Do You Need Term Life Insurance Advice?
If you’re shopping for life insurance and considering term life coverage there are several things you may want to learn about before choosing your plan.
Choosing a Life Insurance Policy
When it comes to choosing your life insurance plan there are two basic types to choose from: Term and Permanent.
Term life is short-term coverage for a period of up to 30 years.
Permanent life insurance costs a lot more and lasts your entire lifetime.
How Much Life Insurance to Buy?
One of the first things to consider is how much life insurance to buy. You’ll want to take into consideration your income, debt, assets, and plans for the future; such as, buying a home, starting a family, putting your kids through college, etc.
Although many experts may suggest you purchase 10-20 times your annual income in life insurance, the easiest way to quickly and accurately determine your life insurance needs is to use a life insurance needs calculator.
How Long Do I Need Life Insurance?
Another question to ask yourself is how long do I need life insurance?
Term life offers coverage options of 10, 15, 20, 25 and 30 years. The longer the "term", the higher the cost of your life insurance.
When to Buy Life Insurance?
Many of us wait until a major life event happens to actually start considering the purchase of a life insurance policy.
Whether it’s getting married, expecting your first child, getting a promotion at work, buying a home, or the passing of a loved one – major life events alert us to the need for life insurance.
Just keep in mind, the younger and healthier you are when you buy your policy, the lower your annual cost of life insurance coverage.
And, you’ll have the peace of mind knowing you have the protection you need, instead of waiting until later when your health may have changed and you may end up paying much more for the coverage you need, if you can even qualify to get insured at that time.
Types of Term Life Insurance
There are a few different types of term life plans available, including:
Level Term – The most popular type of term life insurance is level term. It has premiums that stay the same each year for the entire duration of your policy, and your amount of coverage stays the same, too.
Decreasing Term – You pay the same amount of premium each year, but the amount of life insurance decreases each year.
Annual Renewable Term – The lowest priced term life coverage, but if you renew your policy at the end of the one-year term, your premium increases. So, each year you renew your coverage, the price you pay for your life insurance goes up.
Key Term Life Insurance Terms You Should Know
Renewal Provision – Clause in a life insurance policy that permits the insured to renew the term life policy for another term without having to take a medical examination, regardless of his or her physical condition; the premium cannot be increased to reflect any adverse medical condition.
Conversion Privilege – Term life coverage that can be converted to permanent insurance regardless of an insured’s physical condition and without a medical examination. The insured person cannot be denied coverage or charged an extra premium due to any health problems.
How to Get the Best Rate for Term Life Insurance?
There are several tips to follow to get the best price on your term policy.
Compare Multiple Price Quotes – By comparing prices from several insurers you’ll find the one that offers the most affordable plan.
Stop Smoking – If you smoke, quit smoking, Smokers pay up to 2 to 3 times more for the same amount of life insurance coverage compared to non-smokers.
Lower Your Cholesterol – If you have high cholesterol change your eating habits and consider a prescription to improve your cholesterol levels.
Improve Your Health – Start exercising to improve your overall health if you don’t already exercise.
Lose Weight – If you’re overweight or obese, you will pay a higher premium compared to someone who is of average weight for their height.
Annual Premium Payments – You’ll have several premium payment options available when you purchase your life insurance. Usually, there’s a price break for paying premiums once per year (annually), instead of monthly, since there’s less work on the insurer’s end to process the fewer payments.
Get Insured Now – The younger you are when you buy your life insurance, the lower the price you pay, since you’ll have a longer life expectancy compared to people who are older when they purchase their coverage.
What Factors Affect the Price of a Term Life Policy?
There are several factors that impact the price you pay for term insurance.
The type and amount of insurance will affect your premiums.
In addition, your personal risk factors will be weighed in determining your cost of coverage. Risk factors are variables that play a role in your life expectancy – how long you are expected to live.
Some of the most common risk factors for life insurance include your age, gender, lifestyle, tobacco use, height-to-weight ratio, occupation, hobbies, driving record, health, and your family’s health history, among other things.
How Much Does Term Life Insurance Cost?
The cost of a term policy can vary from around $10 per month to over $1,000 per year depending on:
Can I Buy Term Life Insurance Online?
Yes, you may purchase life insurance online. There are insurers who offer the option of comparing prices and applying direct online for your policy.
And, if you qualify, you may be able to start your life insurance policy today.
Do I Have to Take a Medical Exam to Get Term Life Coverage?
Most insurance carriers require you to take a paramedical exam that they pay for and send the paramedical examiner to your home or office to perform the exam and ask some health questions.
However, some insurers offer instant approval life insurance without any health exams required, just a few health questions for you to answer.
What are the Top Term Life Insurance Companies?
There are hundreds of insurance companies in America that offer term insurance plans. Each of these insurers has a financial strength rating issued by the independent rating agencies such as, AM Best.
The highest ratings for financial strength are A++ Superior from AM Best Company.
Some of the highest rated term life carriers include Northwestern Mutual, New York Life, Metlife and Prudential, among others. Here is a list of top term life insurance carriers.
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
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.
Term Life Insurance Resources