What to Ask When Buying Term Life Insurance?

Term Life Insurance Questions to Ask

 

If you’re considering the purchase of a term insurance policy to protect your family you may have some questions that need answering to help you better understand term life coverage.

Here is a list of some common questions about term life you should ask before buying a policy:

 

What is term life insurance?

It’s life insurance protection that lasts for a temporary period of time.

 

How much term life insurance to buy?

To determine how much life insurance you need you’ll want to consider your total assets, savings, debts, income, and future financial goals.

Use a term life insurance need calculator to figure out how much life insurance to buy.

 

What does term life insurance cost?

Your cost of coverage will depend on the duration of your coverage and amount of insurance. In addition, your age and gender impact your cost. Also, your personal risk factors including your health, lifestyle, tobacco use, driving record, hobbies, occupation, and height-to-weight ratio, among other things.

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How long does term life insurance last? 

Term insurance usually offers several options for coverage including 10, 15, 20 or 30 years.

 

How to save money on term life insurance? 

There are several ways to save on your term insurance including quit smoking, get healthy, lose weight, lower your cholesterol, buy coverage while you are young and healthy, compare pricing from several insurers, and choose coverage for a shorter duration to get lower annual premiums.

 

Important features of term life insurance:

  • Renewable Coverage – Allows you to renew your current term policy when it expires so you can continue your insurance, without having to take a exam to qualify for the renewal policy.
  • Convertible Coverage – Allows you to convert your term coverage to a permanent policy by a specific date, so you can have guaranteed lifetime protection.

 

How long is your premium guaranteed?

With level term insurance your premium is guaranteed to remain the same each year for the entire duration (term) of your policy.

 

How long is coverage guaranteed?

Your term life plan is guaranteed to last for the entire duration of your policy term, as long as the premiums are paid on time.

 

What types of term life insurance are available?

There are several types of term plans available including level term, decreasing term, return of premium, and no exam term life insurance.

 

Types of Term Insurance:

  • Level Term – The lowest rates with level premiums and a level amount of coverage for the entire duration of your policy term. 
  • Return of Premium – Get your premiums back if you outlive the duration of your policy. 
  • Decreasing Term – Pay level premiums but the amount of coverage declines each year.
  • No Exam Term – Purchase term insurance without taking a health exam.

 

Which term life insurance is best?

The best policy for term insurance is the one that offers the coverage you need at the most affordable price from an insurance company with the highest financial strength rating. 

Level term life insurance is the most popular type of term policy. It offers level premiums and level amounts of coverage for a duration lasting up to 30 years.

 

What is the cheapest term life insurance?

Level term life insurance offers the lowest premiums available for term insurance. 

The lowest priced level term policy would be term insurance for the lowest amount of coverage (usually $50,000) and for the shortest term which may be 5 or 10 years.

By comparing prices from several life insurance companies you’ll be able to find which insurer offers the lowest rates.

 

Best term life insurance company?

There are hundreds of insurance companies which offer term life insurance. Several of the highest rated insurers offering competitive pricing include Prudential, MetLife, Northwestern Mutual, Transamerica, and New York Life, among others.

Here is a list of the top term life insurance companies in America.

 

Can I buy term life insurance without an exam?

Yes, if you qualify, you may purchase term life with no exam needed. Haven Life (backed by Mass Mutual) offers up to $1,000,000 of coverage for healthy applicants.

Here’s how to get term life insurance without taking a medical exam.

 

How much term life insurance can I buy?

The amount of life insurance offered to any one individual may be limited to 10-20 times your annual income. There are many life insurance carriers that offer up to $2,000,000 or more of term life insurance protection.

Here’s how to buy term life insurance online.

 

Does term life insurance expire? 

Yes, term insurance expires at the end of your policy term. For example, if you have a ten-year policy, your coverage expires at the end of the 10-year period.

 

Does term life insurance have any cash value?

No, term insurance is pure protection, not an investment. A term life policy does not build up any cash value inside the policy.

 

Who should buy term life insurance?

Anyone with a temporary need for life insurance that will last for a duration of 30 years or less.

So, if you have a family, own a home, are on a budget, need the maximum amount of life insurance for your money, or need life insurance that will last for thirty years or less, then term life may be right for you.

 

Reasons to buy term life insurance?

There are several popular reasons for purchasing a term policy, including: 

  • To replace main breadwinner’s income
  • To pay off home mortgage loan
  • To pay for child’s college education
  • To maintain family’s lifestyle
  • To pay for monthly living expenses
  • To provide for spouse’s retirement
  • To pay off auto loan
  • To leave legacy for family members
  • To pay for child’s wedding
  • To provide up to 30 years of life insurance protection

 

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Top Pick – JRC Insurance Group

JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote

 

Highly Recommended – Haven Life

  • Get up to $1,000,000 of affordable term life insurance today
  • Apply online in under 20 minutes, start coverage today
  • Backed by MassMutual, rated A++ by AM Best

Haven Life uses the information provided in your application to make an instant decision on your application. Healthy, qualified applicants (based on the information provided in your life insurance application) can be insured immediately with no medical exam while other applicants can receive immediate coverage pending a medical exam.

 


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