Term Life Insurance Buyer’s Guide for 2022 – InsuranceNewsNet
Term life insurance is ideal for families with children and people who don’t want to bequeath large debts to others. Here are the steps to getting a policy, including comparing insurers, choosing a type of term life insurance policy, and assessing financial need.
Compare the prices
The features and benefits included in term life insurance policies may vary by insurer. People will want to shop around to find the coverage and benefits that best suit their budget and needs. Life insurance buyers may want to know if a provider offers living benefits, which can allow an insured person to access their death benefit if they become critically ill. The money can be used to help pay for medical bills and other costs. Some insurers offer renewable term life insurance. This allows a policyholder to renew the policy after the term period has elapsed. The policy will renew at a higher price, but does not require requalification or another medical exam.
There may be times when it is more beneficial for a policyholder to switch from a term policy to a permanent policy. If life insurance buyers are looking for this option, they may want to find an insurance provider that allows conversion and determine the conversion period. It is also important to compare the premium costs that different providers offer for term life insurance policies. Individuals can get multiple quotes from life insurance companies through an agent or online insurance marketplace. They should compare policies equally by looking at those that offer the same term, amount of coverage and other specific desired features.
Don’t wait too long
It is a good idea for policyholders to buy life insurance when they are younger and in better health so that they can benefit from a more affordable rate. Indeed, insurers base a policyholder’s premiums on factors such as their age and state of health.
Purchase sufficient amount and duration of coverage
A few different types of term life insurance policies include level term life insurance, yearly renewable term life insurance, decreasing term life insurance, and return-of-premium term life insurance:
- Term life insurance is the most common type of term policy that offers the same death benefit and premiums throughout the term. It is ideal for those who want a consistent long-term option.
- An annual renewable policy offers guaranteed coverage that renews each year without the insured having to submit a new application. It is ideal for those who need a short-term option, but it should be noted that premiums can increase each year with these policies.
- Decreasing term life insurance has a constant premium cost, but the death benefit decreases over time. An example of this type of life insurance is mortgage life insurance. The payment is tied to the declining balance of a mortgage, with the beneficiary being the mortgage lender. This policy can benefit those looking to cover a specific debt, such as a mortgage or other loans.
- Refund of term life insurance premiums is a policy that will refund all premiums paid if a policyholder outlives the policy. Although more expensive than traditional term life insurance policies, it can be useful for life insurance buyers who want to be more disciplined about saving.
The bottom line
All life insurance buyers must ultimately assess their personal financial needs to choose a policy that is right for them. For example, a couple with young children may want a long-term life insurance policy with a large coverage amount. In contrast, an older person may want a shorter term life insurance policy. Consider the checklist below when deciding which term life insurance policy to buy.
✔ Decide what coverage you need
✔ Choose a term length
✔ Ask for a no-exam life insurance option if you prefer
✔ Finally, don’t forget to shop
For all media inquiries, contact:
[email protected](312) 288-0068
This content was posted through the press release distribution service on Newswire.com.
Source: Fidelity Life