Few things in life are as complicated – and vital – as life insurance. In many cases, you may think that you need a lawyer present to sort through the jumble of confusing legal terms used in a standard term life insurance quote.
You need to remember, life insurance companies rely heavily upon statistics that take into account a number of factors, such as age, medical history, and life expectancy, to calculate life insurance quotes for potential customers. These policies are legally binding, and the insurance company is taking a risk on anyone they insure – which is precisely why any given policy is filled with so much legal jargon that even lawyers might feel overwhelmed when reading through it! But don’t worry – there is a light at the end of the tunnel, because your life insurance quote is not as complicated as it may seem at first.
Do I even need term life insurance?
That is a great question, and the answer depends on exactly what needs you happen to have. There are numerous life insurance options, but for now we will just focus on the two big ones: term life insurance, and whole life insurance. You will want a term life insurance quote if you want to provide your family with protection against any outstanding debts. This includes things like mortgages or other large chunks of debt. Parents of young children, who want to make sure that their kids will be taken care of in the event of their death, generally buy a term life insurance policy. You will want a whole life insurance quote if you want to use the policy as a potential investment, as these policies build cash value over time.
I just want to make sure my loved ones are taken care of…
In that case, you probably need a term life insurance quote. Again, whole life insurance policies are more for investment purposes, and this is why they have higher premiums. Term life insurance has lower premiums, but never builds any cash value, while a whole life insurance policy can be “cashed in” at some point.
OK, so I need term life insurance. What now?
Ah, now…that is the question, isn’t it? Before you ask for a term life insurance quote, you need to decide just how long the “term” needs to be. Without getting in too deep and needing to bring the lawyers in, a term life insurance quote will be based upon a specified period of time. So, how long do you need the policy for?
Hey, I just thought it was life insurance! I thought you just needed it…you know, forever!
Actually, term life insurance is supposed to help you take care of your family and debts in the event of your untimely death. So, if you have young children who are 15 years away from leaving for college, then you might want to get a policy that lasts for 20 years. This way, they can go to college and hopefully become financially independent by the time the coverage expires. When trying to decide on the term to ask for in your life insurance quote, consider the following factors: your age, the amount of outstanding debt you have, and where children are concerned, the time it will take for them to be financially independent.
So I need a twenty-year term life insurance quote…what else do I need to do?
Life truly is in the details, isn’t it? Well, after you have determined that you need term life insurance, and you know how long you’ll need the policy for, there will be some additional factors that will affect your quote. For instance, your term life insurance quote will most likely be contingent upon a medical exam, and there may even be a waiting period before it kicks in. Don’t take it personally!
After all, this policy could take care of your family after you are gone, and that will cost the insurance company a sizeable chunk of cash. They certainly don’t want to give someone a life insurance policy with a large payout if they have a terminal condition. But don’t worry; your term life insurance quote is contingent upon a fairly non-invasive exam that will involve a blood and urine test. So long as you pass those with flying colors, you will have your term life insurance policy – and the peace of mind that comes from knowing that your family will be taken care of should anything happen to you.
Albert Medinas has developed and maintains the website Life Insurance Directory, which answers the most common questions people have about Life Insurance. Please visit us at http://www.lifeinsurancedirectory.net today.