Term life insurance is highly regarded to be the most straightforward form of financial protection for you and your family. The idea of it really is very simple . . . you usually pay monthly premiums (or annually if you’ve got the dosh) and your family is protected for the term of the life insurance. There is often a choice of “term” available for term life insurance, maybe 10 years, 20 years, 30 years or even more.
So why do people have term life insurance? What is it used for? Well, there are loads of different reasons people take out term life insurance policies, maybe;
- to cover short term needs and debts
- to help provide for loss of income
- to provide a little extra insurance protection whilst your children are small
- to provide long term insurance protection to maybe help pay off the mortgage or for a college education
How To Buy Term Life Insurance
As with most things these days, there are a couple of ways in which you can search for, choose and then buy term life insurance, you can either speak to an insurance agent, or you can take the easiest route which most people seem to prefer, you can buy term life insurance online, at home, without even having to put your coat on and leave the house.
When you search for term life insurance online, however, there are a few steps which you need to take, and a few decisions which you need to make.
- How much Term Life Insurance cover do you need – that’s the big question really. You need to figure out how much money your family will need to be secure if you suddenly disappeared, and for how long they would need the protection. If the main breadwinner of the family suddenly died and could no longer provide for them it can make an already painful and emotional situation many, many times worse, for a long, long time.
- Compare Term Life Insurance quotes – there are plenty to choose from, so once you’ve decided how much term life insurance cover you need then it’s time to get in a few quotes to compare. Make sure that you are comparing “like for like”, and remember to answer all of the questions asked on the quotation forms truthfully, it’s no good claiming to be a non-smoker whilst puffing away at home filling in your term life insurance application form – they have ways and means of finding out.
- Fill out a Term Life Insurance application – again, make sure that you tell the truth, the whole truth and nothing but the truth, otherwise your term life insurance policy will not be valid anyway and you’ll have wasted your monthly premiums.
- Medical examinations for Term Life Insurance – many insurance companies require applicants to undergo a medical examination before agreeing to a Term Life Insurance policy to help the insurance company to verify the insurability of the applicant. This can often take place at home and is sometimes quite thorough, sometimes not – depending upon the amount of Term Life Insurance you want and the company you choose. **
- Accept your Term Life Insurance Policy – at this point in the proceedings the insurance company you have chosen may send a contract for you to sign by mail, they may e-mail you a copy to sign, scan and return or you might be able to do everything online. It really does depend on the Term Life Insurance policy and insurance company you choose.
** We had the medical for a term life insurance policy just a couple of months before our son was born . . . you can imagine how it went – weight . . . waist measurement . . . hold on a minute, I’m hoping to lose a few pounds – and inches – in the next few weeks. Please don’t forget to mention it on the Term Life Insurance form.