Term Life Insurance - Things to Know

Many families consider purchasing term life insurance as protection for their families. The main income earners of the family usually want to ensure that if anything happens, that those dependent upon their income will not be left in a sinking ship. The main purpose of a life insurance policy is to cover any unfunded liabilities.

Statistics show that the average family has debt and expenses, but less than 30% of families purchase a life insurance policy. With a term life insurance policy that will cover your debts and several years of living expenses you ensure that your family is not left in an immediate bind if a tragic event occurs. In other words, you keep your family from having to scramble and make irrational decisions that may not be made if they had a strong financial base.

Term Life Insurance - Things to Know

Before we give you get a few tips for comparing life insurance policies. Understand that term life insurance, whole life insurance and universal life insurance are the most popular types of life insurance. These three types of coverage are all different. If you are looking for a policy to cover outstanding liabilities or provided for short term protection if a tragic event where to occur you need to look at the term policy.

  1. Term Coverage - it covers terms 10, 15, 20, 25, 30 years. In other words, it is not built to last you whole life but for a specific time frame. Ex: a 30 year term is great to cover something like the mortgage, kids getting out of school, or other longer term commitments that you don't want those you are leaving behind to have to consider.
  2. Compare Rates - when you are looking to purchase coverage make sure to compare rates with numerous carriers. Similar to Medicare Supplement Insurance basic benefits are the same and comparing insurance plans is highly recommended. There is no need to pay $300 per year for a 15 year term policy with Lincoln Financial when you can pay $200 per year for a 15 year term with Genworth.

How to Compare Life Insurance Rates

If you are looking to compare Life Insurance Rates remember, as mentioned above, don't look at just one carrier. Use many insurance companies to compare life insurance coverage. There are some websites that have a 1 page basic health analyzer prior to getting a quote which is the most effective way of comparing insurance premiums.

It doesn't matter if you get a rate of "preferred plus" if you are 5'00'' and 400lbs - you will not be a preferred plus rating. Completing a health analyzer provides accurate quotes up front so you do not get 90% through the process to find out your rate has doubled.

To compare life insurance rates with a health analyzer - CLICK HERE

Here is a view of what insurance quotes will look like through the Life Insurance Quoter that offers a health analyzer.

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