Level Term Life Insurance Quotes

Level term life insurance is the most basic and affordable type of life insurance available, and consumers who get and compare level term life insurance quotes will quickly realize this policy is the cheapest life insurance you can buy. Level term life policies offer pure life insurance, have term periods that may be as short as 3 months or as long as 30 years, fixed life insurance rates and provide a death benefit if the insured person should die prematurely and leave behind financial obligations. A level term life insurance quote can help an adult, parent, or senior citizen decide if this type of life insurance is the best policy for his or her family.

What Is Level Term Life Insurance?

Level term life insurance is temporary life insurance protection that pays a death benefit if the insured person dies within the policy term, and can be purchased in increments of 3 months or 5, 10, 15, 20, 25, or 30 years, with some life insurance companies even offering 40 year term life insurance. Term life insurance rates are fixed and based on the age, weight, and health of the insured person over the entire term of the policy.

Because term life insurance companies take on more risk when insuring an individual for a longer period of time, especially due to the higher risks of developing medical issues later on in life, life insurance rates are higher for policies with longer terms, making a 5 year term life insurance policy cheaper than a 30 year term policy.

However, if policyholders must renew their 5 year term life policy and buy another one, term life insurance rates will increase on the new policy. With term life insurance, the death benefit is not paid if the insured person does not die within the term of the policy and the insured person must usually seek new life insurance coverage when the policy expires.

Pros and Cons of Level Term Policies

Every life insurance policy has pros and cons, and consumers must compare the advantages and disadvantages of each term life insurance plan before making a decision to purchase coverage. The primary benefit of level term life insurance is the low cost and rates.

Unlike permanent forms of life insurance such as whole and universal life insurance, term life insurance does not accrue a cash value and premiums paid into the policy are retained by the insurer if the policyholder does not die within the policy period. Because term life insurance does not offer a savings account or investment component and there is no guarantee that the death benefit will be paid out, life insurance companies can offer term life policies at the cheapest rates.

However, level term life does provide the same insurance protection for families at more affordable rates than permanent life insurance policies, and a level term life insurance quote will demonstrate the affordability and difference in rates between term life insurance and whole or universal life insurance. Level term life insurance can be the best life insurance policy for young families or adults who need insurance coverage in case of a tragic death, but have a budget and need cheap life insurance rates.

Disadvantages of Level Term Life Insurance

Unlike permanent life insurance policies which remain in force for the insured person’s lifetime, assuming premiums are paid and the policy remains in good standing, term life insurance expires at the end of the term period and the insured person must usually seek new life insurance coverage at higher rates. This can mean reapplying and taking another medical exam, which may reveal future health issues and problems that will cause your risk and therefore term life insurance rates to increase. Some level term policies are available with a renewal option, allowing the policyholder to renew term life insurance without repeating the application process.

Because there are several different types of life insurance policies available to consumers, a level term life insurance quote comparison is essential to finding and buying the best life insurance for your needs, whether that is level term, renewable, convertible, or another term life insurance plan.

Why Buy Term Life Insurance?

Many families are unable to afford enough life insurance coverage with pricier permanent life insurance policies. In most cases, families, adults or seniors can afford all the protection they need with level term life insurance, buying the recommended 5 to 10 times their annual salary to provide adequate coverage for their families.

Though the amount of the death benefit you choose depends on your income vs. expenses, such as living expenses, mortgage payments, credit card and medical bills, education costs, and number of financial dependents, it is important to provide a family with all the financial support they would need if a wage earner died prematurely. Consumers can find out just how affordable term life insurance can be with a free, instant level term life insurance quote.

Free Life Insurance Quotes

MyLifeInsuranceQuotes101 offers free life insurance quotes from multiple top ranked life insurance companies. Individuals simply complete a short form with basic rating information, the amount of life insurance coverage (death benefit) they need, and can instantly receive term life insurance quotes.

The younger and healthier a person is when they apply for life insurance, the cheaper their life insurance rates and costs will be, so it is smart to get a term life insurance quote as soon as possible and compare the low rates before buying a policy. Even if you do not purchase life insurance now or in the immediate future, it is important that consumers understand the financial options available to them by comparing life insurance quotes, rates, coverage, and companies.

Level term life insurance is a good choice for many families since term life policies can provide the right amount of life insurance protection at the cheapest rates. An instant level term life insurance quote can help families compare affordable rates and find the best life insurance coverage for their needs. Just enter your zip code now to begin a free life insurance quote and see how cheap your term life insurance rates could be.

