Some say that life term insurance is the best for insurance. It has affordable rates while all other policies generally are overpriced. However, some others find it as a waste because it does not offer any return unless the insured event takes place within the valid term. Consequently, even in this twenty-first century, so many people in America live without life coverage; they find the pure life insurance policies to be inadequate and the investment policies to be too expensive. One can imagine what happens to their family if they die before they have been able to settle their liabilities.
Term life may offer the coverage for a specified period only, but it cannot be considered inadequate. Remember, the policy is mostly sold for 10/15/20/25/30 years. You just need to carefully calculate the vulnerable years and then add few years to it. Anyway, thirty years is a long enough time for settling your liabilities and generally you dont need life coverage more than that. Even those who buy lifelong coverage generally cash out the policy after stipulated years. That is why its temporary validity is actually not an issue at all.
That it does not offer anything other than death benefit is also a non-issue. If you glance through the term life insurance quotes, you will know why. Indeed, a term life does not offer anything other than death benefit because you pay only for that. Indeed, the premium you pay is so low that it can barely cover the cost of insurance and a small administrative cost. If you want to build your asset, you can always do that separately using the difference in premium rate.
Separating your insurance need from your investment is the best way to secure your familys future. If you die while the policy is still in force, this is the only way you can leave both the death benefit and your investment for your family. If you buy one of those investment policies, the carriers will definitely release the insurance amount upon your death, but they will retain the cash value amount although that has been grown in a separate account using your own money.
Therefore, if you have a family or some other dependents to take care of, go for a term life. However, if you want to get the best out of the bargain, you must be aware of different variables that determine the policy price. Indeed, if you are looking for cheap life insurance coverage, buying only a term life insurance is not enough. Cheap rates are available only to people whose profile matches with the guidelines followed by a particular carrier.
Following are the guidelines most carriers generally go by:
Younger the insured is, greater is the chance that he will outlive the term and so he should preferably below mid thirties.
Women have longer lifespan and so they are offered the coverage at lower rate.
Higher body mass index and tobacco use may cause diseases later in life and so these people are charged more.
General health condition and hereditary traits are also looked into because they too have great effect on longevity of a person.
Road habits, occupations, hobbies and recreations are also important and so these too are included in the underwriting process.
Therefore, the life insurance rates actually depend on the carriers perception of your longevity. Remember, the claims can only be placed if the insured dies within the term. That is why the carriers will offer you the coverage at a low rate only if they believe that you are going to outlive the term. To make sure, they will ask you to undergo a medical test. Some policies of course exempt you from taking any such test, but such policies will be more expensive even for healthy and tobacco free people. People generally opt for them because of their simplified purchase procedure.
As it is, availability of life insurance online has made the purchase process of any policy more or less hassle free. You no longer need to trudge to the brokers office or entertain agents at home. You can receive quotes at home and apply through internet. However, unless it is a no medical policy, you will have to appear for an interview and a medical test; but you will not have to take any hassle for that. It is generally arranged at the time and venue of your choice; it can be your home or even your office. Therefore, you do not have any reason for not buying a policy. Get one today and lead a peaceful life.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on affordable life insurance and term life insurance, visit his site today.
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