What is Term Life Insurance?
Term life insurance is the least expensive type of life insurance. Coverage is provided for a specific period of time (Usually 5, 10, 15, 20, 25 or 30 years). Premiums are generally extremely affordable, allowing for the purchase of large amounts of coverage at low rates. Common uses for term life insurance include covering financial responsibilities of the insured in case of a death. The proceeds paid by the insurance policy can cover funeral costs, pay off a mortgage or provide supplemental income to replace lost wages.
How Often Do Term Life Premiums Increase?
Actually, your premiums are guaranteed not to increase for the duration of your policy. For example, if the policy is a 20-year guaranteed term plan, the rate will remain level for the entire policy, regardless of any change in health.
How Do I Determine How Much Term Coverage I Need?
The amount of coverage you need will vary depending on your particular situation. Generally, the number of people that are dependent on your income will greatly influence how much life insurance should be in effect. Other major factors that will impact the decision include the outstanding balance on a mortgage, car loan, funeral expense costs and other obligations.
Future expenses also must be considered such as anticipated education costs for your children, estate taxes, and any business expenses associated with self employment. Having an open discussion with your spouse regarding these expenses should always take place.
Although you determine how much term coverage you need, most insurance companies will only allow a specific amount of coverage, which is based on income and age guidelines.
How I Do Choose How Long I Need Coverage?
Each situation is different. Perhaps the two most important factors to be considered are the number of years left until retirement, the age of your children and your current financial situation. As an example, if your youngest child is nine years old, you may wish to consider a 15-year term policy that will provide coverage until they have completed college. Naturally, if your youngest child is 15 years old, a 10-year term policy might be more appropriate.
How Do Your Life Insurance Rates Compare To Other Prices I See Online?
The quoted rates that you see on our website are guaranteed to be the lowest allowable rate available for your particular rate class from each life insurance company. Of course, the final determination of your rate is made by an “underwriter” of the company that you apply with. Once the policy is approved and the rate is established, you may either accept or reject the offer.
Do I Need To Take a Physical To Get Term Life Coverage?
To qualify for the better rates, often an at-home exam is required. However, it is much less invasive and less time-consuming than a regular physical. The insurance company also pays the full cost of the exam and you are not under any obligation to accept the insurance offer.
How Long Does It Take To Approve A Policy?
There are many factors that can affect the process. Generally, a policy can be approved within 14-28 days. However, if additional medical information is required, the process could take longer.
