Is Buying Life Insurance Online A Good Option?

There are different types of life insurance and term life is only one among them. Yet it needs especial mention because it is hardly ever advertised by the carriers or canvassed by their agents. Yet, if you ask independent experts, they will highly recommend it for insurance purpose. Indeed, if you meet certain criteria, it can provide a large death benefit at a very affordable rate.

Do not bother about the fact that a term life is sold only for a set period. Nobody needs life insurance coverage for his whole life. Even those who buy whole life insurance cash out the policy after stipulated years. The policy having no saving component included is not an issue either. Those policies, which provide an investment opportunity along with insurance benefits, can do so only because you pay extra for it. Yes, all cash value policies are overpriced to offer such an opportunity.

Dont mix your investments with your insurance. If you buy low cost term life for insurance and invest the difference of amount in suitable funds to grow your asset you will have two distinct advantages:

If you die while the policy is in force, your beneficiary will receive both the insurance benefits as well as the investment amount. In case of the cash value policies, the carriers will hand out only the death benefit not the cash value accrued. This happens in spite of the fact that the cash value has been accrued using part of the premium you had paid.

If you keep your insurance and investment separate, you can easily take out your investments without disturbing your insurance coverage. In case of cash value policies if you want to take out your investments in your lifetime, you will have to give up your policy and thereby lose the coverage.

Therefore, if you are wise and have insurable interests to protect, you should buy only a term life policy. The purchase process always starts with receiving term life insurance quotes and so let us have a look at the quote form first. It has the following fields:
Name of your state
Date of birth
Height & Weight
Health class
Tobacco use
Coverage term
Coverage amount
Premium payment mode

In fact, if you study a quote form, you will understand that: the amount of quote, on which the actual rates are based, depend on these factors. Secondly, the actual policy price depends upon your age and health condition at the time of policy purchase. So if you want the coverage at a reasonable rate, you must buy the policy while you are still young and healthy with right body mass index.

The quotes also depend upon your health class. There are four of them and if you dont know which class you belong, consult a guide. Use of tobacco also increases the rates drastically. If you want the coverage at a reasonable rate, quit the habit at least a year prior to applying. The mandatory medical test is another important factor. Today we can buy life insurance online only; such policies do not require any medical test, but are they are rather expensive.

The greatest thing about these online policies is instant coverage. These policies provide the coverage almost instantly where as a fully underwritten policy takes four to six weeks to complete their underwriting process. There are different categories of instant life insurance policies available today. The simplified issue policies for example require you to answer some health questions. For the guaranteed benefit policies you dont have to answer any medical questions, but obviously, these policies are slightly more expensive than the other types. In fact, people who have earlier been refused coverage but need it badly only go for these guaranteed policies.

Whatever policy you buy, deciding on the coverage amount and coverage term is the first important step that you should take. Ideally, the amount should be such that it can replace the money you bring in every month, but that may not always be possible. If you are not sure, you can multiply your annual income before tax with fifteen; but it is imperative that you should also consider your assets, liabilities, living standard as well as the aspiration of your family before you come to any definite amount. As for coverage term, it is enough to remain covered either until you are sixty-five or until you are ready for self-insurance. Be careful; the cost of insurance is depended on these factors as well.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance term life insurance and seguro de vida, visit his site today.