A term life insurance is the least expensive way to buy a death benefit coverage where the benefit will be paid to the beneficiary by the insurer after the death during the term. It provides coverage at a fixed rate of payments, usually highly affordable, for a fixed period of time. It helps to cover most of the financial requirements for the insured or the beneficiary. To find out how much it would cost you, you can look at various term life insurance quotes online. There are quite a few sites that help you calculate term life insurance quotes online.
When looking for term life insurance policies, you will have to keep four things in mind. The first minimum requirement for a good term life insurance is financial stability where you will never have to spare a thought about the insurer’s ability to pay the insurance should the occasion arise. The second requirement is availability. Companies that don’t need any special eligibility to buy an insurance policy from them are a must. For instance, there are some policies that are only available to service members and their families. The third requirement is the option to convert. While the whole idea of this particular insurance is that it is valid only for a stipulated period of time, one should also have the option to convert it to a whole life policy. In the unfortunate instance of a terminal illness because there is always the possibility that one could die right after the term is over, leaving the family financially vulnerable. The fourth requirement is guaranteed renewability where you have the option to just extend the term by a couple of years instead of converting it to a permanent life insurance. This might, of course, cost you a pretty penny since it is understood that a renewal is necessary only because of the poor health of the insured and that the insurer stands to shell out money.
With the above four requirements in mind, some of the best companies to get a term life insurance from include TIAA Life, Transamerica, Amica Life Insurance, New York Life and State Farm. You can compare their term life insurance quotes online, before making a choice.
TIAA Life offers the term limits in most five-year increments from ten to thirty. It allows for permanent conversion at any point during the term. In the long run, though, New York Life might work out cheaper because it allows term lengths of any number of years between ten to twenty. Transamerica is renowned for its tolerance in pricing for tobacco users given that smoking is a red flag for life insurers who automatically slot you into a high-risk category then. However, Transamerica has a very limited number of permanent policies that need conversions. Amica provides the most competitive term life insurance quotes online. It has the best web customer service with 24/7 responses to customer queries on policies and an online live chat option. However, it does not allow you to convert to a permanent policy after the first ten years. You can compare the term life insurance quotes of these companies online and then make a decision.
State Farm offers you the option to choose between various specifics in the policies. For instance, there is Select Term Life Insurance where you choose either ten, twenty or thirty year of coverage which typically starts at $100,000 with affordable premiums at a level during the initial term. Premiums will increase every year once the initial term is done with. It can be renewed up to 95 years and can be converted to a permanent policy regardless of health. The conversion to a permanent policy is subjected to age limits, though. Another is the return of premium term life insurance where with a premium payment you are covered for a period of twenty or thirty years based on your choice. If you outlive this period, all the premiums paid will be returned. Then you have the Mortgage Term Life Insurance which provides funds for mortgage repayment in the event of premature death. There is also the Instant Answer Term Insurance which is designed to pay off loans and cover funeral costs.
When you shop for term life insurance policies, remember these simple pointers. You’d normally need a policy that gives a life insurance of ten times your income; buy a policy on your own rather than buying it through your employer unless you have health issues because you might not work there forever and the insurance does not apply if you leave. You need insurance even if you are a stay at home spouse looking after children because in the event of your death someone will have to be paid to look after the children or to fill your slot. It is estimated that a stay at home spouse does $143,000 worth of work annually.
Remember, a little bit of insurance is better than no insurance at all which is where term life insurance comes in. Before you go in for one, research some term life insurance quotes online to see which suits you the best.
