Because term life is the simplest form of life insurance, buying term life insurance is actually a relatively straightforward process. When you buy insurance life term coverage, you will need to set a term, choose a death benefit, and select a carrier. Each of these steps is critical in choosing the appropriate policy for your and your loved ones' needs. Read on for a step-by-step overview of how to buy term life insurance.
Before you can begin buying term life insurance policy coverage, you will need to have at least an approximation of how much coverage you need. Bear in mind that term life is only temporary life insurance coverage, so the death benefit should only cover what your dependents would need to survive for that time period. For instance, if you buy term life insurance policy coverage with a ten-year limit, you might calculate your death benefit by multiplying your annual salary by ten. Don't forget to account for miscellaneous expenses your dependents might face in the event of your death, such as funeral and burial expenses, credit card debt, mortgage debt, and educational expenses.
Depending on the life insurer underwriting your policy, you may be able to choose from terms ranging from five to 30 years. The most popular terms are 10, 15, 20, and 30 years. When buying insurance life policy term, think about how long your dependents will need to rely on your income as you select your policy's term. For example, if you have very young children, you might select a 20- or 30-year policy to provide for them until they graduate from college and/or have jobs of their own. On the other hand, if your children are almost grown, you can save money by going with a shorter term when you buy insurance term coverage.
Arguably the most important step in buying term life insurance, choosing a provider can make or break the quality of your coverage. Selecting the right insurer on your own can be extraordinarily difficult, as almost every provider you will encounter online purports to be the best. By using LifeInsuranceRates.com, you can discern the good providers from the bad, as we partner with only the largest, most respected life insurers in the business. Your quotes will come from trusted sources that will allow you to buy insurance life term coverage at a reasonable price without sacrificing customer service or quality.