Mortgage Life Insurance

Mortgage life insurance can be complicated with all its terminology and variations, not to mention the other types of life insurance available and their pros and cons to evaluate. There are life insurance policies for adults and children; there is coverage for short periods of time or an entire lifetime; and there is even life insurance that comes with an interest-earning cash savings account. However, in the tough financial times that many people are going through today, there is another variation that is gaining popularity: mortgage life insurance.

What Is Mortgage Life Insurance?

In simplest terms, mortgage life insurance guarantees that if you pass away while covered, your home will be paid off. A home is likely the single largest purchase most families will ever make. Mortgage life insurance can ensure that your loved ones are financially cared for after your death. Not only will they be able to keep their home, but they will also have the peace of mind that comes with a fully paid mortgage and some sense of security.

How It Works

Mortgage life insurance works to ensure that if a policyholder passes away, a sum of money sufficient to pay off their mortgage will be paid out by the insurance company.

Some of the stipulations of mortgage life insurance include the fact that the coverage amount has to equal the outstanding mortgage debt, and the date of termination on the policy has to match the date of final payment on the mortgage. The insurer is responsible for calculating the rates at which the coverage must decrease to match the value of the outstanding debt.

Life Insurance vs. Mortgage Protection Insurance

Many people make the common mistake of confusing the terms mortgage life insurance and mortgage protection insurance. However, the two are actually very different.

Mortgage protection insurance is not a form of life insurance, and lenders only require home buyers to purchase it before obtaining a loan if they do not offer a down payment of 20%. The purpose of mortgage protection insurance is to protect the lender, but the purpose of mortgage life insurance is to protect you and your family, so it is important to note the clear distinction between the two types.

Obtaining A Mortgage Life Insurance Policy

Most home buyers, during the process of filling out the loan paperwork for the mortgage, will be offered the chance to purchase mortgage life insurance at that time. Home buyers can of course refuse the insurance at that time.

However, there will be a number of waivers to sign in order to verify the denial of coverage at that time. This is to show an understanding of the risks involved in taking out a mortgage, including passing away before it is paid. Mortgage life insurance can also be purchased privately by homeowners.

Pros

Every type of life insurance comes with a list of pros and cons, and mortgage protection is no exception. One of its most notable advantages is the peace of mind it provides you and your family. With the knowledge that the mortgage will be paid for after your death, a weight is lifted that can allow you to better enjoy life. Your dependents will have a home and a valuable asset that can be sold if needed.

Another distinct advantage is the minimal underwriting involved in the application process. In most cases, mortgage life insurance applicants can obtain the coverage without undergoing a medical examination.

Cons

Unfortunately, there are just as many disadvantages to mortgage life insurance. For example, a policy decreases in benefits. The premium payments stay at a fixed rate, but the benefits are decreased as needed to match the mortgage demands. This means you can not rely on this type of coverage for complete financial security.

Secondly, unlike other traditional policies, a mortgage insurance benefit does not provide any financial help to the beneficiaries at all, other than paying off the mortgage. A second type of policy would be needed for income replacement.

Who Should Consider Mortgage Life Insurance?

As with most types, a mortgage policy could benefit some people more than others. Some of the deciding factors include the amount of the outstanding loan, the value of your home and assets, and the current state of your health.

Since the medical underwriting is minimal, mortgage life is ideal for anyone who wants to make sure their home gets paid off upon their death, but is unable to get any other kinds of life insurance coverage due to age or pre-existing medical conditions. If you are young and healthy, a traditional term life insurance policy is recommended.

Compare Quotes Online

Finding the best, cheap mortgage life insurance does not have to be a hassle. We provide consumers instant life insurance quotes online from the best companies in the U.S to ensure you get the lowest mortgage life insurance rates. Begin comparing different types of policies, coverage options, and carriers to find the best and most affordable coverage for your financial needs.

Long Term Life Insurance

While term life insurance is considered temporary, the term periods can extend from 1 to 20, 25 or 30 years, making term life policies a long term commitment. Although long term life insurance quotes are higher than those for shorter terms, long term rates remain fixed over the life of the insurance policy. This makes long term life insurance a better investment in the long-run because short term policies must be renewed or replaced more frequently and the premiums on each new renewal will be higher than those of the original policy.

Because life insurance premiums are cheaper when you are young and healthy versus older with medical issues, long term life insurance is best purchased at your earliest convenience, when rates and coverage are cheap and affordable.

Buying a long term life policy with a 30-year term may mean you never have to purchase another policy again, and your premiums will stay low. Learn more about term life insurance to determine if it is the best protection for your needs.

What Is Term Life Insurance?

Term life insurance is temporary or pure insurance that remains in effect for the time period specified in the policy. Your premiums and the amount of the death benefit are fixed and do not change over time. Term life insurance is available in periods from 1 year to 5, 10, 15, 20, 25 or over 30 years, and policies of more than 20 years are considered long term life insurance.

