Cheap Term Life Insurance Quotes

Finding cheap term life insurance quotes is in the best interest of every person looking to protect his or her family. All risk factors being equal, it's best to pay the least amount possible in monthly premiums. For example, a term policy with a death benefit that pays $100,000 may cost $80 per month at one company but only $70 at another. Over the course of a 20-year term policy, the policy owner will save $2,400 with the $70 per month policy. A savvy policy owner can then use the savings to pay down his or her mortgage faster. Or, he or she can invest the savings in equities and use it to build additional retirement savings, pay for a child or grandchild's college education or for any other purpose he or she deems appropriate.

Depending on the age, sex and health status of the applicant, term life insurance is one of the most cost effective policies available. Term insurance is inexpensive because the cost of the premium is applied only toward paying the death benefit to the beneficiary. The costs of administering the policy are very low for the insurance company. And, insurance company and government sources estimate that only between 3% and 5% of term policies actually pay the death benefit to the beneficiary. If the policy owner is alive at the end of the term, the insurance company has collected the premiums without having to pay a claim.

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Looking Online for Cheap Term Life Insurance Quotes

One of the easiest ways to find cheap term life insurance quotes is to look online. All of the major life insurance companies, both those that are publicly traded and those that are mutual companies, have websites that provide potential policyholders with information about and rate quotes for different types of term insurance policies.

One way to find the best rates is to use search terms that include the words that are most important to the product or policy. Search term phrases such as, "cheap term life insurance quotes" should yield results that include inexpensive or low-cost term life insurance policies. However, those searching for cheap term life insurance policies should be aware that a cheap policy for one shopper might be considered an expensive policy for another. Therefore, term life insurance shoppers are always advised to check out the different types of policies available to them along with synonymous search terms. Synonyms for "cheap" might be "inexpensive term life insurance quotes" or "low-cost term life insurance quotes".

Those looking for cheap term insurance quotes should also consider other factors that will reduce the cost of the policy. For example, paying the premium once per year usually results in a savings over paying once per month. For those paying their premiums monthly or quarterly, paying via electronic funds transfer or automatic deduction will also usually result in a cost savings.

There is also tremendous competition among life insurance companies that sell term policies, which is why it's easy to find cheap term life insurance quotes online. And, term life policies are easy for life insurance companies to administer. Known as "one time pay" policies, the company collects the premium every month, quarter or year and then pays out only upon the death of the insured.

Using Web-Based Calculators to Get Cheap Term Life Insurance Quotes

Using a web-based calculator to get cheap life insurance quotes helps those searching for insurance to find the least expensive policy available. Web-based term life insurance calculators will usually ask a few general questions before providing a quote. The questions may be similar to the following:

  1. In what state does the applicant reside?
  2. Is the applicant male or female?
  3. What is the age of the applicant?
  4. Does the applicant have a history of heart disease, cancer or diabetes?
  5. What is the size of the death benefit requested?

Most online term life insurance calculators will provide a general quote based on the answers to these questions. Some will then direct the applicant to the website of the life insurance company that best suits his or her needs. For example, an applicant who has a history of heart disease may find a cheaper term life policy with a different company than an applicant who is in excellent health.

Web-based term life insurance calculators can also provide comparisons of several different policy types from different insurance companies. Choosing a policy with a death benefit and term that covers the financial obligations of the insured is one of the most useful features of online calculators. An applicant can change the amount of the benefit and length of the term to find the coverage amount and time period that is best suited to his or her individual needs.

Choosing a Company

The best way to choose a life insurance company after finding a cheap life insurance quote is to make sure it has been highly rated by one of the four credit ratings agencies. A.M. Best, Fitch, Standard and Poor's and Moody's Investors Services each rate life insurance companies on credit worthiness and the ability to meet future financial obligations. This is especially important because life insurance represents a financial obligation that may not occur for 10, 20, 30 or more years in the future. With term life insurance, the obligation is the death benefit. With permanent life insurance, the obligation is both the death benefit and any amount of cash that has built up in the investment account.

Some of the most highly rated life insurance companies are John Hancock, Metropolitan Life, New York Life and Prudential. Each has an outstanding record of paying past claims, which is one of the best indicators of paying future claims. Each of these term life insurance companies is also highly respected by both individual and group policyholders. The types of term policies offered range from standard level benefit term life to term life with return of premium.

To find the best life insurance products request a free, comprehensive quote comparision. Secure your future today, Get Started Now.