Term life insurance can help ensure your loved ones are financially secure in the event of your passing. If you die while the policy is in force, the insurer will pay your beneficiaries a guaranteed, tax-free death benefit that can help replace your income. With so many insurers and policies available, it’s wise to research and find quotes to minimize costs and maximize coverage. Let’s dive deeper into how to find the best term life insurance quotes so you can get the coverage you need and stay within your budget.
How does term life insurance work?
Term life insurance provides coverage for a set period of time and pays out a death benefit to your beneficiaries if you die while the policy is in force. Term life policies generally last 10 to 30 years, and premiums are typically more affordable than many permanent life insurance policies. If you outlive a term life policy, you will need to enroll in a new policy to continue coverage.
How to get the best term life insurance quote in 2022
Follow these steps to get the best term life insurance quote for you and your loved ones:
1. Determine your coverage needs
First, you should determine how much coverage you want. In many cases, your death benefit should be worth 7 to 10 times your annual income. When deciding on your coverage needs, you should take your beneficiaries into account. The more beneficiaries you have, the more coverage you might need.
When figuring out how much coverage you should get, it’s wise to consider outstanding debts like mortgages, credit cards, and car payments, since your beneficiaries will have to finish paying these off. You should also consider future expenses like your children’s college tuition and funeral costs when you pass away. And figure out how much you have in your savings, so you know how much of a financial cushion your loved ones already have.
When deciding on coverage, think about riders as well. For example, you might consider an accelerated death benefit policy if you want to protect against the financial consequences of a terminal illness.
2. Shop around and compare quotes
After determining how much coverage you should get, do some research and find quotes from several insurers. Many insurers have free quote forms on their websites. Once you find a few good quotes, here are some things you can compare before making your decision:
- Term lengths: Many term life insurance policies last 10, 20, or 30 years. Compare each of these terms and choose one that works for your unique situation. For instance, you may get 20-year term life insurance if you have young children and want to have coverage until they become adults.
- Types of term life policies: There are many types of term life insurance, including level premium, increasing, decreasing, convertible, and renewable policies. Do some research and compare each one’s features and benefits before moving forward with a policy.
- Premiums: Some life insurance companies may offer different premiums for the same type of policy. When looking for the right quote, compare premiums and choose the best price for your budget.
3. Apply for a life insurance policy
Once you’ve picked a quote, fill out the life insurance policy application. Make sure you have all necessary documents and information on hand before applying, like your Social Security number, proof of income, and driver’s license. Applications will typically ask for personal information like your name, address, height, weight, you and your family’s medical history, your lifestyle, who your beneficiaries will be, and whether you have other life insurance policies. You may also have to authorize your doctor to share any required information about your health with the life insurance company.
Double check the information you’ve filled out before submitting the application to make sure everything is correct. Once you submit your application, you can schedule and undergo a medical exam if the policy requires it.
4. Sign the paperwork
Once you complete your medical exam, the insurer will begin the underwriting process, during which they’ll evaluate your application and medical exam results. This will help them decide your eligibility and how much you’ll pay in premiums. Keep in mind that this process can often take a few weeks, and the insurer will contact you and issue a policy offer once it’s complete. If you agree with the policy terms, you can sign all the paperwork and start making premium payments.
Get an affordable term life policy
Term life insurance can offer excellent coverage for a low rate and give your beneficiaries financial protection if you pass away. But before applying for a term life insurance policy, you should take steps to ensure you get a good quote. This starts with determining your beneficiaries and coverage needs, then shopping for different quotes to compare policies. Once you’ve found a life insurance policy that works for you, you can fill out an application and wait to receive a policy offer. Taking these steps will help you secure coverage at the best rate.