The rates of term life insurance are based on the age of the insured person over the term of the policy and the face amount or death benefit of the policy. Other factors, called risk factors, are also taken into account. Risk factors include a family history of diseases with a genetic link, high risk occupations, smoking or chronic health conditions like diabetes. The more risk factors an individual has, the higher his insurance rates will be. There are ways that most consumers can find an affordable term life insurance quote.
When choosing a life insurance policy, all consumers should compare quotes online from different life insurance companies. However, price should not be the only consideration. Consumers should compare the provisions of policies offered by different carriers and the reputation of the companies themselves to find the right life insurance policy.
Choosing A Great Policy
Some term life insurance policies allow policyholders to renew the policy at the end of the term without reapplying for insurance or undergoing another medical exam. Other policies allow insured persons to convert a term life insurance policy to a permanent whole life insurance policy. There are also policies that give the insured the opportunity to alter the amount of the death benefit and premiums. Consumers should compare term life insurance options to find the best policy for their personal needs.
Compare Insurance Companies
Consumer websites like AM Best and JD Powers offer rankings for major insurance companies based on a number of criteria including financial stability and customer service. While it may be more difficult to get information about smaller state or regional insurance companies, the state insurance department and BBB can provide information for any companies selling insurance in the state. Consumers can also request a company prospectus for information on financial stability.
Mutual and Stock Insurance Companies
The day to day operations of stock and mutual companies are almost identical, but mutual companies are owned by their policyholders and stock companies are privately held corporations. Mutual companies may pay owners of certain types of life insurance policies dividends when the company makes a profit. Stock companies pay dividends to stockholders who each own a piece of the company. There are excellent mutual and stock insurance companies but some individuals prefer one type of company over the other.
Getting Free Life Insurance Quotes
Many insurance websites offer free, instant life insurance quotes online from multiple insurance companies so consumers can compare rates, policies, and coverage. To get an instant quote the consumer simply completes a short form with rating information like gender, age, occupation and health and he or she receives the quotes in less than a minute. Since there is no limit on the number of quotes requested, consumers can also compare the cost of different policy options.
Buying Life Insurance Online
Once consumers have had an opportunity to compare term life insurance policies, companies and prices and made a decision on the best policy for their needs, they can purchase the insurance online. Some policies will require that the insured person have a medical exam before the policy is issued, but the rest of the application process can be completed from the comfort of home. It is often less expensive to purchase life insurance online since there is no agent commission which can add to the cost of monthly premiums.
Term Life Insurance Is The Most Popular
A term life insurance policy is the least expensive form of life insurance available. It provides financial protection for dependents, businesses or lenders with an interest in the insured person’s income. The terms and conditions of term life insurance policies may vary between life insurance companies and policies although the basic provisions of the policy remain the same.
To get the best value for their life insurance premiums, consumers should take the time to compare term life insurance options, companies and rates. It only takes a little time to find a top quality policy at a very affordable price.
Good article Jon! I went with a 30 yr term life insurance after buying a home that was 20% higher than my mortgage. I did this so I wouldn’t leave any debt behind should something happen to me. An important thing I learned is that as you get older the cost goes up because they factor in age, health status and risky activities. Just something to keep in mind for those thinking of putting it off.
The positive thing about term life insurance coverage is you can pick a plan and hang a particular time on when and just how much you need to invest in your rates to understand your family’s needs. A term life insurance coverage could be bought at 5 to 3 decades. Dying benefits may begin from around $10,000.This will make the insurance policy affordable for your family and private needs.