When it comes to finding the lowest-term life insurance, one of the best things you can do is to start early. Even with a rough economy, you can’t afford to skimp out on life insurance. Your family depends on you; at the very least, you don’t want them to be burdened with the funeral expense.
Term life insurance will offer the highest payout with the lowest premiums. You can get a policy that will be good for a certain term, hence the name. The term can vary greatly, but it’s usually from a few years up to 30 years. The premiums will remain the same for the life of the term, so that’s one less thing you will have to worry about. The payout at the time of your death should be tax-free to your beneficiary, though make sure to ask your tax accountant or insurance agent to be sure.
These policies will generally only cost $20 or less a month and that is for a substantial amount of insurance, as high as $250,000 which can go a long way to helping your family move on after your death. For most people, that would be enough to pay off the mortgage or help out with college for the kids.
To find the best combination of low premiums, high payouts, and the best features, it’s a good thing to start your search online. You can quickly and easily compare policies to find the lowest-term life insurance. Just make sure that you are comparing like with like. There is no point in comparing one policy that pays out $100,000 over a 10-year term to one that pays out $250,000 over a 20-year term.
Some companies will require a health screening; others will not. Also, your age when you get your policy will determine the premium. The older you are and the more likely the insurance company will have to pay out sooner, the higher your premiums will be.
To save money on the premiums, ensure you don’t get oversold. You don’t need a lot of life insurance if you don’t have kids, or you don’t have a mortgage, or your spouse is earning good money, etc. You only need enough life insurance to help your family adapt to the changes if something happens to you. So if are married but don’t have kids and your spouse works too, and you don’t own your own home, you don’t need a half-million-dollar policy.
If you’ve got kids, a big mortgage, and your spouse doesn’t work outside the home, you’ll want to get enough coverage to help with college costs, help pay off the mortgage, and possibly help pay for your spouse to go to school. In short, you’ll want to have more coverage.
One way you can use term policies extremely effectively is by buying them when you are young at some of life’s major events. As a young couple, if you buy a house, it may make sense to purchase a term policy for the amount of your mortgage and for that duration. Another way to use a term policy is with your kid’s birth and the possible funding of their education if you pass away. When they are born, you can take a policy out to cover a portion or all of the projected college costs. Term life is a good risk management tool that most young and healthy people can deploy as part of their financial planning needs to help protect loved ones. If you are looking to obtain a low-cost policy and are unsure where to start, Ethos is with whom I purchased a policy for my wife. Like most sites, they compare different life insurance companies to get you the right policy. When you use term life to manage risks, it is important to remember that you do not need a single large policy; rather, you can use multiple policies to cover specific needs.
Pay attention to this important part of your financial planning. It’s best to talk to a professional so they can answer all the questions you need when it comes to finding the best and lowest-term life insurance that will work for you. If you live in or near the metro-Nashville area or middle Tennessee, feel free to contact me directly. If you live outside this area or wish to work with someone close, consider a fee-only Registered Financial Consultant (RFC) near you.
