Tag Archives: Term
How To Find Discount Term Life Insurance
How To Find Discount Term Life Insurance
Thanks to insurance companies able to do all or most business online, finding and buying discount term life insurance can be quite convenient.
First, find an online insurance broker, or website with a large database of life insurance companies that provide term life insurance. The best ways to do this is to visit your favorite search engine, query “discount term life insurance,” and choose from among the top few search results. The results are located at the top because they contain the most relevant information to your search – they specialize in locating life insurance companies that provide discount term life insurance.
Then, complete the application provided by the website. This application usually contains questions about yourself such as your age, gender, height, and weight as well as questions about your medical history and the medical history of your family. Remember, just because your medical history may not be stellar, you can still get discount term life insurance. Do not lie on your application – it only voids your term life insurance policy down the road.
Next, submit your application and wait for the multiple discount term life insurance quotes you’ll receive – which should be almost instantly. Don’t be overwhelmed by the number of results or the decision-making process in general. Just compare the companies, policies, and quotes and make note of those that interest you most. Now is also a good time to jot down any questions about any of the discount term life insurance policies that interest you most.
Finally, contact live agents from the life insurance companies in which you’re interested. Sure, your online search for discount term life insurance gave you some helpful information, but the live insurance agent can further explain the policy and answer any questions you may have. Once you’ve decided on which discount term life insurance provides the coverage, price, and terms and conditions you want, your agent will help you complete the transaction.
Common Mistakes To Avoid When Purchasing Term Life Insurance
Common Mistakes To Avoid When Purchasing Term Life Insurance
When purchasing term life insurance, there are a number of factors to consider. Consumers should make certain they understand the concept of term life insurance and make purchases accordingly. Here are a few of the most common mistake people make when buying term life insurance policies:
1. Buying a term life insurance policy because it is inexpensive. While the price may be cheap, you must make sure that the policy will meet your life insurance needs.
2. Failing to realize that term life insurance is temporary. A term life insurance policy will only be in effect for a set period of time. After that time expires you will need to renew, and if your health has deteriorated in that time it may be very difficult for you to obtain another policy.
3. Purchasing life insurance from an unknown or unstable insurance company. If the insurance company you choose does not have at least an A rating, walk away and look elsewhere.
4. Buying life insurance from an over-anxious agent. If the agent does not take the time to ask questions and understand your needs, end the conversation immediately and find a different agent.
5. Failing to review your policy on a regular basis. Changes in your life, your employment, and your finances can affect your life insurance needs. Take the time to analyze your situation from time to time to determine if your insurance needs have changed.
Term Life Insurance Vs Permanent
Term Life Insurance Vs Permanent
Ever since the idea of term life insurance came to the mind of man term life insurance vs permanent has been the center of active and thought provoking debate. Term insurance is without question cheaper than permanent life insurance but when compared with the value built into the latter people have varying ideas as to which is best. What about the cash values and dividends you get from permanent policies? Do you just ignore these? How can cash values and dividends be used to offset cost? Questions worth answering aren’t they?
The ever constant innovation of life insurance policies make it more and more difficult to come to a consensus. Term life insurance vs permanent will continue to provoke the thoughts of anyone considering a life insurance purchase. Because term is simplest I will discuss that one first then I will get to the complexities of permanent life insurance and it’s varying alternatives.
The Advantages Of Term Life Insurance
What life insurance companies have attempted to do with term life insurance, and have been fairly successful at doing it, is to strip the life insurance policy of as much of the front end load as possible. They have been more successful in doing this with some policies than with others. Let us take the increasing premium term policy for example. The lower premiums in the younger years result from the fact that the applicant is less likely to die within a given period, the term period, than an older person. Term life insurance is life insurance in it’s simplest form taking into consideration mortality based on actual experience.
If we were to examine a decreasing term life insurance policy the decreasing annual premium reflects the decrease in the death benefit each year, also bearing in mind the fact that the insured is getting older each year. People like the way this is done because they believe that at no time they are paying more than for the term life insurance they actually want.
Advantages Of Whole Life Insurance
Comparing term life insurance vs permanent we notice that the whole life insurance premium is loaded up front. The life insurance company take most of the cost to issue a whole life policy in the first few years. There are clerical costs, medical costs if the policy is large enough or if they are dealing with an impaired risk, and of course agents commissions etc. If the costs are less than anticipated, and they usually are, they return that portion of unused premium. This is called a cash value. This cash value earn dividends which, if left with the company, accumulate interest. There are alternate dividend options that you may elect.
