How To Take The Guesswork Out Of Buying Term Life Insurance

Protecting your family is the single most important thing any individual can plan for during his or her life. Buying life insurance can be confusing, and a frustrating process. As an insurance agent, I am well aware of the details a customer must know to make the decision easier. In this article, I will offer practical advice on how to simply purchase life insurance.

Look for a company that has at least an AA-rating or above. Independent agencies such as Moody's and Standard & Poors rate insurance companies on financial strength., there's little or no difference in two companies with the same exact financial rating. You should feel comfortable with any company that has an AA or higher rating.

When it comes to pricing, don't be fooled into thinking that insurance agents determine prices and that you can negotiate. Insurance companies set prices and they depend on age, gender, health, smoking status, family history, activities such as scuba diving, auto racing, foreign travel, etc. Insurance agents are not allowed to offer customers any pricing discounts or incentives. Insurance companies offer different versions of the same product. Often you will see what appears to be the same product, but at a lower price. Normally, the reason for this is that the lower priced policy offers a weaker guarantee where the policy is not guaranteed for the full period. For example, a 10 year policy that is only guaranteed for the first 5 years.

When choosing a policy there are important details to consider such as selecting the guarantee period, determining whether or not the policy is convertible and if re-entry is available. The guarantee period determines how long the premium remains at a level rate. Once the guarantee period is over, the premium will increase. It is important to determine how long you will need the coverage and choose accordingly. Guarantee periods range from 1 to 30 years.

Most, not all, insurance companies will offer the ability to convert your term policy into a permanent policy during a given period of time. During this period, if you choose to convert your policy, you are not required to prove medical insurability. You will only be required to pay the new premium at your older age. The period of time you have to convert may be the guarantee period or less. It is important to check the policy description or ask your agent to make sure.

Re-entry refers to the point at which you want to extend or purchase a new policy with the same company. It is important to know if you will be required to take a new medical exam or simply pay the new premium. All companies have different rules and you should understand them before you make your choice. Another important consideration is choosing your beneficiary. It is normally an easy decision when it comes to your spouse or partner, but not if there are minor children in your family. Minor children named as a primary or secondary beneficiary must have a guardian/custodian appointed to handle and distributions of funds according to state laws.

Choosing a life insurance policy does not have to be a difficult process. It also does not have to be done alone. Today, you have the choice of working with a local agent or shopping online. Internet websites such as CompleteLifeQuote.com allow you to search hundreds of products and offer you the final decision as to which one to apply for. The companies work with you to process your application and send your policy once approved. Customers can expect to save money this way simply because they are able to choose for themselves instead of having an agent push his/her company's products. I hope this article has shown you that making this important decision does not have to be a difficult process. Best of luck!

Mark F. Simmons
CFO, Complete Life Quote, Inc.

http://www.completelifequote.com

---

What to Look for in Good Health Insurance

Health insurance is a kind of protection that provides payment... Read More

Need Low-cost Temporary Family Health Insurance?

Many families will find themselves without medical coverage at some... Read More

Gain An Advantage Over Your Competition By Controlling The Cost Of Your Health Insurance

As many of us expect, the New Year will bring... Read More

Discount Auto Insurance - Get Low Rates And Superior Coverage

Auto insurance rates can be quite expensive. If you are... Read More

Life Insurance Leads, Insurance Leads, and the Online Lead Generation Business

I've long wanted to write an article about Internet Leads... Read More

How to Reduce Car Insurance Premiums

Here are some useful tips on how to reduce car... Read More

Term Life Insurance and Permanent Life Insurance

Term insurance and permanent insurance are two basic types of... Read More

Car and Home Insurance Northern Ireland

Don't skimp on insurance. This probably doesn't sound like a... Read More

MSA or HSA: Can I Keep My MSA Or Do I Need to Convert it into an HSA?

The Medical Savings Account (MSA) is an older form of... Read More

Terrorism: Acts of Terrorism: When Will Insurance Respond?

Insurance policies provide financial protection in a broad range of... Read More

Converting An Unwanted Life Insurance Policy Into Ca$h

Do You Own A Life Insurance Policy That You No... Read More

Insure Your House

When we talk about insurance the thing you have to... Read More

Insurance Credit Scoring: An Ethical Issue

The issue at hand is the use of a consumer's... Read More

Facts About Renters Insurance

If you rent an apartment or house, you might consider... Read More

Affordable Health Insurance - Health Insurance For The Self Employed

One of the things that is important to consider when... Read More

Car Insurance Monitoring for Discounted Insurance Rates - Privacy Devouring Monster Eating Us One Bi

For a price, would you let car insurer along for... Read More

Vehicle Insurance Online is a Convenient Way to Get Insurance Cheap

Online comparison shopping is a convenient way to get cheap... Read More

Mortgage Insurance Plans: How Good Is Yours?

Mortgage insurance, to pay off a mortgage, is something you'll... Read More

The Ups and Downs of Temporary Health Insurance

If you're a recent college graduate, or in between jobs,... Read More

Why Boats Are A Pleasure... But You Still Need Boat Insurance

One of the greatest pleasures that a man can have... Read More

Do You Know What The 7 Home Insurance Plans Are?

Most people don't realize that there are 7 different homeowners... Read More

The Best Rates on Life Insurance

Finding the best rates on life insurance is not difficult... Read More

Used Car Insurance

Every state requires that drivers carry liability insurance. The liability... Read More

Guide to Car Insurance

Here is a useful guide to car insurance. Buying car... Read More

Eleven Money-Saving Auto Insurance Tips for Senior Drivers

Following a few simple tips and taking these measures will... Read More

Are You Running the Risk of an Uninsured Business? Beware & Get Business Insurance

Human life is precarious and so are the activities they... Read More

Term Life Insurance Quotes for Singles

Term life insurance quotes are rarely a concern of single... Read More

Tips for Choosing a Life Insurance Company

More than 150 insurance companies offer thousands of life insurance... Read More

How Much Car Insurance Should You Buy?

Car insurance is one of the most dreaded chunks in... Read More

Life Insurance Fears Post the London Bombings Tragedy

Following on from the tube train and bus bomb attacks... Read More

Life Insurance Careers

Do you like to spend all day being sitting around?... Read More

The Life Insurance Policy and What You Need to Know Before You Buy

Are you looking to buy a life insurance policy? Well,... Read More

Life Insurance Basics

One of the most important things you can do as... Read More