Best Term Life Insurance Of January 2023
When you’re shopping for term life insurance, it may be tempting to look only at the prices offered. While price is an important factor, it is not the only one.
Here are some tips for how to find the best term life insurance coverage.
Compare quotes from multiple life insurance companies
Your age and health play a substantial role in your term life insurance quotes and the coverage available to you. It’s important to compare life insurance quotes from multiple companies so you’ll be able to identify the true best value.
If you have health issues, work with an experienced life insurance agent who can identify insurers most likely to give you the best rates. Smokers, marijuana users and others with “risks” (such as heart condition or DUI conviction) can also benefit from working with an experienced life insurance agent.
Consider coverage features in addition to cost
Yes, cost is very important when selecting a life insurance policy. But don’t focus solely on price or you may sell yourself short on finding the best term life insurance policy and insurer for your needs. Here are some term life coverage features to look for:
- A term life conversion feature allowing you to convert the term policy into a permanent policy in the future. You’ll be glad you have this feature in the future if you develop health problems and decide you want to extend your life insurance coverage.
- Living benefits that offer the option of accessing your death benefit for various reasons while you’re still living. For example, an accelerated death benefit will let you take money from your own death benefit if you develop a terminal illness in the future.
- Life insurance riders that give you the flexibility of customizing a term life policy. For example, a waiver of premium rider will waive your life insurance payments if you become disabled in the future.
Ask about the policy’s accelerated death benefit
The best term life insurance companies offer an accelerated death benefit, which is a type of living benefit. If you become terminally ill, an accelerated death benefit allows you to access your death benefit while you’re still living. Some insurers offer this same feature if you become chronically or critically ill.
If you utilize the accelerated death benefit, your beneficiaries will receive a reduced payout at the time of your death. How much you can access and the qualifying rules vary by the insurance company.
Ask about term life conversion
Converting a term life insurance policy into a permanent life insurance policy is a feature offered by most of the best term life insurance companies. This feature allows you to trade your term life policy for a permanent policy, such as whole life insurance or universal life insurance.
Check the rules for conversion with any insurer you consider. You usually must make a conversion during your level term period or before, and most companies also have an age cap—whichever comes first is your deadline for converting.
Find out the rules for renewing the policy
Term policies provide set rates for the level term period, such as 10, 20 or 30 years. During that time, you pay a fixed premium. Many insurers allow you to renew the policy after the initial level term period ends, up to a certain age. However, the cost of renewing term life insurance can be exorbitant, so be sure to consider that when weighing your options and shopping for term life insurance. It’s better to buy a long policy from the start, rather than count on the option of renewal in the future.