Equote - David Livingston

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 benefit as well as the investment. In case of the cash value policies, the carriers will retain the accrued cash value and hand out only the death benefit. 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

If you study a quote form, you will realize that: the amount of quote, on which the actual rates are based, depend upon the factors given in the quotes. 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.

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. Tobacco use 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. 

One of the greatest aspects of these online policies is instant coverage. While a fully underwritten policy takes four to six weeks to complete their underwriting process, these policies provide the coverage almost instantly. There are different categories of instant life insurance policies available today. The simplified issue policies for example require you to answer some health questions, but for the guaranteed benefit policies you dont have to do even that. Naturally, the later one is slightly more expensive than the other. In fact, the guaranteed policies are bought only by those who have earlier been refused coverage, but need it all the same. 

Before going to buy any policy, first you decide the coverage amount and coverage term. Ideally, the amount should replace the money you bring in every month which may not always be possible. If you are not sure, multiply your annual income minus tax by fifteen; you should also consider your assets, liabilities, living standards as well as the aspiration of your family before you come to any definite amount. As for coverage term, it can be until you are sixty-five or until you are ready for self-insurance. Dont forget that the cost of insurance depends on these factors also.