4 Resources for Obtaining Term Life Insurance

Term life insurance is the best option in most cases for individuals who wish to leave an inheritance to their beneficiaries. With the right amount of insurance, spouses and children can have enough income to live on, after the insured dies. There may also be enough money to pay off debts, buy property and pay for education. Getting a policy is fairly easy. Here are 4 resources for obtaining term life insurance:

1. Employee Benefits Package

Your employer may offer term life insurance as part of a benefits package to employees. You can take advantage of lower premium costs due to group rates, and you'll often have to opt-in to the insurance plan. Some employers might pay for a limited policy on your behalf, and it may not be necessary to do anything more than choose your beneficiary. If you're not sure what options are available to you, contact your human resource department and ask them questions. Follow up by getting a copy of the handbook or manual that has written information about the policy offered by the company. 

2. Trade Associations

If you belong to a trade association because of your job, profession or business, you might have access to group term life insurance. Some associations will offer it as a benefit to members, which can make the costs more affordable. It's important to read the details of the policy and how (or if) your policy is affected if you no longer belong to the association. Another possibility is that you could receive a discount on term life insurance because you're a member of a trade association. It's worth checking with your insurance agent to see whether a discount applies.

3. Financial Planners

Some financial planners are brokers for term life insurance. If you're working with them, ask whether they sell policies. Also, clarify how they get paid. Financial planners get paid a commission for selling you a policy, but some may charge a fee up front in addition to commissions. If that's the case, be sure to compare quotes from an insurance agent to get the best possible rate.

4. Insurance Agents

Insurance agents of major insurance companies are located in or near most cities and towns across the country. Choose companies with strong A or higher ratings, and then check your phone book or online for your local agent. You can also start with the insurance agent that sold you car insurance or homeowners insurance. You might be able to receive a discount on one or more of your policies by going with one company for all of them.

5. Banks

Many banks have increased their products and services in an effort to be a one stop shop to customers. One product that your bank may offer is term life insurance. You can check their website or call and ask them if they sell policies. If they do, they're most likely contracted with an outside company to sell insurance, or their parent company sells insurance. Either way, find out the name of the insurance company, and check their ratings.

Once you've settled on which resource to use to get term life insurance, don't delay in getting a policy. You'll be covered as soon as you complete the application and issuance process.

 

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