Getting life insurance today can be somewhat more complicated than it was even just a few years ago. In the past, a life insurance agent would typically come to the home of an individual or a family, sit down at the kitchen table, explain the policy options and the benefits, and then provide the amount of the premium quote in order to obtain such coverage.
Today, a lot has changed – not only in the life insurance industry in terms of the vast array of different types of policies and plans that are available, but also in the world of technology and in how people are able to obtain their information.
Gone are the days when you need to even talk directly to an insurance agent to discuss your policy or premium options, because now there is much more information that is directly available via the Internet. Over the past several years, insurers have made obtaining information that is needed by consumers extremely easy to locate. Now, when you need to find particular details on life insurance coverage that is available, as well as how much it will cost, you need to do little more than simply log on to the Internet.
One thing that is important to keep in mind, however, is that it is still essential to ensure that you are purchasing the right type of coverage for your needs, and also the amount of benefit that will be required by your survivors in case the unexpected happens. This is because having the wrong type of policy and/or too little benefit could still place those you love into financial hardship – at a time that is already very difficult for them.
This is why you still should consider working with a company or an agency that truly knows life insurance, as well as having a good basic understanding of the types of insurance coverage that you can have.
Types of Available Life Insurance Coverage
Today, while there are many variations of coverage, there are two primary kinds of insurance that can be purchased in the marketplace. These are term and permanent. Term life insurance is known as the most basic form of insurance protection. This is because it offers just a pure death benefit option, without any other type of cash value or savings component attached.
Because of this, term life insurance is usually quite affordable for people to purchase – especially if the insured is young and in good health at the time of application. As its name implies, term insurance is purchased for a set term, or time period. These terms can usually be for 10 years, 15 years, 20 years, 25 years, or even for 30 years, depending on the underlying life insurance carrier.
Once the time period has elapsed, the term life insurance policy will expire – and, if this person wishes to keep having life insurance coverage, this individual will need to either re-qualify for coverage or purchase another life insurance policy. At that time, because of the insured’s increased age, the premium on the new coverage will usually be more than on the initial policy. If the insured has developed any type of adverse health condition, it is also possible that they may not be able to qualify for a new policy.
A permanent life insurance policy is different from term coverage in several ways. First, these policies provide both a death benefit component, along with a cash value, or savings, component. The cash in the cash value component is able to increase on a tax-deferred basis, meaning there won’t be a tax due on the gain of the cash until the point that it is withdrawn. Over time, this can allow the cash to truly grow and compound exponentially.
The cash that is within the policy may be either withdrawn or borrowed by the policy holder for any reason that he or she wishes – including paying off debts, purchasing large ticket items, and/or paying for a child or a grandchild’s college education. Cash value that is borrowed or withdrawn is not required to be paid back. However, it is very important to understand that if the insured were to pass away while there is an unpaid cash value balance, the amount of such a balance will be deducted from the amount of the policy’s death benefit that is paid out to the beneficiary. This could have a big effect on the overall proceeds – as well as an ongoing effect on the beneficiary’s future lifestyle, depending on how the proceeds were going to be used. So, this is vital to know and understand.
Unlike term life insurance policies, permanent life insurance policies do not have a set time limit, and they will therefore never expire – as long as the premium continues being paid. Therefore, regardless of whether an insured obtains an adverse health issue, he or she will remain insured with a permanent life insurance policy.
How Much Will Your Life Insurance Policy Cost?
Life insurance quotes are determined based on a number of different criteria. These include the following important factors:
The type of life insurance policy that you are purchasing is one of the primary criteria in the amount you’ll pay for your coverage. In this case, if an individual for insurance coverage is relatively young and in good health, term life insurance policies are typically less costly than a similar amount of permanent insurance coverage. Over time, however, term coverage can become more costly.
Amount of Coverage
The cost of insurance coverage – or the cost of the policy’s death benefit – that you are purchasing will also have a major effect on how much your life insurance quote will be. Here, the more death benefit you are buying, the higher the premium quote will usually be.
Applicant’s Current Age
The current age of the person who is applying for insurance coverage will make a difference in the price of the insurance policy. In this scenario, the younger that the applicant is, the lower the premium will be. This is because one of the primary components that is factored into the price of life insurance quotes is a person’s life expectancy. Certainly, the older a person is, the shorter their life expectancy will be – and that makes them more risky to a life insurance carrier, which will in turn, prompt a higher amount of premium to be paid.
