Top 10 Tips For Term Life Insurance
If we can parse our years of experience in the term life insurance market into 10 tips to concentrate on as a shopper of term, we would list the following in this order:
1. Shotgun Approach. We have given you a wonderful tool in that you can quickly run multiple term life instant quotes while changing your parameters (term length, amount of coverage, health class). Pick your ideal term life length/amount and then test amounts higher and lower from there. Write down the rates from across the range of quotes and find your happy medium.
2. Be conservative on health class. Your basing your decision on cost (assuming with a good carrier of course). It’s best to get good news after underwriting in the form of a better health class than the reverse due to a change in health class offered by the carrier.
3. Nail the paramedical. A big part of the carriers consideration is the result from your paramedical exam. Read our article on performing your best for the paramedical in order to improve your odds and ultimately, your term life insurance rates.
4. Don’t Wait! With life insurance, every year you wait means you pay more, not to mention that it’s one more year that you have no protection. The cost of waiting is high!
5. Price Shop current coverage. Don’t assume you have the best rates and you will not do better. Term life insurance rates have been under tremendous pressure and it’s best to double-check.
6. Have access to multiple carriers. I would be wary of a broker that only presents 1-2 plans. We let you quote 100′s of plans and our quoting engine will present the best priced plans by carrier strength.
7. Stay within your budget but consider future dollars. It doesn’t make sense to buy too much life coverage. If you can’t afford the premium and lapse the coverage, it’s money thrown away. On the flipside, due to inflation, $30/month now will likely feel like $15/month 10 years from now. Find the middle ground.
8. Honest and Accurate. Make sure to present all your information during the application process. The intended piece of mind derived from purchasing life insurance is only as good as the accuracy of your supplied information.
9. Understand the the value of term life versus whole life insurance. It’s a tired of comparison of term being like renting a house and whole life like owning. This would be equivalent if rent was $1000 and a mortgage for an equivalent house was $10,000! We think you can find something else to do with that $9000.
10. Take advantage of the help offered by a licensed, term life professional agent. There’s no difference in rates or coverage. You get a third party that can help you with the selection, enrollment, and ongoing policy servicing of your term life insurance plans. By the way, that’s us!
There are all kinds of variables and little twists from carrier to carrier, but these 10 tips will greatly improve your odds of finding the best value in term life insurance for your situation.
Dennis Jarvis is a licensed insurance agent concentrating on term life insurance. Shop, compare, and instantly quote multiple carriers with professional guidance and resources.
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