A convenient and affordable way to provide life insurance coverage for your loved ones is with a term insurance policy. It’s called term insurance because you buy it for a specific period of time, or term, such as ten years.
That policy provides a certain amount of coverage in exchange for payments every 30, 90 or 365 days. While the concept is pretty straightforward, to get the best term insurance rate, follow these easy tips when purchasing term life insurance.
1. Be certain you’re buying a fixed premium policy. While the majority of term life insurance policies are fixed, some policies start off with a low premium for three or four years but then switch to a higher rate. One warning signal would be a suspiciously low premium when compared to other companies. If that’s the case, ask whether or not the premium is fixed.
2. Buy a policy that is guaranteed to be renewable. When you reach the end of your original term, you want to be sure you can renew the policy. Some companies may require a new policy or a physical exam at that point. Avoid any policy that doesn’t guarantee renewal.
3. Watch out for policies that offer extra for accidental death or certain types of death. These policies cost more than comparable policies that don’t offer the double indemnity clause. Plus, if you’d like your family to have twice as much insurance coverage, buy twice as much up front. Then they’ll get exactly what you had planned.
4. Take your time and window shop for your term life insurance policy. You can find deals almost anywhere you look these days, from billboards to TV ads to your computer. Of all the places to find the best term life insurance deal, the internet has to be number one. You can shop until you drop. Within a very short time, you can compare the rates and benefits of different plans, from mortgage to level term life insurance from a few companies. After that, the choice is up to you.
5. Check into the company before you buy your policy. Read user forums or other online reviews by customers and independent rating agencies. You’ll get a good idea of how a company transacts business.
There has never been more competition for your term life insurance dollar. By comparing and following the above tips, you’ll find the best deal for the term life insurance policy you need.