Few Steps You Can Take To Make Your Cheap Term Life Insurance Even Cheaper

It is quite ironic that in spite of it being the original policy, few people have actually heard of term life insurance. It is more ironic that if you are looking for full protection of your family at an affordable rate, no other policy is as suitable as a term life is! Policies such as whole or universal life may seem quite tempting, but experts say that they are neither suitable for insurance purposes nor for investment. If anybody gets any benefit out of them, it is the insurance carriers. That is why they put more thrust on their sales and marketing.

Anyway, we are not here to talk about the defects in other policies, but to discuss why you should buy a term life and if there is anything you can do to get better coverage at cheaper rate under this policy. First, let me make it clear that a term life is valid for a limited period and it does not provide anything other than death benefit.  If you find that unacceptable, look at other form insurance such as auto insurance, home insurance etc.

All kinds of insurance policies pay the benefit only when the insured event occurs and all of them are valid for limited period such as one year. You have to renew them every year if you want to continue with the coverage; otherwise, you will have to live uncovered. This is what insurance is all about and a pure life insurance policy like a term life is no different from that. Other policies, which offer cash value accretion along with insurance opportunities, do that only because you pay for it. However, that is a different story; let us now concentrate more on making your cheap term life insurance even cheaper. 

It is a fact that the term life insurance rates are cheap because the entire amount you pay as premium is more or less utilized to develop the face value of the policy; only a small amount is used to meet up the administrative cost. Another basic reason is that, like every other insurance product, the pay out is very limited because very few people actually die within the valid period. However, if you want to make that even cheaper, you will have to take certain steps.

Now, what are those steps? Before we go into it, let me tell you that the purchase procedure always starts with receiving term life quotes. Such quotes are actually estimated price and unless you provide the inputs carefully, you may be for a nasty surprise and the quotes may vary substantially from the actual price. Therefore, receiving cheap term life insurance quotes is not enough; make sure that they translate into cheap rates as well.

Now, let us get back to original point. If you want cheap quotes, you should keep an on the following factors:
1. Age is important. Buy the policy while you are still young healthy
2. Gender too is important because women have longer lifespan and hence lower quotes.
3. Make sure your weight is proportionate to your height. Higher body mass index may lead to disease and consequently to higher quotes.
4. Tobacco use also leads to many diseases and consequently to higher quotes.
5. Health class is important. It involves apart from your personal health, your family’s medical history as well as many other factors well within control. Study that and do whatever you can to improve your health class.
6. Also, determine the coverage term and amount correctly. They are directly proportionately to them.
7. Yearly payment mode is the cheapest.

Another point to remember is that there are different types of term life policies and some like the life insurance no exam or return of premium policies are essentially more expensive. While the former exempts you from taking the mandatory medical test, the later returns the entire paid premium if the insured outlives the policy. However, if you talk about convenience, no other policy is as convenient as life insurance no exam is. Their rates are high because they take it for granted that you will have some minor problems.

Life insurance no exam not only allows every transaction to be completed online; the system is such that you can have the coverage within 24 hours. However, do not think you can have the coverage in spite of having any major illness. While you can get away with the odd niggles these carriers collect reports from various quarters. If they find anything wrong, they can reject your application. Thus, even here it is very much the same. The only major difference here is that the premium is quite high and things move faster here.

Article by David Livingston of EQuote.com, a website with the best low cost term life insurance and affordable life insurance information in the country.