There is some important basic information I would like to explain to everyone regarding their term life insurance quotes.
When you get a quote, obviously you are looking at the cost of the policy. You may have noticed that there are a few different ways you can pay this premium: monthly, quarterly, semi-annually, & and annually. Many people don’t realize that the insurance company charges a higher rate if you choose a method of payment that isn’t done on an annual basis. They charge a little surcharge. The closer it is to an annual payment, the cheaper their extra surcharge is. So when possible, make sure to pay your life insurance on an annual basis.
Length of Term
The longer the term is, the more expensive the annual cost of your life insurance is. That is simply because the longer the insurance lasts, the more likely it is that the insurance company would have to pay a claim. That is simple odds and mathematics. However, depending on your age, sometimes having a policy that lasts 10 years longer is actually only a few dollars a month more expensive. For people older than 55, in some cases the reverse is true. Always be sure to check all of your options.
Amount of Insurance
Term life insurance isn’t that expensive. That’s why I suggest that people attempt to get as much as they can. I’m not talking about going over-board here; someone making $50,000 doesn’t need $10 millions dollars in life insurance. However, someone in there 30′s could get a $1,000,000 in life insurance for less than a few hundred dollars a year. Since you can get a term life quote as many times as you like, play around with the options (amount, length of term) and see how much life insurance you can afford.
That’s it for now, but I’ll be posting more on term life quotes next week.