How to get the best term life insurance rates
Term life insurance is a type of life insurance that provides coverage for a certain period.
Your premiums will remain fixed until your policy expires, and if you die while the policy is still active, your family will receive benefits.
When purchasing term life insurance, you want to secure the best rates possible.
Although securing the best term life insurance rate shouldn’t be difficult, there are some key points that you should know.
Let’s take a look….
How Term Life Insurance Works
A term life insurance policy normally ranges from one to 30 years. If you die before your policy expires, your family will receive your death benefits.
Insurance premiums for term life insurance are cheaper than permanent life insurance premiums.
When your policy expires, you normally have the option to renew your policy, but your premiums might increase.
Decide what type of Insurance you want
When purchasing term life insurance, you will have four main options to consider:
- Renewable Term: This type of policy expires after a certain number of years. The term of the policy is normally from one to five years, and it is easy to renew your policy. Depending on your age and health, your premiums might increase each time you renew your policy.
- Level Term: This type of insurance offers fixed premiums for up to 30 years. Some policies might expire when you turn 65 years of age.
- Convertible Term: With this policy, you have the option to convert your benefits into cash.
- Return of Premium: This type of policy will give you back the amount of money you paid in premiums,
Compare Companies
Life insurance companies are becoming more competitive, so you should compare rates and companies. Companies stay in business by selling policies, so they want to do everything possible to secure your business. You need to go online and ask several companies to give you quotes. You will need to provide information about your medical history, and you will be asked if you drink or smoke. It is important to be honest when answering the questions.
Get a Medical Exam
Your rates will be lower if you are in good health. It might be a good idea to get a medical exam before you apply for a policy. If you have proof that you are not at risk of getting sick, you can obtain quotes quicker, and your rates will be lower. Your rates will be higher if you have a family history of medical problems. If you have lost a loved one to certain diseases, an insurance company might increase your rates; therefore, regular medical exams might prove you are not at risk of getting sick.
Manage your Health
Before you apply for a policy, it is important to get your health under control. Make sure your cholesterol levels are acceptable, and make sure your blood pressure is controlled. You need to quit smoking and quit using tobacco, and you need to control your weight. You could also consider enrolling in an exercise program. If your health is good, your premiums will be cheaper.
Get Coverage Early
If you take out a policy when you are young, your premiums will be less expensive. You do not ever want to think about dying at a young age; however, you must be prepared in case the unthinkable occurs.
Review Your Policy
Before you purchase a policy, you need to look over the documents to make sure they are accurate. You need to make sure everything is what you want, and you need to review the coverage details.
Pay your Premiums Annually
You can obtain lower term life insurance rates by paying your premiums once a year. Most insurance companies will allow you to pay monthly, quarterly or bi-annually; however, your payments might be lower if you only pay annually.
Your future can be secured by purchasing term life insurance, and obtaining the best rates is very important. Without proper life insurance coverage, your family could be stuck with huge bills after your death. Therefore, find the best rates available, and you can have peace of mind that your beneficiaries will be protected financially in the event of your death.
This article: Term Life Insurance Rates is written by Jeff Rose CFP on his blog about