How to Choose Term Life Insurance

Are You Shopping for a Life Insurance Policy?

If so, you may be wondering what type of life insurance you need.

 

Types of Life Insurance

There are two basic types of life insurance: Term and Permanent.

Deciding which one is best for you is actually quite simple.

 

Term Life Insurance is temporary and provides protection lasting for a period of up to thirty years.

Term life is "pure protection", it does not have an investment feature and does not build up any cash value inside the policy. It provides only a death benefit. 

If you are alive when the "term" of your policy ends, your life insurance coverage expires with no payout. 

Term life offers coverage for a period of 10, 15, 20, 25 or 30 years.

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Permanent life insurance provides guaranteed lifetime life insurance protection, as long as you pay your premiums on time it will not expire.

Permanent life insurance offers a death benefit and it builds up some cash value inside the policy over time, from which you may take a loan.

 

Advantages of Term Life Insurance

 

• Pricing – Term life offers much lower pricing for coverage.
• Flexibility – Term life offers flexible terms form 10 to 30 years.

 

Advantages of Permanent Life Insurance

 

• Lifetime Protection – Guaranteed lifetime protection.
• Cash Value – Builds up some cash value inside your policy over time.

 

Term Life Insurance is Right for You

If so, you may be wondering which is the best term life insurance plan.

Not every term policy is the same, there are several things to consider when selecting the right policy to meet you and your family’s specific needs for financial security.

 

Important Considerations Include:

 

• Pricing – Which carrier offers the lowest rates?
• Coverage Amount – How much insurance do you need? Use a needs calculator.
• Duration of Coverage – How long do you need coverage – 10, 15, 20, 25 or 30 years?
• Renewability Option – Does your term life policy offer the option to renew coverage for another term, when your initial term ends?
• Conversion Privilege – Does your term life policy offer the option for you to convert your temporary insurance to permanent life insurance?
• Level Premium – How long are your premiums guaranteed to remain the same?
• Level Coverage – How long is your insurance coverage guaranteed to remain the same?

• Spouse Rider – Do you need to add coverage for your spouse, and is available?
• Child Rider – Do you need to add coverage for your children and is this option available?
• Waiver of Premium – Will your policy waive the premiums if you become disabled?
• Accelerated Death Benefit – Does your policy offer you access to the death benefit whole living, if you are diagnosed with a terminal illness?

 

How Level Term Life Insurance Works? 

A term insurance policy provides you with temporary coverage for a specific number of years. 

If you die during the term of your policy, the death benefit is paid out to the person you name as beneficiary.

If you outlive the duration of your policy term, the life insurance expires with no payout.

 

How Can I Save Money on My Term Life Policy?

 

Tips for saving money on term insurance include:

• Compare pricing from multiple insurance companies.
• Choose a shorter term for coverage.
• Lower the amount of life insurance protection.
• Choose annual premium payment option.
• Quit smoking.
• Lower your cholesterol levels.
• Lose weight if you are obese or overweight.

 

Is a Medical Exam Required?

Usually, most insurance companies may require some kind of physical or paramed exam if you are over age 30 or applying for more than $50,000 of life insurance.

However, there are life insurance companies that offer simplified issue term life insurance policies with no health examination required, just some health questions for you to answer.

And, if you qualify, you may be able to start your term life policy the same day.

 

Do I Need Life Insurance for My Spouse?

If you are married you may want to consider buying life insurance on your spouse, too. 

Whether your spouse works or not, if your spouse passed away, your family would need to pay someone to do everything your spouse does each and every day to contribute to taking care of your family and home, which could at up fast to more than $40,000 per year depending on your situation.

 

What is the Best Term Insurance Carrier?

Today there are literally hundreds of life insurance carriers in the US that offer term life coverage. 

In addition, there are several factors you can use to compare insurers, including how long in business, the financial strength rating, total assets, total liabilities, number of policyholders, quality of customer service, consumer complaints, among other things.

Each year the Insurance Information Institute offers a report on which insurers have issued the most individual life insurance policies for the previous year.

Here's a list of the best life insurance companies and their financial strength ratings from A.M. Best Company.

Many consumers consider the AM Best financial strength rating as a key indicator of the best insurers, because AM Best is one of the leading independent rating agencies that issue financial ratings for life insurers in America.

An insurer with a financial strength rating of "A" Excellent or better by AM Best is usually considered to be a safe and secure life insurance company.

 

Term Life Insurance Quotes

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

 

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