How to Buy Term Life

Buying life insurance is an important decision that requires the policyholder to consider a number of variables. Read on for step-by-step instructions on how to buy a low cost term life insurance policy.

1. Verify that term life is right for you. Low cost term life insurance is the right decision for most policyholders age 40 and under with limited coverage needs. However, if you are older or want to use your life insurance policy as an investment tool, you might consider other types of policies.
2. Consult with an insurance professional about your coverage needs. Figuring out your coverage needs on your own can be tricky, which is why it's best to consult with a financial planner, life insurance agent, or a life insurance broker. Any one of these professionals could make informed recommendations about how large of a death benefit you need.
3. Set the term of your policy. You can buy low cost term life insurance policies with terms as short as five years or as long as 40 years. The term of your policy should at least extend long enough until your children are grown and/or your spouse reaches retirement age.
4. Start shopping for companies. After you know the specifics of the policy you need, you can begin collecting quotes on cheap term life insurance online. The fastest way to do this is to use a multi-quote site like ours where you can review the offers of several life insurers at once.
5. Rate the life insurers that offer the best quotes. At this point, you should have a list of the carriers that can offer you the best low cost term life insurance. You can then begin rating the life insurers on their reputation, quality, and policyholder satisfaction. You can rely on current policyholders, your state insurance department, and consumer satisfaction surveys to obtain this information.
6. Apply for coverage online or with an agent. The easiest way to apply for affordable term life insurance is to go to the insurer's website. You can also visit the office of a local life insurance agent or broker.
7. Complete your life insurance medical exam. Before a life insurer will give you cheap term life insurance, you will have to take a medical exam. These exams are given by paramedical professionals that come to your home or office. The paramedical will take your medical history and administer several tests to measure your health.
8. Pay your premiums. After the medical exam, your carrier will let you know whether you qualified for standard, preferred, or preferred plus low cost term life insurance rates. To activate your coverage, you will need to pay your first year's premium.