Although the term life policy will eventually expire, if the insured person does not die, long term life insurance covers an individual’s needs for a large part of his or her life. If your coverage expires as a senior, you will likely have significantly lower insurance needs then anyway.

If the policyholder does prematurely die while the term life insurance policy is in good standing, your insurance company will pay out a death benefit, also known as the face value of the contract. Death benefits can range from $50,000 to more than one million dollars, and how much life insurance you need plays a huge role in the cost of your protection.

Pros and Cons

The cheap fixed life insurance rates are the primary advantage of long term policies. If term life is purchased when the insured person is young, the premium rates are lower and remain the same as the person ages. While a 15 year policy offers cheaper term life insurance rates right now, when the policy has to be renewed 15 years later, the additional risk associated with your older age will place you in a higher risk group with considerably higher premiums for the same death benefit. This means that buying 30-year term life insurance at a young and healthy age will ensure lower rates for a majority of your life, for example, 30 to 60 years old.

On the other hand, an individual’s needs for life insurance changes over time. Marriage, the birth of a child, purchase of a home, medical bills, business or personal loans, and other financial burdens can increase the need for life insurance. Term life insurance has a fixed death benefit which may not be the right amount to meet future protection needs.

It may be necessary for you to buy additional coverage to supplement an existing term policy. However, those families and adults whose needs have decreased may find they are paying for more insurance than is necessary, which can be especially difficult if you’ve retired early and are on a fixed income.

Term Life Insurance Quotes Online

The best way to find out how affordable long term life insurance can be is to compare instant quotes from the best companies. For this reason, we help consumers compare rates, plans, and coverage options from different carriers, allowing you to check out premiums for 10 year vs. 30 year life insurance policies and determine the best and cheapest coverage for your needs. Life insurance quotes are instant and free when you complete a short form with rating information to get a side by side comparison.

Buy Term Life Insurance

Long term life insurance is especially affordable and the best type of term life insurance for young families since it can provide families with protection from the time dependent children are born until they graduate from college.

Without proper financial planning and life insurance, the premature death of a parent can leave spouses and children without the financial support they need. Life insurance offers that income-replacement protection, guaranteeing your family’s financial stability and well-being.

Cheapest Term Life Insurance

Many families with limited incomes, budget, and assets believe they cannot afford life insurance, even the cheapest term life insurance, or simply don’t need it at all, when the truth is they cannot afford to be without it in the case of a tragedy. If the breadwinner of the family or one of the wage earners die prematurely, these families are left to struggle with debt from mortgage payments, credit card and medical bills, living expenses, funeral expenses, and education costs, and may not be able to survive on their current savings and assets. Cheap term life insurance is an affordable way to provide families with the life insurance policy and coverage they need.

There are many ways to get inexpensive term life coverage, like choosing the best type of policy for your needs, the death benefit amount, and lastly, getting instant life insurance quotes online to compare rates, coverage, and companies, helping you find cheap rates you can actually fit into your budget.

What Is Term Life Insurance?

Term life insurance is also called pure life insurance because it does not have a savings or investment feature like most permanent policies. Term life coverage is temporary, although policies are available for periods from 5, 10, 15, 20, 25, or 30 years.

If the insured person dies within the term period, the stated death benefit is paid to survivors. If you do not die, the company retains the premiums and the policy expires, requiring you to purchase another cheap term life insurance policy to continue coverage. This reduced risk to the life insurance company is the reason why carriers are able to provide lower rates compared to whole or universal life insurance.

Term vs. Permanent Life Insurance

Whole life insurance and universal life insurance are types of permanent policies that never expire or have to be renewed as long as the fixed premiums are paid and the policy remains in good standing. Whenever the insured person dies, whether it is at age 35, 65 or 95, permanent life insurance is guaranteed to pay the death benefit. For this reason, cheap term coverage is priced much lower than permanent policies because the insurer may never have to pay the death benefit for term protection.

Potential applicants should compare the pros and cons of term vs. permanent life insurance before purchasing a policy. For example, universal and whole life policies have fixed premiums for the duration of the policy, whereas level term life insurance is the only term plan that has a fixed premium. If term life expires after 30 years, consumers will likely have their premiums increase substantially the next time they renew their coverage.

Other benefits of permanent life insurance include the savings and investment features of each policy, allowing you to build or accrue a cash value to be used for retirement, a down payment for a house, or collateral for an interest-free loan. On the other hand, term life insurance cannot be used as an investment, which is why term life policies are called temporary or pure protection.

Why Buy Term Life Insurance?

