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By David J. Livingston
If you are looking to get a term life policy, your first step is to get term life insurance quotes, as many of them as possible. Getting the quotes is just the first step. That means your actual shopping i.e. clever shopping involves comparing the various different quotes you get from the different providers on different websites. These days it is easy to get instant term life insurance quotes and compare them in one place with the online services provided by many health care or other websites.
While getting the quotes and looking at them in one place is easy, comparing and choosing is definitely not that easy task. This is because a lower premium or more inclusions or heavy coverage does not indicate the best policy.
Term life policy is a coverage option that insures an individual for a set time period or term. If the policyholder dies while the policy is still in term, the death benefits are paid to the beneficiaries. Otherwise the policy just ceases to exist at the end of the term. Most companies let the policyholder to renew the term without medical examination but after adjusting the term for age. So getting the right company and the right policy at the outset is very important so that you can have stress free life coverage for life.
To compare quotes you need to get many quotes. Few things that you need to consider while getting quotes are
1. Your annual income
2. Outstanding debt
3. Lifestyle expenses
4. Savings and investments
These details help determine the amount of coverage you would need to purchase. Roughly you would need about five to eight times your living needs. Based on this coverage amount required, your age, term of cover and your health the premium will be fixed. So the first thing you would have to compare is the coverage offered in the different quotes.
Some companies may offer low insurance rates but at the same time they will also offer low coverage. So you need to decide on what you are looking to compromise on. Low rate and low coverage is not really a great deal. Next compare the associated term of the policy across the quotes. A short-term policy should have lower insurance rate when compared to the long-term policy. So this would surely affect your premium and if you miss this you might choose a policy for lower premiums just to find out later that you have chosen a short-term policy when you actually needed a longer policy.
Next compare the different conditions and underwriting policies of the different providers. Some might require medical exams; some might have specific policy with regards to the death benefit; some may have a specific way of dealing with accidental death, etc. Make sure you explore what the various inclusions and exclusions of each policy. Then you can compare the costs i.e. the premium that you will be paying the company on the monthly basis or yearly basis. Check to see under what rate class each of the companies has rated you. In one you would be in the preferred class in another you might be in the standard class etc. The rate class determines your premium.
While comparing the quotes you should also check for the reputation of each of the providers. Even if a company offers a higher insurance rate, if it has a better reputation compared to another that offers lower rates, you are better off picking the more reputed one. This is because with reputed companies you have more surety of payouts. Also make sure that the company has no complaints and if there were any look to see how they mitigated those complaints. You can take the assistance of the local Better Business Bureau and the State Department of Insurance in checking the reputation of the companies. At any cost you need a reliable provider. In fact you are entrusting them with the money that your family will need after your time.
About the Author: Article by David Livingston of EQuote.com, a website with the best
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