The Best Policy for Your Needs

If you have a spouse, children, or both, and their current and future standard of living is dependent on the money you bring home each month, Term Life Insurance is the best financial investment you will ever make! For a few cents per day, you can ensure that if something unexpected happens to you, they will not have their future secured.

The Purpose of Term Life Insurance

Nothing is more straightforward than term life insurance. In exchange for a set premium, the insurance company promises to pay the full amount of your policy to your beneficiary (the person designated to receive the proceeds).

This type of policy does not accrue any cash value. Simply choose how long you want the coverage to last and pay the appropriate premium. The higher the premium, the longer the duration of coverage.

A $100,000 policy for a 35-year-old male nonsmoker might look like this:

A ten-year term policy costs $7 per month, a twenty-year term policy costs $9 per month, and a thirty-year term policy costs $13 per month.

A $100,000 policy for a 50-year-old male nonsmoker might look like this:

A ten-year term policy costs $14 per month, a twenty-year term policy costs $21 per month, and a thirty-year term policy costs $36 per month.

How Long Do You Need Life Insurance For?

Most people will require coverage for a longer period of time than they may believe. Consider the following reasons for purchasing life insurance, as well as the appropriate time frames:

You have young children and want to ensure that if you die prematurely (isn't all death premature?) their college education is paid for. In this case, a 25- or 30-year term policy would be preferable.

You have a mortgage on your home, and you and your spouse's income are currently required to make ends meet. Because most mortgages are for thirty years, I would look for a 30-year term policy.

You and your spouse are 50 years old and empty nesters, but you need both incomes to maintain your standard of living, including retirement savings. In this case, a policy with a term of twenty or thirty years is ideal.

Buy the Least Expensive Policy That You Can!

A $100,000 twenty-year term policy, regardless of the insurance company, will pay $100,000 in the event of death. It makes no difference which company you buy from because you are not creating any cash values. The one caveat is that you should only buy from an insurance company that has an A.M. Best rating of "A" or higher. These are the firms with the best financials. You can shop the rates of the best life insurance companies in the United States on my website.

Shopping is essential because rates vary greatly from one company to the next. Monthly premiums for a $250,000 Thirty-Year Term policy for a 40-year-old female nonsmoker with no physical exam can range from $24 with the least expensive insurance company to $36 with the most expensive insurance company. The basic and important thing  death benefit is the same in all cases. My advice is to get the cheapest plan possible!

 Change Plans and Save Money!

Term life insurance rates have been steadily declining over the last thirty years. Simply because you bought a twenty-year policy five years ago does not preclude you from saving money or extending your coverage for the same premium by switching companies. Unlike cash-value life insurance, changing plans costs nothing. However, not switching could cost you a lot of money. And in today's economic climate, we need to make our money work harder for us!

48% of Americans die without leaving behind life insurance proceeds.

While it is shocking that 40% of Americans die without leaving any life insurance benefits, another 21% report that a loved one died without leaving enough life insurance. These statistics beg the question: why would an income-earning spouse or parent not purchase life insurance to protect the futures of their dependents?

According to one study, many people put off purchasing life insurance because it was all so confusing. I have some very good news for those people! Term insurance is straightforward. Simply select the number of years of coverage you require, obtain some quotes, and then select the least expensive policy.

Many people avoid purchasing life insurance because they do not want to deal with an insurance agent. These people regard insurance agents as nothing more than salespeople, and no one wants to be sold. There is also very good news at that time on this front. As a result of technological advancements, there are websites like mine where you can get a quote and enrol without ever speaking with an insurance agent, unless you want to!

Term Life Insurance Has Never Been Cheaper

A 35-year-old nonsmoker can get $100,000 of term life insurance for $9 per month. For only $4 more per month, this same individual can leave his family the same $250,000 twenty-year term life insurance.

Author: RabnawazToor