How to Compare Term Life Insurance

Face it, browsing term life insurance quotes is not your dream of a perfect weekend. Considering your death and how your family would suffer are no way to relax. There’s the added disappointment of another financial need you assume you cannot afford.

So, like 30 percent of households, you skip buying life insurance. The above are actual reasons people opt out from purchasing term life altogether.

Not buying life insurance might be the most expensive proposition for your family, however. They would go from a decent life to focusing on getting work and scrounging for food instead of getting an education and job skills.

Not having a backup plan such as term life insurance may toss your family into the poverty cycle. Not easy to survive and difficult from which to emerge.

Be sure to utilize the FREE comparison tool at the top of this page!

Understand Term Life Insurance

Term life insurance is different from the annuity-class of products. Term life is the least expensive of all the products. It pays out the policy’s face value as a tax free death benefit.

If you endure the rigors of the questionnaires and medical tests and are healthy, you stand to save even more money on your insurance.

Those who have health issues may be better off with general acceptance term life products. That simply means that you would not have to show medical records, take blood tests, and fill out health questionnaires.

If you purchase while you are young and healthy, life insurance is at its cheapest rates. When you start a family, limiting dangerous hobbies and occupations could save you a bundle on term life insurance.

If your job is a lucrative income source, make sure you buy a good deal of insurance to counter the likelihood you could get harmed or killed on the job.

Even the middle-aged-first-time parents have a slew of affordable term life options.

The operative is the word term. It refers to the amount of time your policy will be in effect.

Terms start at five years and go up to 30 years, starting from the time you buy.

Buying the Benefits You Need

The statistics are sad and frightening for any parents buying coverage for their dependents. Most policyholders feel they need more insurance than they are able to afford. Most families have two-income earners, while 40 percent are single, female-headed households.

1. Determine how much income you need for your dependents if you were erased from their lives tomorrow.
2. If you need help paying for funerals and mortgages, use life insurance death benefits, not specialized and often over-priced and separate mortgage payoff insurance or funeral products.
3. Include at all of your sources of income and investment to determine your actual money. Child support, military benefits, cash, retirement savings, and workplace life insurance policies.
4. Buy insurance for term periods you can afford

Now you are ready to make some calculations. Look at how long each of your kids has until they reach age 18. That’s how long you need to buy insurance, at the minimum. If your spouse is going to return to work once the kids are five, but right now is staying home with them, factor that into the equation.

The beauty of life insurance quotes is that you can run through many variations of your financial situation for free. Find out if it is cheaper to buy a five-year term policy now or a 10-year term. Do any of the insurers offer the option to extend the term when your policy is about to expire?

Overcoming the Fear Factor

Fear of dying, facing the prospect of death, and paying for life insurance are all the makings of night terrors. Instead of being like the deer caught in headlights, embrace that all you can control is buying life insurance.

If you are concerned about not being able to afford your insurance and have an upside down situation, or can no longer afford a policy, know there are life settlement groups. It is not the same as the sexy, high-powered Wall Street facade of fiction.

Rather, a real option for any life insurance benefactor who faces cancellation or life changes that make a life insurance policy a bad deal for them.

Another thought that lurks in people’s minds scares them into believing their insurer will not have the money to pay out death benefits.

Basically, look for carriers who have a solid credit record. Weiss Ratings is a privately held firm that provides corporate credit ratings. Look for long-standing companies that have financial stability to ensure insurers have the money to pay out on claims.

Comparing Policies

It is not a process that is for the feint of heart, even given the online quote systems. Many insurers will call and email once you put in a quote. They will all seem to have very different systems in place, which can make the whole process more involved.

Take control by keeping a wishlist and needs list posted where you can see it. Compare against that list anytime you are reviewing potential policies from different insurance companies. It will keep you on target for getting the policy you need at the most competitive price from a reliable insurance carrier.

In addition, keep a notebook, or a file on your computer to stay organized. The process can take a few weeks, and a journal is a useful tool to recall who you spoke to when. It also sets straight term life benefits and policy rates.

It is wise to buy both from an employer and on your own. Many employers continue to provide some degree of life insurance at either a deep discount or as a full benefit. Though if you lose your job, you lose your death benefit, in most cases. Additionally, you may be limited by the amount of insurance you can buy through the workplace.

To recap, face your fears and get through the big inconvenience of shopping for life insurance. Your family is counting on you in life and in death. Make strides by keeping a list of your wishes with you while shopping for your term life coverage. It will keep you on track.

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