How to Shop for Term Life Insurance Quotes
Shopping for term life insurance quotes is a stressful process for most people. You must wade through the typical choices of any insurance policy against the backdrop of trying to guarantee the well-being of your family in the most tragic of circumstances. And, despite the fact that term life insurance is the most cost-effective way to protect your loved ones, trying to figure out if you need 10, 20, or 30 years of coverage adds extra uncertainty to the process. So, here's what you need to know to shop for term life insurance quotes quickly and responsibly so as to make sure you find affordable insurance and reliable protection for your loved ones.
Common Choices for Term Life Insurance Quotes
As you begin discussing policy options with your life insurance company, you'll hash out typical policy choices including payouts and coverage limits, term length, and under what conditions the policy will be paid out. Certain chronic illnesses and disabilities may be included in some term life policies and excluded in others. But in addition to these common data points, you'll likely want to consider these structural choices for your term life insurance quotes.
- Annual Renewable vs. Level Term Life Insurance: With annual renewable term life insurance, you must renew your policy each year and premiums will go up as your likelihood of death goes up. Level term life insurance sets a term length and averages the insurance risk across the entire term, allowing your premiums to stay constant year after year.
- Constant vs. Decreasing Term Life Insurance: If you expect your annual savings to eventually eliminate the need for life insurance, you may want to opt for decreasing term life insurance in which promised benefits decrease year after year and should parallel the decreasing need for financial protection. Premiums may go up or down, depending on how decreasing needs compensate for the increasing risk of death.
- End of Term Options: Perhaps the biggest danger when purchasing term life insurance is not having a plan once the insurance term expires. Some term life policies include an automatic renewal option, an important safeguard if you're diagnosed with a terminal illness but live beyond the term length. Some plans also give you the option of converting your term life insurance to a permanent or whole life insurance policy. Unless you're sure you'll be financially independent at the end of your life insurance term, you need to include a back-up plan into your life insurance policy.
Shop Online for Term Life Insurance Quotes
More and more, insurance is becoming an online industry, and the big reason is simple: It dramatically reduces the cost of finding and enrolling customers. Without an online referral service, insurance companies must rely heavily on commission-based salesman to attract new customers. These commissions can eat up 10-20% of your premiums at the very beginning of the policy term. And because life insurance uses these salesman more than most sectors of the insurance industry, shopping online for this life insurance holds the potential for greater cost savings and/or better insurance benefits. Fill out a brief online form here at NetQuote, and life insurance companies will contact you with term life insurance quotes, policy descriptions, and general information. Don't dismiss the benefit of carefully considering your options from the comfort of your own home, either.