Term Life Insurance Quotes
Term life insurance is a very popular alternative to whole life insurance. The difference between the two types is the length of time in which a buyer is insured. With a whole life insurance plan, the policyholder is insured all the way up until death. A term life insurance policyholder, on the other hand, is insured against death only for a specific period of time.
Life insurance is said to be the gift of love. That is, you don't buy life insurance for yourself, but for the people around you who depend on you, or those who are responsible for you. Parents, for instance, buy life insurance not only to cover funeral costs, but also to provide a replacement income should they leave their kids before they reach adulthood.
Getting a Term Life Insurance Quote
A term life insurance quote is based on a number of factors including age, health, and the term which you'd like to have insurance.
Popular terms are 10, 15, 20, 25 and 30 years, though some insurers will create more complex policies depending on the size and scope of the policy you're seeking. As the length of the term grows, so does the risk that you, the policyholder, will die in the period that you are insured. For instance, if at 20 years old you purchase a 10 year life insurance policy, the life insurance company is essentially gambling that you will not die before 30 years old, which would be very unlikely. However, if you happen to be 70 years old and you purchase a 30 year term life policy, the chance of death in that term is highly likely, since only a small percentage of people make it past 100 years old.
Health is another important factor, especially on high dollar, very expensive, term life insurance policies. On smaller policies of $10,000 or less, your insurance company may not require any health screenings, just your word on your current health standing. (This doesn't mean you should lie. Lying is insurance fraud, and the insurance company does not have to pay out if you act fraudulently). High payout insurance policies will require a physical, which will help the insurance company determine the risk in underwriting your specific policy.
When Most Shop for Term Life Insurance Quotes
Term life insurance is sold most often for a very few reasons. One of the most popular term life insurance plans are small policies parents purchase just a few days after the birth of a newborn. These term life policies usually last until the son or daughter is anywhere from 18-25, and insure the family against the early death of a child.
These policies are very inexpensive, and are many times only a few dollars per month for up to $10,000 of coverage. That amount of coverage is enough to cover only a burial and funeral service, and the risks associated for a specified term.
Term life insurance is also popularly purchased by young couples to insure themselves while they save for retirement. One very popular talk radio personality and personal finance guru, Dave Ramsey often talks about the benefits of a term life insurance policy over whole life. Since term life insurance is less expensive per month than whole life, younger couples can sock away more money into savings or retirement so at the end of the term they'll have assets that can both cover the cost of a unexpected death, and provide for young children.
Shopping for the right life insurance can be a difficult game of cat and mouse. Don't get discouraged, however, as if you do it right the first time, you won't have to do it again for as long as you live!