Review of Term Life Insurance Coverage
Are You Shopping for a Term Life Insurance Policy?
If so, you’ll want to learn exactly how term life works, and what are the most important things to consider when selecting your policy.
What is Term Life Insurance Protection?
It’s a type of plan that provides life insurance coverage for a set period of time up to 30 years. Most insurance carriers offer term life cover for 10, 15, 20, 25 or 30 years. The longer your term, the higher your annual cost of coverage.
How Does Term Life Work?
You select your amount of life insurance and duration of coverage. You pay the insurer a premium each month (or annually), and the insurer pays a lump sum called the death benefit to your family (beneficiary you choose) upon your death.
A term life plan lasts for a specific number of years. If you pass away during the term of your coverage, the death benefit is paid out. If you outlive the term, your life insurance expires.
Term life insurance is more affordable than you think. Get a free quote.
Who Should You Buy Term Life Insurance Coverage?
Term insurance is good for almost anyone who is on a budget, has a family, owns a home, or needs life insurance for up to 30 years.
However, if you need guaranteed lifetime life insurance you may want to consider permanent life insurance.
Why Do People Buy Term Insurance?
Many individuals and families select a term life plan to provide affordable coverage for their loved ones because term insurance is:
Term Life Insurance Annual Review
Once you’ve purchased your life insurance plan make sure you keep up-to-date on your coverage by reviewing your plan each year.
Take a look at your policy each year and make sure you have the contact information up-to-date – your address, e-mail, phone number and any name changes needed for your beneficiaries.
Also, review the length of time left on your policy and the amount of coverage provided to make sure it meets your current and future needs.
Term Life Insurance Guarantees
There are several basic term life guarantees common to most plans, including:
When your term policy ends, the insurance company owes you nothing if you are alive. The only time there is a payout made is upon the death of the insured during the term (duration) of the policy.
There are some term life policies that do offer money back, but they charge higher premiums since they will return back almost of your premiums if you outlive the term of your term life insurance policy. These plans are called "return of premium term life insurance".
How Can I Save on Term Life Insurance?
There are several ways you may save some money on your policy.
For example, you can lower your premium by quitting smoking if you smoke. Smokers pay up to 3 to 5 times more for the same amount of life insurance compared to non-smokers.
Another tip is to compare pricing among several of the best insurers as rates for coverage do vary by quite a bit between insurers.
Get Healthy – Start exercising, lower your cholesterol and lower your weight if you are heavy or considered obese.
Your premium payment option is also important. There may be a service charge added to monthly premium payments, so, if you can afford to do so choose to pay your premiums only once per year, on an annual basis.
How Much Term Life Coverage Do I Need?
One of the most important considerations when buying life insurance is how much coverage do you need?
You want to make sure you get enough coverage to properly protect your loved ones, but you don’t want to pay for more life insurance than you really need.
Life insurance isn’t one-size-fits-all. Click here to find out how much coverage you really need.
What Factors Affect The Cost of Term Insurance?
When it comes to determining the price you pay for life insurance, insurance companies consider your longevity – how long you are expected to live.
These are several factors that go into determining your longevity, including your current age, health, lifestyle, tobacco use, driving record, hobbies, occupation, family health history, etc.
In addition, the type and amount of life insurance will affect your price – the larger the amount of life insurance and the longer your term of coverage, the more you will pay.
How Much Does Term Life Insurance Cost?
Term life insurance is more affordable than you think. Some insurers offer up to $250,000 of term coverage starting from just $10 per month. Here's how you can compare the best life insurance rates from 40 of the leading life insurance companies.
Term Life Insurance Cost Calculator
Disclosure: Compensated Affiliate