Saturday, December 8, 2007

How To Get Cheap Term Insurance

Buying insurance has become a necessity in today’s world. But a good insurance policy doesn’t come cheap. The premiums you pay will increase as you extend the duration of the policy. Hence whole life policies are more expensive than term insurance. This is because a whole life policy covers you for the entire life while a term insurance policy will offer cover only for the term decided while signing up for the policy. A term insurance policy is a cheaper and simpler way to insure your partner’s and your family’s financial future if you die. Here are some useful tips on buying the cheapest term insurance policy.

Why should I buy life insurance?

You should buy term life insurance if you have a mortgage or dependants. In the unfortunate event of death, the insurance will pay off the mortgage, thus providing shelter to your family, who in other circumstances would have been left homeless.

What should the term of my term life insurance be?

The duration of your term insurance should equate the duration of the mortgage. This ensures that if you die, it will clear off your debts so that your family has a roof over its head.

Why should I buy term insurance?

With plenty of insurance policies flooding the market, it becomes confusing for a layman to find out the right policy meeting your needs. Besides, buying complex policies will force you to pay higher premium. Term insurance is a simple and cheap policy that pays a certain amount entirely on your death. As there is no investment factor included in the policy, you do not get anything if you are alive when the policy expires. This means the insurer cannot charge you heavily for this policy, making it the cheapest policy in the market.

How should I buy a term insurance?

Due to progress made in medical science, the quality of our life has increased. This has brought down the cost of insurance premium by 40%. If you are paying the premium at the old rate, negotiate with your insurer or look around for a new one. Get quotes from various insurers before committing yourself. This is because there is a vast amount of difference between various policies. Though you can buy a policy from a physical entity like bank or an insurance broker, internet offers the fastest and simplest way to get the insurance. You can get online quote instantly and understand the premium you will have to pay. Quotes are just an estimation of the premium you will pay. The actual premium will be decided once you have submitted the application form. Insurer will consider various factors like height, weight, age, sex, smoking, presence of diseases and other factors before deciding the premium. If you are unhappy with the premium, you can terminate the policy.


1 comment:

hadley said...

One way to get affordable term life insurance is to apply for term life insurance online.

If you are age 60 or under, you can apply online and get approved within 15 minutes, if qualfiied.

You may qualify for up to $150,000 of term life insurance without taking any physical exam.

This option is for people who don;t have time for an exam, or just need life insurance protection without the hassles.

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