If an income earner dies while supporting financial dependents, not only are the dependents deprived of his/her income, they may also be left with unpaid debts, loans, bills, and funeral expenses. Even the cheapest term life insurance provides cash for dependents if a tragedy occurs so they are not burdened financially.

Not everyone can afford the protection of permanent life insurance, but the cost of a term protection is cheap and affordable even for families on a budget, making it the most popular one available.

Free Insurance Quotes Online

To help consumers compare premiums and different types of policies, we offer free and instant life insurance quotes online for all policies. These term life insurance quotes are provided by the best life insurance companies in the country and allow you to review rates and policy options in your search to find the best life insurance for you.

Applicants requesting a term life insurance quote must complete a short form with basic rating information and the amount and kind of policy they are interested in. The rate quotes are available instantly, making it free and simple for you to compare rates and find cheap term life insurance.

Benefits of Buying Life Insurance Online

Buying term life insurance online actually saves money compared to buying through an agent or broker since agents are paid a commission, which is often added to the cost of your policy. By purchasing online, the agent’s commission fee is eliminated. Automatic payment plans through a checking account or credit card add to the convenience of buying life insurance online and result in you getting discounts.

In addition, insurance companies offer multi-policy discounts when consumers buy more than one type of insurance through the same company. For this reason, consider buying auto, health, life or home insurance with the same carrier.

Cheapest Term Life Insurance

For consumers who do not believe they can afford life insurance, cheap term life insurance can provide the most protection at the lowest rates. Free life insurance quotes can help individuals find the best coverage they need at prices they can easily afford. You may be surprised at how cheap and affordable term life insurance can be for the amount of coverage you need.

Best Term Life Insurance Quotes

Everyone wants the best term life insurance quotes, but many consumers are unaware that there are steps they can take to find cheap rates, such as comparing quotes online. By taking the necessary measures to improve their health, diet, lifestyle, and increase their lifespan – all factors life insurance companies take into consideration when calculating rates – consumers can get the best term life policy and lower their monthly premiums substantially.

Additionally, prior to purchasing term life insurance, consumers should get multiple free life insurance quotes online to compare policies, coverage options, insurance companies, and rates, thereby ensuring they have done their research and are guaranteeing themselves the cheapest premiums on the best plans.

No Smoking

People who smoke have a shorter life expectancy than those that do not smoke, so non-smokers get better life insurance rates than smokers. Those who quit smoking increase their life expectancy and decrease their monthly premiums. There is an added benefit for smokers who quit, they reduce their risk of serious health problems and lower their monthly health insurance premiums, too.

Losing Weight

Obesity shortens lifespan, perhaps even more than smoking, so individuals who are overweight will not get the lowest prices. Obesity is associated with chronic diseases like diabetes type II, coronary artery disease, congestive heart failure and clinical depression. Reducing weight increases lifespan and lowers the odds of suffering from a chronic medical condition.

Getting Regular Exercise

Individuals who exercise regularly, for at least 30 minutes 3 times per week, improve their cardiovascular health and reduce their chances of suffering from coronary artery disease, heart attacks and strokes. Good health habits will get the best term life insurance quotes at any age.

Similarly, non-smokers of average weight who exercise regularly will get the best possible rates on both life insurance and health insurance. People with good health habits save hundreds, perhaps even thousands of dollars over a lifetime with cheaper insurance rates and medical bills, not to mention, simply living healthier, and happier lives.

Annual Medical Check-ups

Regular medical exams are another way for individuals to increase their life expectancy since any illness is likely to be discovered early when it can be treated. Getting regular medical exams lowers the risk of death from many types of cancer which can be successfully treated if discovered early. Annual medical exams improve overall health, and anything that increases life expectancy can help you save money.

Life Insurance Rates By Age

Since the younger a person is, the lower his/her life insurance rates will be, planning ahead and buying life insurance at a young age will guarantee the best quotes. Life insurance rates are based on the chances that a person will die during the term of the policy.

A 20 year old who buys a 30 year term policy is less likely to die within that time period than a 40 year old with 30 year coverage. So, if you want to get the cheapest premiums, buy when you are young and healthy.

Finding Discounts

While there are not many ways to get discounts on term life insurance, buying all your insurance needs from one insurance company can get consumers the best term insurance quotes. Bundling discounts, or multi-policy discounts, are given to individuals who buy several policies, like home, auto, health and life insurance, from one company.

The discounts can be as much as 25% on each policy so it pays to bundle insurance policies. It is smart to compare rates and coverage online from other companies, and then check with the company that insures your home or car for bundling discounts, using online quotes from other carriers in your negotiation.

