over until it reaches a maximum amount at the end of its term (usually 10-15 years).
You should also make sure that you buy a policy with a guaranteed level premium. This means that your premiums will remain the same throughout the life of the policy.
Buy a Policy From an Established Company
Just like anything else, there are lots of companies out there selling different policies. Some companies are more established and reputable than others, though, so you should try to buy your insurance from one of those companies. Almost all major insurance companies sell enough policies to establish themselves as reputable and stable in the industry.
Nationwide, Allstate, State Farm and Liberty Mutual are some examples.
If you have any questions about term life insurance, or need advice on what kind of policy is right for you, talk with an independent agent. An independent agent can offer you a variety of options from multiple companies, and will help you figure out which policy is best for your needs.
You should also make sure that you buy a policy with a guaranteed level premium. This means that your premiums will remain the same throughout the life of the policy.
Get Quotes from Different Companies
Don't just buy one policy because it's convenient. Get quotes from different companies for comparison purposes, and buy the policy that's right for you at the lowest price possible.
Stop smoking to save money on your life insurance. Smokers pay as much as 50% more for their insurance than people who don't smoke. It's one of the easiest ways to save money on insurance, so if you smoke, consider quitting now.
Make sure you buy enough coverage. If you die without enough insurance coverage, your spouse and children won't be protected. You should at least buy enough coverage to replace 1-2 years worth of income at your current salary rate (keep in mind that this is not the same thing as a final paycheck). You should probably have at least twice that amount for a safe amount of coverage though.
Stop investing once you're old enough to retire . While your money is safe in a life insurance policy, there is yet no guarantee that you will receive any periodic platinum-level payments. So once you've saved enough to retire, take all of your investment earnings each year and deposit them directly into your life insurance contract. You'll be able to make as many investment changes and additions as you like over the course of the policy without having to worry about additional costs or restrictions. This will also give you access to extra income during retirement if for some reason your investments drop significantly.
If it's not necessary, ditch the term life insurance policy after a few years. This assumes you have enough money to take care of your loved ones if something were to happen to you. If not, make sure you continue your policy until it's no longer needed.
If you do need a life insurance policy, consider taking out a permanent policy. Sometimes they will cost a little more in the beginning but they will stay the same for as long as you pay for it. You won't have to worry about extra costs or changes in the future.
If you do buy term insurance and decide later on that you want whole life insurance instead, don't worry! It's possible to switch from one type of policy to another without having to worry about additional costs or restrictions. This is another reason why it's important to buy term life insurance--you'll be able to switch your policy with no penalty if you decide that whole life insurance suits your needs better in the future.
If you own a home, consider taking out Life Insurance to protect your mortgage. Home equity life insurance policies will protect the value of your home in case something happens to you, and they're relatively inexpensive. Just make sure not to buy more than you need or anything with an extended payout period like Whole Life or Universal Life.
Buy a policy for the correct amount of coverage . The amount that you choose should match what would be necessary if something were to happen. If you're overpaying, you may not have enough money for your family. If you're underpaying, you may run into issues with the government.
There are many companies who offer different types of insurance plans and options for people to choose from. Because of this, the price for insurance plans can vary significantly between companies and their policies. For this reason, it's important to compare a number of different life insurance policies before making your decision to purchase one or not. The best way to start is by shopping online at websites like http://www.lifepositive.com which provide all kinds of comparisons between companies and policy options so that customers can get the best deal possible!
Take advantage of money-saving promotions when available . Many life insurance products allow you to purchase coverage at a lower rate if you take advantage of special promotions and sales. It's important to note that these promotional rates will not be available every year, but they are good when they are.
Go with the company that has the great customer service . You want your life insurance company to have friendly, knowledgeable employees who can answer all of your questions about the policy and any concerns that you might have in regards to it. If a company doesn't offer great customer service, consider going with another one!
Get quotes from different companies for comparison purposes , and read reviews before making a final decision .
Make sure you buy a policy that will stay the same throughout the lifetime of the policy. If your premium rate increases at any time during the life of your policy, you should take this into consideration and see how you might be able to afford it. You should also make sure that your term length is appropriate for your needs, and will be long enough to cover all of your family's expenses.
Life insurance will benefit you now by helping to provide financial protection for your family if something were to happen to you unexpectedly in the future.
Conclusion
There are a number of different life insurance policy options on the market today. Understanding the different types of policies is key to finding the one that will work best for your needs. With good research and comparison shopping, you should be able to find a policy that will give your family the protection they need if something were to happen to you.
However, keep in mind that while all forms of life insurance are beneficial, it can be very expensive for individuals or families that don't have a high income or large sum assets, and there may not ever be an affordable option for them unless they can decrease their current expenses or come up with some other type of money-making plan.