Should you request a term life insurance price quote, be aware that you’ll be asked several questions including:

*    The applicant’s age
*    The applicant’s marital status
*    Whether the applicant smokes

Some insurers provide free life insurance quotes by e-mail.  Some require that you provide a phone number, so that a representative can call you.  Prior to being able to purchase a term life plan, you’ll need to answer additional questions and a physical may also be required. 

Term policies are, by definition, good for a specific timeframe.  You may desire to select a 3, 5, or 30 yr term.  Once that time has passed, assuming you’re alive, you’ll need to select another plan.  Some plans are renewable, from one term to the next.  However, a new physical examination may be necessary.

When you obtain a term life insurance price quote, one thing that you’ll need to select is the level  of coverage that you want.  That’s the main reasonthat people select this type of plan.  You’ll get more coverage for lower premiums.

As you would expect, your premiums will vary between insurers.  So, rather than just getting a single quote, get several and compare between them.

A major difference between affordable term life insurance and a “permanent” plan is that the permanent plans accrue a cash value.  As premiums are paid, the cash value continues to increase.  The policy owner can borrow against it, withdraw funds, or surrender the policy for the cash value remaining.  It is similar to a savings account, except that the cash value isn’t the sum of the premiums you’ve paid.

There is no cash value with term policies.  These only pay if the policy owner dies within the specified timeframe. 

At the time of requesting your quotes, you’ll be able to select the death benefit (or face value).  What should this figure be? Usually, you want enough to cover your final expenses, outstanding debts and to help provide for your beneficiaries, in case the unthinkable happens.  At the end of the day, everyone should consider affordable term life insurance, for the peace of mind it provides.

This entry was posted on Wednesday, December 30th, 2009 at 10:40 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.