Making Annual or Semi Annual Payments

When premiums are usually paid monthly, there is a finance charge included in the payment. Getting the term life insurance quote for annual or semi annual premiums can make rates cheaper and save a substantial amount of money. It is important that the premiums be paid on time to avoid any lapse in protection.

Group Policies

Group rates are usually lower than ones for individual policies, but group life insurance may have limits on the amount of insurance that can be purchased. Most group term life policies are bought through employers, professional organizations or associations like AARP.

However, it may be necessary to supplement group policies with additional coverage, whether it be term, whole, or universal life insurance. It is best to compare the rates for a term policy that has all the necessary coverage before buying a group policy that needs to be supplemented.

Buying The Right Amount of Coverage

While it is essential to carry enough term life insurance coverage to meet financial obligations, buying too much will not get you affordable rates, and may even burden your budget in the long-run. Wage earners should usually carry a policy equal to between 5 and 15 times their annual income, depending on age and financial circumstances.

To determine how much life insurance you need, you must examine all financial debts and liabilities, such as your home mortgage, credit card bills, medical expenses, education costs, and funeral expenses – essentially everything that is a cost of living.

Policyholders should consider subtracting the amount in savings or retirement, or have the option to simply leave that amount as a buffer for additional debts incurred in the future. The younger you are, the more coverage you may need. For example, in your 30s, most insurance experts recommend anywhere between 10 to 15 times your annual gross salary.

Compare Life Insurance Quotes Online

Comparison shopping is a great way to get the best prices and it is quick and easy to compare the best life insurance quotes online. Consumers should get life insurance quotes from multiple insurance companies so they can compare prices, coverage options, and terms and conditions. Consumers simply answer a few questions, and online quotes are instant and free. Even the best life insurance quotes are only estimates so actual rates may be higher or lower than the rates quoted.

There are many factors that affect premiums and individuals cannot change their occupation or their family medical history to get lower rates, but they can take steps to improve their health and increase their life expectancy. Anyone can get discounted prices by taking proactive steps to find the lowest rates for the protection they need.

Term Life Insurance Cost

Term life insurance costs the cheapest out of all other types of life insurance protection. Because term life insurance is temporary insurance for the term period and does not provide a cash value, savings account, or investment feature, if the policyholder does not die prematurely while the policy is in effect, the death benefit will not be paid out to beneficiaries.

Therefore, term life insurance costs are lower for insurance companies, who pass these savings onto policyholders in the form of cheap rates.

All life insurance companies calculate rates based on statistics that offer the probabilities that an individual will die within a certain time period, but the single most important factors are age and health, though other factors, like smoking or obesity are also part of the rating equation.

By applying for life insurance at a young age and making healthy lifestyle choices, applicants can lower their term life premiums.

Use of Alcohol and Tobacco Products

While moderate use or consumption of alcohol will not affect life insurance rates, alcohol or drug abuse not only increases rates but may make it impossible to buy term coverage. Use of tobacco products is known to cause cancer and other health conditions, such as cardiovascular disease, emphysema, and high blood pressure, which can reduce an individual’s life span and pose higher risk to the life insurance company who underwrites the term life policy.

Those who quit using tobacco increase their anticipated lifespan and are rewarded with cheaper costs. By quitting smoking, anyone can save money on their premiums, but the younger a person quits, the more he or she will save.

Health Risks and Obesity

Obesity is associated with the development of a number of serious health conditions, including type II diabetes and heart disease. There is also evidence to suggest that people who are obese may be at higher risk for certain types of cancer.

All of these health conditions are serious and can dramatically shorten a person’s lifespan, and insurance company doctors will note obesity during their examination of your health for underwriting purposes. For this reason quotes for obese individuals are higher than those for people with average weights. Losing weight through a well-balanced, healthy diet and regular exercise can get you drastically lower rates.

To see the difference in term life premiums between high risk and low risk applicants, consumers can compare life insurance quotes and see how much money they can save in premiums by being in shape and showing good health.

High Risk Life Insurance

Some activities, like sky diving, mountain climbing, and bungee jumping, have an inherent risk of serious injury or death. Individuals who regularly engage in high risk hobbies may be unable to get coverage at all, or can be required to purchase high risk life insurance. Those who do get life insurance will pay higher premium rates since their activities put them at much greater risk for premature death than others in their age group.

Any habit, activity or even occupation, which places an individual at a higher risk of premature death than the average individual in his/her risk category, will cause term life costs to increase significantly, and possibly make coverage impossible to afford.

Cheap Premiums With Discounts

In addition to making lifestyle changes, consumers can lower premiums by looking for discounts. The most common life insurance discount is a bundling discount which is offered to individuals who buy several different insurance policies, like auto, home and health insurance, with the same insurance company. As a rule, the company will offer a discount of up to 15% on each additional policy, which can make your insurance rates really cheap and affordable.