If you were to deduct the cash value of a life insurance policy plus the dividend after 20 years from the amount you paid in premiums you would see that the policy cost nothing over that period. But, hold on. We have to consider what those dollars, over and above the cost of term life insurance, would have been doing had they not been in the whole life policy. What rate of interest would be available.
The advocates of buying term when examining term life insurance vs permanent contend that the money would be earning the maximum over that 20 year period. On the other hand, the advocates for permanent life insurance assume that the extra premium would not be saved or invested. There is truth in both arguments but, because each person is different, we cannot come to a definite conclusion as to which is best. If you can afford to buy any policy you choose , do your comparisons for yourself and go with your gut.
How To Select Affordable Term Life Insurance
How To Select Affordable Term Life Insurance
Affordable term life insurance is ideal for most individuals. While it’s true that whole life insurance covers you for your entire life and provides a savings component, most Americans aren’t looking for those benefits. With term life insurance, there are no extra costs for benefits you don’t want or need, i.e. savings components, and with no extra costs you pay less. Term life insurance is cheaper and gets to the point. It provides financial benefits to your beneficiaries in the event of you death. Period.
However, there are certain factors you should look out for when selecting affordable term life insurance. Those factors are as follows:
Buy early. The earlier you select an affordable term life insurance policy, the more affordable it the policy will be. Life insurance companies are more apt to offer affordable insurance premiums to younger people because they are less risky to insure.
Make sure the term life insurance policy offer guaranteed renewals. When it’s time to renew your affordable term life insurance policy, you can actually be denied or forced to pay higher premiums than before. Insurance companies implement these policies because, well, you’re getting on in years and becoming more of a risk to insure. While you can’t always get around paying the higher premiums, you can get around being denied. Simply select a life insurance company that guarantees renewal. This way, you won’t have to begin the search process all over again, thus you won’t risk paying even higher premiums than you would if you renewed, or not finding life insurance coverage at all.
Look for premium discounts. Purchasing a lower amount of term life insurance coverage doesn’t always mean you’ll pay lower premiums. Sometimes life insurance companies offer premium discounts if you purchase a higher amount of coverage. So, you may actually be able to get more affordable term life insurance if you purchase 0,000 than you would if you purchase 0,000.
Term Life Insurance. What Is It All About?
Term Life Insurance. What Is It All About?
What is term life insurance? You have an interest in buying term life insurance, that is why you are reading this article, and you want to know how it really works. Right? Well, there are many types of term life insurance and I am going to give you a brief explanation as to how each one works.
Decreasing Term Life Insurance
Decreasing term life insurance is very popular with home owners and mortgage companies. The homeowners want to know that the mortgage is paid off if they should prematurely die, and the mortgage company want to be assured that they are repaid the money loaned to the homeowner. The face amount of these policies decrease in a uniformed manner each year as the balance owed on the mortgage decreases, and the premium remains level. This is very inexpensive life insurance.
Increasing Premium Term Life Insurance
This is initially the cheapest term life insurance you can buy. The death benefit remains level for the duration, however, the premiums increase every year and as a result this may turn out to be the most expensive term life insurance you can buy. If you should purchase this policy it would be wise to convert to a level plan as quickly as possible.
5 Year Level Term Insurance
The face amount of this policy remains level for the entire 5 year period and so does the premium. Upon death the face amount is paid either in one lump sum or in the form of an income. If you have a short term need for life insurance, like covering a bank loan, then this may be the plan for you.
10 Year Term Life Insurance
Like the 5 year term life insurance policy, the ten year term life policy can be used to cover a bank loan, but it can do considerably more. It can be used for family protection and a myriad of other needs. The face amount of the policy remains level for the duration and so does the premium. Some companies allow you to continue the policy after 10 years with an increase in premium.
20 Year Term Life Insurance
The 20 year term life insurance policy is probably the most popular of term life policies. The death benefit remains level for the duration and in some cases so does the premium. With some companies, however, the premiums increase after the first 10 years to reflect the cost of the additional risk to which the insurance company is exposed as the insured gets older. All in all, the 20 tear term life insurance policy is fairly inexpensive and does the job it is intended to do.
Unlike whole life insurance, universal life insurance or variable life insurance, term life insurance does not have cash values or earn dividends. There is a fairly new type of term life insurance policy, however, called a return of premium policy which returns all your premiums at the end of the term period, if you do not die. The premiums are so high it may not be worth your while to buy this type of term policy.