How to Get Term Life Insurance at a Low Price
Are You Looking for Term Life Insurance at a Low Price?
Did you know that term life insurance costs less than you think?
Studies performed by LIMRA indicate people with no life insurance over-estimate the cost by three times. A healthy 30 year old man would pay less than $13 a month for a 20-year, $250,000 level term life policy.
How Can I Compare Low Prices on Term Insurance?
You have several options for comparing term rates:
What Do Term Price Quotes Provide?
When you request a quote for term life you will receive the name of the insurance companies offered, their financial strength ratings, and the annual cost of life insurance from the insurer.
The financial ratings are important because they are an indication of the insurer’s financial stability – how capable they are of meeting their financial obligations, and paying their life insurance claims.
Why is Term Life Insurance So Affordable?
There are several reasons that term insurance is the lowest priced life insurance. Among the key factors are:
What is the Lowest Priced Term Life Plan?
Since term insurance is temporary life insurance, the shorter your “term” or duration of coverage, the lower your premium because there is a lower risk that you will pass away in that time period.
In addition, the lower the amount of life insurance coverage you purchase, the lower your annual premium.
A 10 tear term life plan will have lower annual premiums compared to a 20 year term plan, because the chances are lower you pass away in the next 10 years.
What Insurance Carriers Offer Low Cost Term Insurance?
There are hundreds of life insurance companies offering term insurance in America. Some of these carriers may be more competitive insuring certain groups of consumers; such as, single people, seniors, diabetics, smokers or healthy people.
However, some of the most competitive insurers for term life protection include Banner, Transamerica, New York Life and Northwestern Mutual, among others.
How Does Term Insurance Work?
Level term life insurance is a type of insurance that provides short term life insurance protection for a specific number of years.
With level term you choose your term for coverage – how long you will be protected. The premium you pay for your life insurance coverage will depend on the length of your term and the amount of life insurance.
Other factors that affect your premiums include your age, gender, health, driving record, hobbies, occupation, lifestyle, tobacco use, and other risk factors that may impact how long you live.
With level term life you pay premiums that stay the same each year for the entire duration of your term policy. In addition, your life insurance coverage stays level each year.
A 10 year $250,000 level term policy for $250 premium per year.
You would have $250,000 of life insurance protection for a period of 10 years, and each year you would pay $250 to the insurance company to continue your life insurance.
If you pass away during the 10 year term, your family members (beneficiary you choose) would receive the $250,000 death benefit payment free from federal income tax.
If you are alive at the end of ten years, your life insurance expires. At that time, you may have the option of renewing your 10-year term policy for another term of 10 years at a higher premium based on your age at that time.
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