Other ways to get cheap life insurance include purchasing employer-subsidized protection, also known as group life insurance, which considers the reduced risk of a group of employees and makes rates cheaper for everyone. Look at your employee benefits before trying to buy private life insurance, since you may already have low cost coverage available to you.

Life Insurance Quotes

Another simple and painless way to lower your life insurance cost is to compare quotes on different policies from insurance companies to find the cheapest rates. Getting free, instant life insurance quotes from multiple insurance companies makes it easy and simple for consumers to compare policies, coverage, prices, and companies to find the best carrier for your needs.

To request a term life quote, an individual simply completes a brief questionnaire with rating information and the type and amount of coverage he or she wants. The life insurance quotes are no obligation estimates and are available instantly.

Cheap Term Life Policies

The single best way to get low term life rates is to buy protection as young as possible, since age and health is the biggest single factor affecting rates. However, there are ways for consumers to lower term life costs by making healthy lifestyle changes that not only result in cheap premiums, but improves your quality of life; though discounts and quote comparisons can help lower costs, too.

Compare Term Life Insurance

When buying term life insurance, it is easy to compare life insurance quotes, policies, and rates from different companies. Although finding a cheap premium is important, price should not be the only factor determining the best term life insurance for you and your family.

Because many term life policies exist, each with their own pros and cons, consumers should compare coverage, features, terms and restrictions of policies offered by different carriers, as well as the reputation, strength, customer reviews and ratings of the companies themselves to find the product that best satisfies your needs and goals.

In the following article, we will show you how to compare term life insurance so you end up purchasing the right policy, death benefit, and term period.

Choosing The Best

Some term life insurance policies allow policyholders to renew the policy at the end of the term without reapplying or undergoing another medical exam. Other plans allow you to convert to permanent whole life insurance. There are also term policies that give the insured the opportunity to alter the amount of the death benefit and premiums.

Because term life insurance can be a long term investment in the protection of your family should you prematurely die, consumers should compare life insurance policies and rates to find the best combination of coverage and low cost prices for their personal needs. See the following policies to get an idea of the types available to you should you choose to get life insurance quotes.

No Load – a term life policy that avoids upfront costs and fees, such as costs of underwriting, processing, the medical exam, and commissions. Consumers should, however, expect slightly higher monthly rates over the long term. Avoiding agents, brokers, and customer representatives by getting term life insurance quotes and buying a policy completely online can make your no load protection cheaper.

Decreasing Term – decreasing term life insurance coverage offers a decreasing death benefit over the course of the policy, resulting in cheaper premiums. This type is beneficial when coinciding with a business or mortgage loan or credit card payments (see credit life insurance). Because the principal is slowly being paid off, the policyholder will not require a full death benefit that covers the entire original loan amount, providing cheaper premiums as time progresses.

Guaranteed – guaranteed life insurance allows potential applicants to buy a policy without a medical exam from a doctor. Guaranteed coverage usually has certain terms and limitations, such as a death benefit up to $50,000 and the exclusion of paying out claims filed within a 2-year period of purchasing.

Level Term – level term life insurance is one of the most popular types purchased, offering fixed rates for the entire policy period, whether it be 10, 15, 20, 25, or 30 years.

Return of Premium – ROP term life policies refund all the premiums paid plus interest if you are still alive at the end of the term period. Since term life insurance does not offer a cash value or investment component, this lump sum payment of your premiums can act like the cash value of whole protection.

Instant – instant term life offers short term coverage when applicants need a small death benefit (usually less than $50,000) quickly and cheaply.

Renewable – because life insurance companies calculate risk based on age and health to determine rates, renewing an expired term life policy when you are older will result in higher costs. On the other hand, renewable term life policies offer policyholders the option to renew without applying again and undergoing another medical exam.

Convertible – convertible term life insurance, as mentioned previously, allows policyholders to convert a term life policy into permanent coverage. You have the option to convert to either whole or universal life insurance, each of which offers pros and cons.

Adjustable – adjustable life insurance offers policyholders the option to change their death benefit or premiums. Because how much life insurance you need changes with time, such as the addition of children to the family, fluctuations in income or salary, business loans, the purchase of a home, or medical bills, policyholders are able to lower or higher the amount of coverage, and thus able to change the cost of protection.

Compare Life Insurance Companies

Consumer websites like AM Best and JD Powers offer rankings and ratings for the largest and best life insurance companies based on certain criteria, including financial stability and strength, as well as customer service and reviews.

