Knowing how to buy term life insurance the right way is very important for a number of reasons, number one being saving you some big money in premiums. I’m going to give you three simple tips that will help you find and buy the best most affordable term life insurance policy.
Term Life Insurance is by far the least expensive form or type of life insurance that you can currently purchase. The last ten years have seen the premiums come down drastically due to people living longer in general and competition with the carriers. Most big time financial mavens like Dave Ramesy and Suzie Orman praise term life insurance for it’s cost effectiveness and practicality.
Now that you are ready to buy a term life policy just how do you go about it?
Start by contacting a very experienced life insurance broker or agent, look for someone who has some credential like the CLU designation. A broker is an agent who can sell multiple carriers plans and policies, an agent is typically someone who sells only for one company like New York Life or AXA. Make sure you contact a broker that sells for multiple companies this is the most important step that in getting the best quotes and rates from the carriers.
After getting at least ten separate carrier quotes you now have to start asking you agent some questions, they will now know that you have done your homework and this won’t be a rollover sale for them with the highest commission carrier!
First question to ask is which carrier’s have the best ratings, very important that when you die the company you have paid all those premiums into will now be able to pay your death claim. Don’t take this step lightly, really research the companies financials and ask a lot of questions. Get rating reports on each carrier from your broker and review with them.
Next is who might have the best underwriting for you personally? You will be disclosing some personal health information with your agent so make sure you feel comfortable with this person. If you have any major health issue’s this factor will be more important than if you are healthy and expecting to obtain Preferred rates. Most term life insurance companies have niche’s in underwriting for specific health impairments and your broker should know which is strong for each particular issue. If you have Diabetes or Heart Disease your selection will become more narrowed but that doesn’t mean you still can’t find a great, affordable plan.
Last it is important to ask which carriers have really great Permanent Life plans that you could convert to if needed or wanted to later in the term of your plan. You never know when you might have a serious health issue that could affect you from getting a new term life policy after your current plan expires. If your term plan is convertible you can convert it at the attained rate class you received when you took out the term plan, but you will pay the rates at your current age. That’s okay though it still will be much cheaper than paying possibly substandard rates.
If you follow this guide you are on your way to buying the most affordable term life plan that will protect your family, mortgage or business in the even of your death. Life Insurance is so easy to procrastinate and put off buying, I have even done it myself but with rates at an all time low you need to bite the bullet and just do it!