Buy Term Life Insurance Online – It's Quick And Easy
If you're wondering "what is term life insurance" or "how do I find the cheapest term life insurance," this guide is for you! It's quick and easy to purchase, and it can cover your dependents for up to 25 years. Term life insurance can help protect you from unexpected, costly expenses that might arise if something were to happen to your future self.
When considering a term life insurance policy, there are many factors that need to be considered before making the decision on whether or not you want or need one. Let's take a look at some of these factors in more detail so that you're fully informed on what decides whether or not a policy should be purchased.
Protecting Your Future Self
Buying term life insurance can be a great way to protect your future self from unforeseen expenses. These can range from unexpected hospital bills or medical treatments, to lost wages, and a host of other unexpected situations that could arise if something were to happen to you. These unfortunate events are the most common reasons for needing term life insurance over permanent policy options, as long-term policies are less likely to cover the types of issues you want covered. You may also want to consider buying a plan in addition to your primary burial or funeral plan so that it helps with funeral costs and other pre-death expenses.
Review the Actual Cost of Your Policy
Before deciding on whether or not term life insurance is right for you, it's important to understand what the actual cost of all the options are.
In general, term life carriers provide a relatively small amount of insurance protection over your entire insured term. For example, a $100,000 policy covers only $106,000 in coverage with an 80% payout.
A huge misconception about term life insurance is that it's cheap. While they're certainly less expensive than a permanent policy, the costs for term insurance can still be quite high. The cost of protection and benefits does contribute to the overall cost, but there are other factors that factor into the price as well.
How Much Term Life Insurance Costs
In general, term life carriers provide a relatively small amount of insurance protection over your entire insured term. For example, a $100,000 policy covers only $106,000 in coverage with an 80% payout. This is because the term life carrier anticipates that in many cases, your actual death benefit will be less than the amount guaranteed by the policy. These carriers expect that you'll file a claim at some point during your insured term.
Be aware of these expectations and any limitations on the coverage provided by your policy, as you buy a policy, you may also want to purchase a permanent life insurance plan as well. It can be helpful to purchase both together, although it's not required – in many cases.
How Much Term Life Insurance Costs Per Month
The cost of term life insurance can vary depending on the carrier you choose, the amount needed, and the type of policy. Also, it's important to be aware that there are different types of plans that provide varying levels of coverage. In general, term life insurance is much more expensive per month than permanent plans. For instance, a $100,000 ten year term life policy will cost $112 per month for a total cost of $2,040 per year or $22 per month.
The expense of term insurance is also influenced by how long you'd like to have coverage for and what your other policies provide protection for in case something were to happen to you.
It's quite common to get a mix of permanent and term life insurance. It makes sense to purchase both, as they protect against different situations.
In general, the younger you are when you start a term life policy, the less expensive it will be per month. For instance, if you're 25 years old and get a $100,000 ten year plan; at this age, it would cost $39 per month for a total cost of $480 per year. However, if you were 40 years old when you bought this same plan; it would cost $111 per month for a total cost of $1,680 per year or $98 per month. This is because the first few years of coverage are much less expensive than later in your policy term.
Paying for Term Life Insurance
Term life insurance premiums can be paid monthly, quarterly or yearly. However, if you're only paying for a certain number of years, it's usually best to pay for your whole policy term at once. It makes it more cost-effective and easier on your financial situation if you're only paying for a few years at a time.
There are different payment methods available with term life insurance and most carriers will work with you to find the best option that suits your needs, budget and time frame. They may require you to pay a certain amount upfront, and then make monthly payments on the balance. Some carriers even allow a combination of the two options.
In general, premiums are required to be paid on an ongoing basis, no matter what kind of policy you choose or for what duration; unless it's specifically written in your policy that you can cancel your coverage without cost due to a pre-existing condition or other reasons.
Within certain time limits, if you pass away and the payment is past due, there may be some additional administrative costs associated with canceling your plan versus keeping it going after death. It's best to review your policy and terms agreements to make sure you understand how you can cancel your plan and what will be involved with doing so; before making a decision.
Term Life Insurance Costs Savings
There are a number of ways to save money with term life insurance, most of them relating to the type of policy you choose. The more coverage you get, the higher the premium, so it makes sense to buy as much coverage as possible for the lowest cost. However, this may also increase your annual term insurance costs. It can be helpful if one requires less than 100% coverage and is willing to buy a higher level of protection from the carrier for a lower rate.
What Is Term Life Insurance?
Term life insurance is a type of temporary life insurance policy that provides coverage for a specifically chosen period of time. This term can range from a few months to up to 20 years. The length of time you choose will affect the cost you pay for your policy. In general, the longer the coverage, the more expensive it will be. In some cases, if you're purchasing a long-term plan, you may be able to get discounts on your premium.
The most commonly purchased term life plans include three, five and ten year terms however, there are also policies available with one to 20 year terms or even permanent plans with no expiration date at all.
Conclusion
In general, term life insurance is less expensive than permanent coverage. However, it's important to consider that it is temporary and may not be right for everyone. If you prefer to have a long-term plan, you can find term life insurance that provides coverage for as long as 20 years.
When comparing premium costs of term life insurance to permanent policies, the premium for term plans tends to be much lower. In many cases, the annual premium may be less than $100 per year or even just a few hundred dollars per year; this is considerably cheaper than a more traditional long-term policy and covers you in case of an unexpected death while you're still young and healthy.