 Author: Terry Edwards
Article:
Have you been contemplating purchasing life insurance? Have you
been thinking of getting a life insurance quote online, but
you're just not sure of all the terminology? While the Internet
makes it easy for anyone to shop around, how does it work for
buying insurance?
Is it even safe to buy life insurance online?
Here are the answers to those questions and a few others that
may help you better understand how getting a life insurance
quote works on the Internet.
Is Life Insurance Online Cheaper Than At An Office?
Yes, it is possible to life insurance online that costs less
than you may find at your local insurance agents office.
But,
you need to remember that every life insurance companies rates
are governed by law, so rates will generally be the same online,
as well as offline.
If you do find a big rate difference, your
red flags should go up. Be sure to check them out first before
purchasing any type of policy.
Will My Life Insurance Quote Be Accurate Online?
Online life insurance quotes are usually pretty much correct.
But, with that said, remember that the actual rate will be
determined on your medical history.
Since you will likely be
asked to have a doctors exam, this information will also be used
in determining the actual rate you will be charged.
Is Buying Life Insurance Online Safe To Do?
It most certainly is.
There are State and Federal laws that
require any company or agent that sells insurance of any type to
be licensed in the state where you live.
You can always call the
life insurance company and discuss it with them, or call states
insurance department.
Will I Have To Take A Physical When Buying Life Insurance Online?
Yes, this works the same way as it would if you were to go to
your local insurance agents office and buy life insurance. The
same set of rules apply online as they do offline.
Which Companies Are The Lowest?
Just about every life insurance company will have similar rates,
but you can search online and find many sites that will provide
detailed comparisons between several different companies.
Many
of these sites will show you 10 or more companies rates for the
same type of policy.
Can My Rates Ever Go Up In The Future?
If you are purchasing whole life insurance or universal life
insurance, your rates can not be raised in the future.
If you
are buying term life insurance online then yes, your rates would
go up if you were to renew the policy after the policy expired.
About the author:
You can find out more about getting a Life Insurance
Quote Online as well as all other types of life insurance on
our website at http://Life-insurance.infofroma-z.com
Buying life insurance is an easy way to protect your family after you're gone. If you know what to look for, you can get great coverage at a price you can afford.
Why buy life insurance?
Topping the list of reasons to buy life insurance is the financial protection life insurance offers. If you're single and just starting out, you may not need life insurance. But as you take on more responsibilities and your family grows, your need for life insurance increases. The proceeds from a life insurance policy can replace the income lost to your family upon your death. You might also want to buy life insurance to pay off debts and expenses, leave money to charity, and cover final and estate expenses.
Choose term or cash value
There are two basic types of life insurance: term life insurance, which provides life insurance coverage for a specified period of time (the term), and cash value (permanent) life insurance, which combines a death benefit with a cash value component. Cash value insurance offers lifetime protection, while term insurance may be the most affordable option if you're buying life insurance mainly for the financial protection it offers, and your need for life insurance is temporary (until your children leave the nest, for instance). Some term policies (called "convertible") will permit you to exchange the term life insurance policy for a permanent one at some point.
Decide how much coverage you'll need
The amount of life insurance protection you should buy depends on how much income your survivors will need, how much you own and owe, and the amount of other life insurance available to you. If you're married, both you and your spouse should consider buying life insurance. One of the easiest ways to estimate how much life insurance protection you should buy is to use a life insurance needs calculator.
Pick a number between 1 and 30
Term life insurance is usually offered for periods ranging from 1 to 30 years. Consider choosing a term that matches your need for life insurance protection. For instance, if your main reason for buying life insurance is to protect your 7-year-old twins until they're out of college, you'll want to buy a policy with a term of at least 15 years.
How much will it cost?
How much you pay for life insurance will depend on a number of risk factors, including your age, your health, whether you use tobacco, your family health history, and the type and amount of life insurance you're buying. Keep in mind that the premium you're quoted initially will increase later. For instance, when you buy term life insurance, rates are guaranteed only until the end of the term (annually for annual renewable term or at the end of a specified number of years for level term). While most life insurance policies can be renewed at the end of the term, you'll pay a higher premium for coverage.
Shop around
When comparing quotes for life insurance, make sure that the insurance coverage you're comparing is similar. And remember, any policy that you buy is only as good as the company that issues it. Find out what rating the company has received from major ratings services, such as A. M. Best or Standard & Poor's. These companies evaluate an insurer's financial condition and claims-paying ability. The company giving you a quote should provide you with this information. You can also contact your state's department of insurance to find out more about an insurer's record.
Submit an application
Once you're ready to purchase a life insurance policy, you'll fill out a life insurance application that contains questions about your current and past health history and lifestyle. You'll generally be required to take a medical exam, arranged and paid for by the insurance company. The answers you give on your application, along with the results from the medical exam and your past health history, will help the insurance company determine whether to offer you a policy, and if so, at what price.
Learn the lingo
Maybe a life insurance contract isn't as exciting as a best-selling novel, but read it anyway. Policy provisions, the amount of benefits, the premium, and other charges you'll pay will be listed along with other important information such as the beneficiaries you've named and the premium guarantee period. Make sure you understand everything in the policy. Under the laws of your state, you may have a "free look" period (typically at least 10 days) during which time you can cancel the policy without penalty.
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