Health Condition of the Applicant
The health condition of the applicant will also be key in how much premium will be charged. Here again, because life insurance quotes are based in large part on one’s life expectancy, someone who is in good or excellent health will typically be charged less than someone who is in poor health. (Someone who has extremely poor health may be declined altogether from obtaining life insurance coverage, depending on the insurance carrier and / or the type of insurance policy that is being applied for).
Applicant’s Occupation or Activities
In addition to the applicant’s age and health, there are other factors about the applicant that can also have a bearing on the life insurance quotes that you obtain from insurance carriers when comparing policies.
For instance, many insurance carriers will feel that it is risky to insure an individual who has a dangerous occupation such as a fire fighter, police officer, window washer, crane operator, and iron worker – just to name a few. In addition, applicants may also participate in hobbies or activities that insurers also deem to be dangerous such as skydiving, scuba diving, or rock climbing. If you fall into any of these criteria, there is a chance that you may have to pay more for your insurance coverage – all other factors being equal – due to the higher risk that you present.
Finally there are activities that can have a direct effect on your health, like smoking. Most companies have separate tobacco rates that are just on life insurance policies for smokers and other tobacco forms. If you can be smoke free for at least a year you can get back to the lower non-tobacco rates.
There are numerous riders that may be attached to life insurance policies. Oftentimes, these riders may be used to help “customize” the coverage to better fit a policy holders’ needs. Depending on the kind and cost of riders that are added will be key to what the ultimate policy quote will end up being.
How to Obtain the Best Life Insurance Quotes
Certainly, the life insurance company that is underwriting the policy will also be a factor in how much will be charged for the coverage. This can oftentimes be the case, even if all of the other criteria above are the same. This is why it is extremely important to review the company that you consider purchasing the coverage from before making your concluding decision.
Life insurance companies are rated by insurance company rating agencies. These agencies, including Standard & Poor’s, A.M. Best, Fitch, Moody’s, and TheStreet.com, all assign various ratings to life insurers based upon their financial strength, claims paying ability, and other various factors. Be sure that you recognize if a particular insurer appears to be in dire financial straits, and if so, steer clear and go with another carrier for your life insurance coverage – even if the quote is lower than what you can purchase somewhere else. Typically, we recommend sticking with insurance carriers that have been given ratings of an A or better.
How and Where to Obtain the Best Life Insurance Quotes for Your Coverage
When you are seeking the top insurance quotes for coverage that you need, it is oftentimes wise to do this through either a business or a company that can be with more than one insurance carrier. Why? Because you will be in much better position to objectively compare the best life insurance companies’ benefits, policies, and premium prices – all in one place.
If you’re ready to start comparing, we are here to help you. We do business with many of the best life insurers around today, and we can assure you that you will get all the important details you need to make the best decision for yourself regarding life insurance. We can do so for you in a quick, efficient process – right from your home, and without you have to go meet an agent somewhere in person. So, if you are ready to get going, just fill out our form on this page to have a set of customized term life insurance quotes just for you.
If you still have any questions or concerns regarding life insurance quotes or life insurance in general, feel free to contact us at 888-229-7522, tool-free. We are committed to helping ensure that you have all the info you need to help you and get the plan that best fits your needs. Our experts are here to help you move forward confidently, feeling that you have the policy – and the premium price – that best fits with your specific life insurance coverage needs. We’ll also walk you through how to obtain a customized life insurance quote for the policy that you choose.
Purchasing life insurance can definitely be confusing. There are many things to keep in mind with different options – and you want to be confident that you aren’t leaving anything out. Having the right kind and amount of insurance is essential for ensuring that those whom you care about can move forward in the event of the unexpected – and you want to leave them with the financial resources that they will need, along with the peace of mind.
We’ll assist you with all of the tough issues, including whether or not you should purchase term or permanent coverage, how much death benefit coverage is right for your particular needs, and which of the many life insurance carriers will be the best option for you and your loved ones – both now and in the future, should they need them. So, don’t wait, call us today – we are ready to help you.