Author: Darren Yates
Like many things you purchase, term life insurance begins with the quote. You provide some basic information and a person or a computer system churns out a base price for a term life insurance policy. Whether online, in person, or on the phone, you can receive a term life insurance quote instantly.

However, if you want a more accurate idea of the price you’ll be paying for your term life insurance, it’s really important to understand all that this type of insurance offers.

Understanding term life insurance

Term life insurance typically is the most uncomplicated of the various insurance packages. Term life insurance remains in effect for the entire term that was selected by the insured.

Term periods generally range between 1 year and 30 years. If the insured dies within the term that was purchased, the individual or individuals that are named as beneficiaries on the policy receive the death benefit amount that also was chosen at the time the policy was purchased.

For example, when you purchase a 20-year term insurance policy with a specific payout or face value, your beneficiary will receive that amount, in full, if you die anytime during that 20-year period.

Any payout is subject to whatever restrictive clauses are in the policy, such as suicide exclusions. And the payout would occur provided you did not allow your policy to lapse.

If the 20-year term passes and you do not die, your term life insurance policy simply would expire. If your term life insurance quote included a renewal clause which you had written into your actual policy, at the end of the term you would be able to renew the policy.

You can usually do so without having to go through another round of medical history review. The only real drawback is that if you did take advantage of the renewal feature, you’d likely have to pay a much higher premium because you would be 20 years older than you were at the time of original purchase.

How to compare various term life insurance quotes

When you are comparing term life insurance quotes, make sure you are making an equal comparison. Specifically, some quotes will include at no extra charge additional benefits such as accelerated death, accidental death or a disability waiver of premiums.

Other quotes may either omit these benefits or make them available as a rider for which you’ll pay an additional cost.

You might also find that some term life insurance quotes include a conversion to permanent policy opportunity, which you usually are able to take advantage of within the first few years. Again, some companies won’t require a re-evaluation of your health while others will.

The bottom line is that life insurance is a very competitive business and there are companies that will low-ball their term life insurance quotes in order to attract your business.

Author: Darren Yates

Cheap life insurance is out there, if you know what you’re looking for. That’s why it’s important to do your research. You’ve got to educate yourself on the various types of life insurance policies that are available, including additional benefits that may or may not be offered.

Plus, you should make an effort to research your options as they relate to the various life insurance companies. It’ll be to your advantage to know what you want and need in terms of cheap life insurance before you start getting quotes.

Term vs. whole life

The first big determinant of cheap life insurance is the type you select. Term life insurance will almost always cost you less than whole life insurance. Term insurance is purchased for a specific period of time, for a specific face value.

Whole life, as the name implies, provides life insurance benefits for the rest of your life, whether that ends up being 10 years or 50. Whole life insurance policies generally have a cash value aspect meaning you’ll pay more in monthly premiums. The amount over and above that which is necessary to cover the premium is used for investment purposes.

Even if you do choose whole life insurance, your costs can be lower if you look around for a policy that has lower fees. The fees you want to pay attention to aren’t really fees, they’re commissions. Commissions can eat away at the cash value of your whole life policy. When researching, look for the term, “low load” as that generally means lower fees.

But be careful. You’ll find this type of life insurance won’t be cheap if you withdraw funds. When the policy’s cash value is greater than the premiums paid, you’ll likely have to pay taxes. A loan against the cash value may have the same end result.

Think long and hard about this type of life insurance policy; it’s not meant to be a substitute for a more traditional type of investment plan. And the premiums you’ll pay will be hefty.

Steer clear of guaranteed issue policies

Also when looking for a cheap life insurance policy, you won’t find it in a “guaranteed issue” type of policy. These policies are guaranteed to cover anyone, regardless health. No medical exam is required but that convenience comes with a big price tag.

Because the life insurance company is taking a substantial risk by insuring individuals without knowing their state of health, premiums will be high. If you’re healthy, opt instead for a traditional term policy.

If you’re not healthy, taking steps to improve your health may help you find cheaper life insurance. Lowering weight, blood pressure, and cholesterol levels are beneficial steps. Kicking the nicotine habit is also advisable. The better your health at the time of application, the cheaper your life insurance premium should be.

Author:Tyson J Stevenson
Term life insurance is a temporary life insurance covering specific period of time. In this type of policy the insured or the owner pays a premium for a period. The insurance company provides monetary benefit to the beneficiary in case of death of the insured during that period. It is the cheapest type of life insurance available to the general public. Usually the benefit received on death of the insured is income tax free.

There are four parties in term life insurance. The owner is the one who pays the premium. The Insured is the one on whose death, a death benefit(face value) will go to the beneficiary. The beneficiary is one who will receive the proceeds of insurance on death of the insured. The insurer is the company providing the insurance. Premium is the monthly or periodic payment made by the owner to the insurance company.

For instance, Amanda pays monthly 50 dollars to ABC Company for insuring the life of Bill (her husband) for a period of 10 years. In case Bill dies during the 10 years, ABC company will pay 6000$ to Jack (son of Bill and Amanda). Here the insured is Bill, the owner of the policy is Amanda, the beneficiary is Jack and the insurer is ABC Company. The premium is 50$ and the face value of the insurance is 6000$. In case Bill does not die during the 10 years, ABC Company will not be liable to pay any money to any of the parties involved. Often the owner and the insured are same. That is a person buys a policy to cover his own death and nominates a beneficiary.

Term life insurance is a legal contract with terms and conditions and assumed risks. Sometimes there are special provisions like suicide terms wherein on suicide of the insured there is no benefit accrued to the beneficiary. Term life insurance is based on two concepts, theory of diminishing responsibility and Buy Term and Invest the Difference (BTID). In Term life insurance the responsibility or liability of the insuring company reduces as the policy reaches its maturity. Term life insurance is the cheapest type of insurance policy available because there is no cash value at the end of the period. Studies have shown that the mortality rate in term life insurance policies is as low as 1%. Hence the concept of BTID. Rather than going for permanent life insurance (where on the expiry of period the owner will accrue some cash benefit and there is a savings component in it) it is considered cheaper to buy term life insurance and take care of the savings components by investing in other areas. With the present market giving good returns on investment, buying a term life insurance is a more attractive option than permanent life insurance. Term life insurance is available for a period of 5, 10, 20 years etc. As the age of the insured increases the premium increases. The premium is calculated based on mortality rate which is usually dependent on age, sex and whether the person uses tobacco. Most companies provide annual renewable term where in the term can renewed annually however the premium increases annually.