Term life insurance is one of the most important features of a person?s financial plans for their family. It is also one of the most affordable ways to protect your family in the event of your untimely death. As the name implies, this type of life insurance is designed for a specific term. The insurance rates will vary depending on the term, coverage amount and your overall health and lifestyle. However, there are still easy ways to help you get the best possible rate.
? Get your term life insurance while you are young and healthy.
Generally speaking, the younger and healthier you are, the lower your term life insurance rate will be. So, make your purchase of term life insurance when you are young and healthy. More importantly, lock in low rates for the entire period of your term. In that case, your rates will stay the same during the length of your term, even if your health declines.
? Stop smoking.
It is known that smoking is an unhealthy and expensive habit. If you are a smoker, you don?t just pay for the tobacco. You will also pay higher insurance rate. So, if you are considering buying term life insurance, stop the habit for at least one year before taking out a policy. This can significantly reduce your annual premiums.
? Decide on the amount of coverage you need.
Term life insurance is used to protect against financial loss and serves as income replacement for beneficiaries. However, too much coverage could make you pay too much in premiums, thus receiving too little in benefits. So, be sure to buy an appropriate amount of coverage. According to independent financial planners, an amount of coverage equal to 6 to 10 times your yearly gross income is recommended.
If you want to have a bit clearer idea on how much coverage you need, take advantage of online life insurance coverage calculators. These calculators help you estimate the level of coverage you need on the base of burial expenses, the number of years you wish to replace your income, you current net income and any large expenses you want to be covered such as mortgages and high education.
? Prepare for your medical exam.
Many life insurance providers require a term life insurance health exam to apply for the policy. The exam helps insurers determine your insurance rate. Those in good health will receive a low insurance rate. If you are getting a life insurance checkup, try to get a good night?s sleep before the exam and limit the use of stimulants like caffeine. Don?t smoke or drink alcohol and try to avoid overstrain at least 24 hours before your medical exam.
Be noted that your insurance rate can also be affected by treatable conditions such as high cholesterol. So get any medical programs treated before applying for a policy. Also keep your weight under control, as being overweight or obese affects your rates.
? Pay for your term life insurance annually, if possible.
Monthly payment may incur a monthly service fee that you insurer may charge. So, pay annually instead of monthly, if possible. If that isn?t possible, you can set up automatic bill pay which means your term life insurance premium is automatically deducted from your bank account. Many insurers will offer discounts to those with automatic bill pay account.
? Compare rates from different insurance companies.
Ask a broker to collect term life insurance rates from different insurance companies. As a convenient way, you can also collect rates online. There are multi-carrier brokerage firms (also called online insurance agencies) offering hundreds of life insurance quotes from top-rated life insurance companies. By comparison, you can find the lowest cost term life insurance that meets both your needs and budget.
? Decide on the term of your coverage.
Term life insurance is designed to offer coverage for a specific term. The term usually ranges from 1 to 30 years and insurance rates will vary with the term. Therefore it is important that you evaluate your situations and make your choice accordingly. For instance, if you have children in their teens and only want to provide for them financially through college, choose a 10-year policy instead of a 30-year term.
Source: http://www.insurance-how-to.com/low-term-life-insurance-rates/
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