While it may be more difficult to get information about smaller state or regional carriers, your State Insurance Department and Better Business Bureau can provide information on any companies in the state. Consumers can also request a company prospectus for information on financial stability.

Mutual and Stock Companies

The day to day operations of stock and mutual companies are almost identical, but mutual companies are owned by their policyholders and stock companies are privately or publicly held corporations owned by shareholders.

Mutual companies may pay owners of certain types of policies dividends after the company pays out legitimate claims and still has cash/profit left over. Stock or public insurance companies pay dividends to stockholders who each own a piece of the company as shareholders.

There are excellent mutual and stock carriers and both offer essentially the same types of life insurance, but some individuals may prefer one provider over the other.

How Much Do You Need

The last step before getting free, instant term life insurance quotes is to determine how much life insurance you need. Experts and financial advisers recommend families buy between 5 and 10 times annual income.

Where you fall in that range is dependent on your individual assets and financial liabilities, such as your pension, savings and 401K accounts, mortgage payments, credit card bills, medical expenses, education costs, business loans, or any other financial obligations you may have. If you are not sure the amount you need, get a free price quote anyway to get an idea on the costs you may have if you get insured.

By getting multiple term life insurance quotes, consumers can comprehensively compare rates, coverage, policies, and carriers and have all the information they need before making a purchase. To get a quote online, you simply need to enter your zip code, choose a company, pick a death benefit, and complete a short form with rating information like gender, age, weight, occupation and basic health questions.

This basic information will tailor your contract specifically to your needs, getting you an estimate to comparison shop with. Since there is no limit on the number of estimates you may request, consumers can also compare the rates of different options, plans, and companies to learn about every kind of policy available in the marketplace.

Life Insurance Online

Once consumers have had an opportunity to review policies, providers and prices, and have made a decision on the one that addresses their needs, consumers can purchase contract online, though there is no obligation to do so if you are not ready.

Some coverage will require that the insured person have a medical exam before the policy is issued, but the rest of the application process can be completed from the comfort of home, avoiding agents, brokers, and customer representatives. It is often cheaper to purchase anything online since there is no agent commission which may add to the cost of your monthly premiums.

Term Life Insurance Company

Generally, life insurance companies underwrite and issue all types of policies including term, whole and universal life insurance. Though the best life insurance companies are very similar, there are certain factors that applicants should be aware of when seeking a carrier.

For instance, there may be little difference in the daily operations of insurance companies or the different term life policies offered, but there are two types of corporate structures for insurance companies that may affect the way in which they are managed.

We highly recommend you research the top life insurance companies to find customer reviews and ratings because life insurance is a long term financial commitment, and it is essential that you find the best, affordable coverage.

Stock or Public Companies

Term Life Insurance CompaniesMany life insurance companies are publicly-owned companies that are traded on stock exchanges. This means that many individuals called shareholders own a piece of the company and share in any profits the company makes.

Management of public insurance companies must answer to stockholders who receive company profits in the form of dividends. Policyholders are simply customers who buy the company’s product.

Mutual Companies

In mutual insurance companies, the policyholders each own part of the company. Buying a policy from a mutual term life insurance company is a little like buying stock in a publicly held corporation. Profits are split among policyholders in the form of dividends or reduced premiums when the company makes a profit.

Only those with certain types of policies, called participating life policies, receive dividend earnings, but all policyholders are eligible for cheaper rates when enough profit is generated. This means that policyholders have the option of receiving a dividend, or using the dividend to pay your monthly premium.

Best Term Life Insurance Company

Most policyholders are not able to tell the difference between public and mutual companies when they purchase coverage or make a claim. Since stock companies are in a position to raise more funds for expansion, some experts feel these life insurance companies are more financially stable, with higher ratings.

However, some of the oldest and largest insurance carriers in the country are mutual companies, like Northwestern Mutual, Mass Mutual, Penn Mutual, and Mutual of Omaha.

When choosing a term life provider, whether to choose a mutual or publicly-held company is really a matter of personal preference and will not really make a different in how your term life policy is administered or your claim is processed. The cheapest term life insurance for you can be offered from either a public or mutual company.

Check A Company’s Reputation, Reviews, and Ratings

Many term periods for life insurance policies are long term commitments, such as 20 or 30 years, so it is important for consumers to make sure the company they buy a policy from will be able to honor their commitment over many years.

We’ve comprised a list of the best life insurance companies from rating agencies like AM Best and JD Powers, who offer rankings for major insurers and rate their financial stability and customer reviews.

When buying life insurance from a particular company, individuals can request the company’s financial prospectus to get additional rating and financial information. State insurance departments are also a good source of information, especially for a small company who might not have a big name reputation.

