Life insurance provides for loved ones if you die while the insurance is in force. Term life insurance is typically less expensive than a whole life policy but only pays a death benefit to the beneficiary if you die within the policy term. Not all term policies are alike. Compare term life insurance quotes by premium costs, renewability, coverage, and policy length to determine your best value. If you’re unsure, ask a financial advisor about the right kind of life insurance for your needs.
Consumers are buying larger life insurance policies directly from insurers. According to trade group ACLI (American Council of Life Insurers), individual consumers directly purchased almost USD 2 trillion in face value of coverage last year. Most life insurance policies are purchased through an employer’s benefit plan or as part of a business’ risk management plan.
Compare Life Insurance Quotes
Start your comparison of life insurance quotes by knowing the kind of life insurance you need. Approximately 80 million U.S. families pay for life insurance but some of them may be investing in the wrong type. Almost 67 percent of policies written are considered endowment or whole life insurance policies. These policies combine the death benefit which pays money to your beneficiary if you die with an investment or savings mechanism.
Since whole life insurance policies are frequently more costly than term life policies that provide only death benefits, many financial advisors believe that whole life is an inefficient savings vehicle. Then take these steps to compare life insurance quotes.
Life Insurance Quotes: Length of Coverage
Start by knowing how long you need term life insurance:
- If you’re fully prepared for a 20 to 30 year retirement and your youngest child graduates university in three years, you might consider investing in assets with a higher rate of return after your son or daughter leaves the nest.
- You may decide to keep term life insurance because it is a low cost and potentially high return financial product.
- If you’re a young married person with a baby and a two-year-old, consider term life insurance for a longer period. If you’re the primary breadwinner, you may need to increase your life insurance. Ask for a new life insurance quote before making a major life change, such as buying a new (or larger) home, the birth of a new child, or starting a business.
Life Insurance Quotes: Coverage Amount
Consider how much life insurance you need. For instance, if a mortgage loan is your family’s primary financial obligation, the face value of your policy should be sufficient to repay it.
There is no one-size-fits-all answer to the question of how much life insurance you should have. If your beneficiary and survivors must replace the income you provided to pay for the needs of daily life, children’s education, or retirement, you may need more life insurance coverage.
Before comparing life insurance quotes, know if existing policies are renewable without a doctor’s exam. If you’re ill, some life insurance companies will consider you uninsurable.
Life Insurance Quotes: Fixed or Rising Premiums
Life insurance premium cost is important to everyone, but saving money on premiums for a year or two may not make sense for you in the long run. Request multiple life insurance policy quotes and compare them:
- Decide which life insurance policy meets your coverage and duration requirements at the lowest premium cost.
- Compare life insurance quotes on an apples-to-apples basis. If your term policy offers fixed premiums, it may be more expensive today than a life insurance policy whose rates increase as you age. If you’re planning to maintain the policy for many years, a policy that maintains low premium rates is an important consideration.
Life Insurance Quotes: Term Rider
Term riders are a common type of addition to term insurance policies. Selecting a life insurance policy or combination insurance package with the best combination of elements requires some investigation. You must know the options available to you and how these options differ between major life insurance companies or contracts.
In theory, life insurance policy riders are intended to offer flexibility to the insured. Since not all insurance companies offer the same choices or offer limiting features to life insurance riders, it’s important to consider riders with care.
The advantage of a term rider to your life insurance policy is simple:
- If you decide to add coverage to your policy, the insurer promises to issue it on a net cost basis without the addition of new issuance fees.
- The largest life insurance companies differ in the coverage length and coverage period permitted by a term rider.
Get Life Insurance Quotes
Most consumers in search of life insurance have busy lives and the idea of spending hours of research to compare life insurance quotes seems like a daunting task.
Fortunately, many life insurance companies, such as American General Life Insurance, Primerica Life Insurance, and Prudential Life insurance offer quick life insurance quotes. If you’re already a State Farm Insurance customer, get a State Farm insurance quote online or from your agent.