How to Shop for Term Insurance
With the advent of the Internet there are really no more excuses for getting the most essential protection your family needs life insurance on your life. Many people know they need it but they avoid it because they can’t stand the thought of talking with a life insurance agent for fear of being sold something they don’t want or need.
Now it’s possible to find the coverage you need with only minimal contact with an insurance company. When you use online insurance quoting services, such as Insure.com or AccuQuote.com, you can have access to a complete database of term life insurance offerings where you can compare quotes and other features. Term is straight life insurance so, unless you plan to add options or riders, it’s a straight across price comparison. Before going online it would be very important to know the answers to some questions about your particular situation:
- How much coverage do you really need. You can apply some basic formulas such as 10 times your income, but it’s recommended that you more carefully assess your needs by doing a life insurance needs analysis also available online (just Google it).
- How is your health? If you are in good health and you don’t have a history of medical problems, you should expect to qualify for preferred rates. It is recommended that you compare quotes based on standard health ratings as that is more apples-to-apples for insurance quotes. Then, if you do qualify for a preferred rating, you will be coming out ahead.
- What is your budget? Term life insurance only stays in force as long as you pay the premium each month, so it is important to ensure that your cash flow allows for it. And, don’t skimp. If your situation calls for $500,000 of coverage, don’t settle for $400,000 just because it would mean giving up an extra dinner out each month. There’s too much at stake for you and your family.