Customer Service Reviews and Ratings

While most consumers have limited contact with their term life carrier, it is wise to check customer service ratings on consumer review websites after you get a quote and want to further research a particular provider

If a family member dies, policyholders want to know that the company will treat survivors with respect and pay their claim promptly to alleviate the financial strains an unexpected death can cause. If there are ever any disputes about payments, the policyholder will want to know he can speak with a company representative to resolve the issue.

Consumers should do some research when choosing a term life insurance company to assure themselves they are buying the best, cheap term life insurance from a carrier that will be there for their survivors should they die prematurely. There are many excellent choices, and by entering your zip code to compare quotes, coverage and companies, we can help you choose one of the best companies in the U.S.

Term vs. Universal Life Insurance

When it comes to types of life insurance and deciding which policy is affordable and best, consumers usually compare term vs. whole life insurance. For certain families, adults, and parents with specific needs and financial goals, universal life insurance may offer the best coverage at the cheapest rates, and could offer an affordable, competitive alternative to term coverage. For this reason, it is essential that consumers compare term vs. universal life insurance policies.

Term life provides pure, temporary coverage at cheap rates, without a savings account or investment component called a cash value; while an universal life policy provides permanent insurance at slightly higher rates but offers the ability to accrue and build a cash value through investments.

Both types have advantages and disadvantages, and the difference in costs could be minimal over a life time, requiring a comparison to determine the pros and cons for your specific situation.

Term Life Insurance

The biggest advantage of term coverage is it has the cheapest rates of any policy. However, it must be replaced or renewed at the end of the term period at higher rates. Life insurance companies determine rates by age and health, and the younger a policyholder or applicant is when he/she purchases the coverage, the cheaper the premiums.

While term rates on a 30 year policy for a 25 year old man may be really cheap, when he needs a new contract at the age of 55, his premiums will not be as low cost as before. For young families with limited budgets, term life insurance may be extremely affordable initially, but the cost may be higher with age and the development of health issues or problems.

Universal Life Insurance

On the other hand, because universal life insurance is permanent, rates are statistically based on the average life span of the insured person. Rates on universal policies for a 25 year old man will, initially, be higher than those on a term life policy, but premiums will remain fixed over the insured person’s lifetime.

There is no need to replace or renew universal coverage so the man will pay the same premiums at age 55, 65, and 75 as he did at age 25. Most universal policies remain in effect until age 95 or age 121 as long as the premiums are paid and the policy remains in good standing.

Pros and Cons – Term vs. Universal

Term life insurance is pure insurance and term life’s primary advantages are low fixed rates and a fixed death benefit, which is the face value of the policy and the amount your beneficiaries will be paid out when they file a claim if the policyholder dies prematurely while the contract is still in force.

Universal life offers the same coverage with the added benefits of an investment feature, which accrues cash value over time and can be used in financial planning or as collateral for low interest loans. While the universal policy premiums are not as cheap as term, this is due for two reasons – the risk to the insurance company and the use of the premiums.

When policyholders make premium payments on a universal life policy, a majority of the premiums are used to fund the cash value, providing you with money to invest in stocks, bonds, mutual funds, and commodities. Universal life insurance as an investment can offer very good returns and help you grow your nest egg for retirement, though investment returns are not guaranteed and your cash value can suffer losses if you are not careful.

The bottom line is that the death benefit is tied to the performance of the investments and may fluctuate, while term life protection has a fixed death benefit. If the cash value in a universal policy reaches zero due to negative investment returns or losses, the policy may lapse and the insured person will have to seek a new contract and reapply.

The other reason term life prices are so cheap is that, if the policyholder does not die within the term period of the policy, the company keeps all the premiums paid. With universal, because the policy is permanent and provides coverage for a lifetime, the carrier will eventually have to make a pay out of the death benefit, therefore decreasing their profitability.

Again, term protection does not have a cash value and if the insured person outlives the policy, the insurer does not pay a death benefit and retains the premiums, while universal insurance is permanent and payment of the death benefit is guaranteed.

Final Word: Term vs. Universal

Overall, term vs. universal life insurance comes down to what your specific financial and insurance needs are, your risk tolerance, and the type of coverage you feel comfortable buying.

Both term and universal have their pros and cons, each targeting a niche demographic with unique needs and future financial goals. Universal rates are lower than those of permanent whole life insurance but higher, initially, than those of term premiums.

Because term life is temporary and new or renewal policies may not have the same cheap rates in the future, the cost of universal life coverage may actually be lower over a person’s lifetime than the cost of term coverage.

There is also the option of purchasing universal life protection when you are young and healthy, and buying a supplementary term policy later on in life when you are in need of additional coverage.