Are you thinking about life insurance but feel like you are drowning in a sea of options? It’s time to understand life insurance quotes as this article will explain in details all you need to know.

What is Term Life Insurance

Term Life Insurance is an insurance that covers you for a specific period or term. It could be 10, 20 or 30 years, if you pass away during this term, your beneficiaries receive a payout. If you outlive the term, which we hope you do, the coverage ends. Moreover, you are always covered during the term.

Why Should I Choose Term Life Insurance

Term Life Insurance will make a great choice for you, if you have people who depend on your income because it can provide a financial safety for them if something happens to you.

When Does Term Life Insurance Makes Sense

Term Life Insurance makes a lot of sense under situations like;

1. You are a new parent
2. You just bough a home
3. You are the primary breadwinner in your family
4. You have significant debts you don’t want to pass on to your loved ones

You should remember, the goal of term life insurance is to replace your income and cover your financial obligations if you are not around to do so.

How much Coverage Do I need

The simple rule is, aim for 10-15 times your annual income. So, if you are making $50,000 a year, then you might want to look at policies that are within $500,000 – $750,000 a year.

As everyone’s situation is unique. Consider;

1. Your current income
2. Your debts (mortgage, car loans, credit cards)
3. Your future expenses
4. Your Family’s living expenses

This might really seem overwhelming but many insurance providers have online calculators that can help you figure this out. Life term insurance quotes allows you to adjust the coverage amount and see how it affects your premiums. Therefore, when getting this quotes take a thorough look.

Factors that Affect Term Life Insurance Quotes

There are several factors that can affect your term life insurance quotes and here are those factors:

1. Age: The younger you are, the lower your premiums are for the term life insurance quotes. This is why it is not advisable to procrastinate.
2. Health: Your health conditions affects your life insurance quotes greatly. The healthier you are, the better your rates.
3. Smoking Status: If you are a non-smoker, you are sure to pay lower premiums. Hence the reason you should quit smoking as soon as possible.
4. Gender: Women are often considered to have longer average lifespans, that’s why they pay less than men.
5. Occupation: Your kind of job has a great impact on your life insurance quotes. If you are doing  a high risky job, then it will affect your rates.
6. Hobbies: Just as risky jobs affects your rates, risky adventures like skydiving will bump up your premiums a bit.

Always keep these factors in mind when comparing term life insurance quotes, it will help you get the best when applying for insurance.

How to get the best Term Life Insurance Quotes

Everyone out there wants to get the best term life insurance quotes, therefore you need to equip yourself with some genuine tips to beat the rest and get the best deal out there. Here are some tips that will help you with that;

1. Shop Around: You can never undermine the power of shopping around and comparing offers from multiple providers, it will greatly help you settle for the best quote with better offers.
2. Buy Early: You need to buy term life insurance early. The younger you are, the lower the premiums. Therefore, buy term life insurance early so you can get the best offer
3. Choose the Right Term: In choosing the term for your life insurance, you need to pay for coverage that you need. It is not best to pay for 30 year policy when you need a 20 years policy. The right term, matters a lot.
4. Consider Laddering: Laddering is buying multiple policies with different term to match your changing needs over time. Therefore, you need to consider this as your needs might change over time.
5. Improve your health: You know, the better the health, the better the rates. Therefor, improving your health should be a priority to you while applying for a term life insurance quote. For example, if you smoke, you can quit smoking.
6. Work With independent Agent: As an individual you may not have access to multiple providers, however, independent agents can  help you compare quotes from multiple providers to know which is best.

Don’t forget, the cheapest option doesn’t always mean is the best. Analyse all options thoroughly so you can get the best coverage you need from a reputable provider.

Common Mistake to Avoid When Getting Term Life Insurance Quotes

Even experienced shopper can make mistake when it comes to term life insurance. You need to look out and not make this common mistakes below;

1. Underestimating your coverage Needs; While you don’t want to overpay, being underinsured can leave your family vulnerable.
2. Focusing only on price: You need to understand the cheapest policy is not always the best. The company’s financial strength, customer’s reviews and customer service are also important things to look at.
3. Waiting too long to buy: Your age is an important factor in term life insurance, don’t wait for too long, when you are old or older, because the premiums will always increase as you age.
4. Not Reviewing your Policy regularly: Reviewing your policing regularly helps you ensure it meets your ever changing needs. Therefore, review your coverage periodically as your needs can change.
5. Forgetting about Inflation: The world faces inflation on a daily basis, that coverage which seems adequate today, might not be adequate in 20 years to cater for your family’s needs. Therefore, it is important you factor in, inflation while obtaining a coverage.

Term Life Insurance vs Whole Life Insurance; which is right

You might have heard about whole life insurance and wondered how it compares to term life insurance. Here is how it compares with it

Term Life Insurance;

Covers you for a specific term.

It is generally more affordable

It offers you death benefit which goes to your family

It also expires at the end of the term.

While Whole Life Insurance;

Covers you for your entire life

And it is also more expensive than term life insurance

It has a cash value component which grows over time

It never expires as long as you pay the premiums

For most people, term life insurance is sufficient and more budget-friendly however, if you have long-term dependents, or you want to use life insurance as an investment, whole life insurance will make a better option.

Application Process for Term Life Insurance

After comparing term life insurance quotes and you are ready to apply, here is the process you have to pass through;

1. Initial Application: This is the very stage where you will provide basic information an=bout yourself and your health.
2. Phone Interview: After the initial application, you will receive a call from the insurer to gather more detailed information from you
3. Medical Exam: It’s now time to be medically examined to be sure how healthy you are and how low or high your premiums can be. It is usually free and can be done at your home or office
4. Underwriting: This is the stage where you application is being reviewed by the insurers alongside your medical results to be sure of your risk level.
5. Policy Offer: If the application is approved, you will then receive a final offer with your premium amount. Make sure you do everything mentioned earlier, to have a better premium offer.
6. Policy in Force: Once you have accepted and made your first payment on the premium, It’s now time to enjoy your coverage as it begins.

This whole process shouldn’t take beyond 4-6 weeks, although sometimes, insurers offer accelerated underwriting which actually makes the process faster.

The Future of Term Life Insurance

Term Life Insurance is definitely heading to a greater place like

1. Online Purchasing: More companies have made it possible to get quotes and policies entirely online.
2. Accelerate underwriting: With advanced data analysis, some applicants are now able to skip the medical exam.
3. Personalized Pricing: There are personalized premiums now offered as insurers makes use of fitness trackers and other data data.
4. Flexible Policies: As the world evolves, you might get to see more policies that will allow you adjust your coverage as your needs changes.

Conclusion

Now you fully understand what term life insurance is and how it can even be compared to whole life insurance. It’s time you put into practice all you’ve learnt and make informed decisions all the way. The goal of term life insurance is to provide peace of mind, and the earlier you jump on it, the lower the premiums, therefore, wait no more.