Looking for a way to compare life insurance rates without a lot of time or effort? Requesting quotes online is the fastest and easiest way to get the information you need to compare life insurance policies. When you submit an online quote request, you’ll get results featuring the best rates for the type of coverage you need in just a few minutes. In most cases, you won’t even have to provide personal contact information, so you won’t have to worry about being contacted unless you decide to apply for the insurance. There’s no better life insurance rate comparison tool than using an online insurance agency’s instant quote request system.
Comparing Term Life Insurance Options
Want to protect your your loved ones or your business with a term life insurance policy?
Have you given any thought to what type of term life policy you need? Did you even realize that there are several different types of term life policies? In the most basic terms, this type of life insurance policy provides coverage for a specific period of time, which is referred to as the policy’s term. If the insured party passes away during the term, the full value of the policy is paid to his or her beneficiaries. If, however, at the end of the term, the insured party is living, the policy simply expires.
Types of Term Life Insurance
In order to truly engage in a term life insurance quote comparison, it’s important to know the different types of term life coverage.
Level Term: When most people think of a term life policy, level term is what comes to mind. With this type of policy, you purchase a specific dollar value of insurance coverage (death benefit), which remains constant over the policy’s term period (typically 10, 15, 20, 25 or 30 years).
Decreasing Term: In the past, people who were seeking life insurance solely for the purposes of mortgage protection have selected decreasing term life insurance (also known as mortgage insurance). This types of policy is rare today and even if you could find one, we don’t recommend this type of policy. Level term life policies often have similar or lower premiums for 20 or 30 year policies without a lowering of the death benefit. We recommend that you shop for level premium term or return of premium term life insurance rather than mortgage insurance.
Return of Premium Term: Many people hesitate to buy term life insurance because they don’t want a policy that simply expires with no benefit to them. The idea of a return of premium policy can be very appealing to some people. These types of policies are level term policies with an additional benefit. Assuming the policy stays in place throughout the entire term, all premiums paid will be returned to the insured party, assuming he or she is still living at the end of the term. Return of premium life insurance policies have a somewhat higher outlay than the other types of term life insurance because of the return at the end of the policy.
Traditional Term Life vs. Return of Premium
Have you decided that a term life insurance policy is the best option for you? Before you finalize your purchase decision, it’s important to consider whether or not your needs will be better served by traditional term life or a return of premium policy. Both types of policies provide death benefits for a preset period of time, after which coverage expires if the insured is still living.
With a traditional term life policy, coverage simply stops at the end of the term. With a return of premium policy, however, you’ll actually get all the premiums you paid at the end of the term. These types of policies require higher payments than traditional term policies. Of course, many people find the fact that the money is returned at the end of the term to be very appealing.
Only you can decide which policy option works best for you. If you’re looking for the least expensive way to make sure your family is protected in the event of your death, a traditional term policy is probably better suited to your needs. If you want to make sure that you get some benefit from your life insurance policy, however, you might find that a return of premium policy better meets your needs.