Term life insurance is a type of insurance that provides coverage at a fixed rate of payments for a limited period of time. In other words, it is a policy with a set duration limit on the coverage period. After that period ends, coverage at the previous rate of premiums is no longer guaranteed. So you as a client must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the person who is life insured dies during the term, the benefit will be paid to the beneficiary. This type of insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium bases over a specific period of time.
Term life insurance differs from a permanent life insurance, in which duration extends until the policy owner reaches 100 years of age (i.e. death).
As with everything nowadays, one can get insurance and the quotes for it online as well, instead of going to the insurance company. Before you decide to actually buy term insurance online, first you need to get an online quote. This means providing personal information to the third parties.
But before you enter all your personal data for a fast online quote, here are a few tips to consider when shopping for life insurance on the Internet.
How to shop life insurance online
A life insurance company does not need all your personal information to give you a quote. So, don’t give out all your personal information (Social Security number, e-mail address, phone number or address). You should be able to fill out your personal information anonymously and get an instant quote right on your screen without having the company e-mail the quote to you.
Get a quote from as many life insurance companies as you can, so you can get comparative rates.
Fill out information correctly. When you fill out information to get the quote and the questionnaire asks basic health information as height, weight, age, cholesterol etc., make sure you fill out the correct data; otherwise you will get a quote that may be artificially low.
Don’t lie about your weight or any condition you have. You may not know all the information when you fill out the online form. Many forms have a “do not know” option. Don’t fill in „desired“ weight or “forget” to check off that you have a heart condition. You won’t get an accurate reading on what you likely are going to pay for life insurance.
Check company’s financial rating. You will want to make sure that the life insurance company you choose is financially stable and solvent. You can do this via consumer-advocate and financial-rating company sites, where you can check these data online.
Finally, do a lot of shopping around online for the best term for insurance quote. No matter what the online company promises, don’t give out your personal information.