Choosing The Best Term Insurance For Your Age

Choosing the best term insurance is important in order to gain the financial benefits of choosing term life. Depending on your age, there may be different policies that are better than others.

Items Needed to Choose Term Life Insurance

  • Basic personal information
  • Basic financial information
  • Current assets and liabilities
  • Approximate cost of future obligations – Children’s education, etc.
Step One – Consider Your Age

The first step in choosing the best term insurance is to evaluate your age. Term life insurance is established for a set length of time, generally 20 years, but policies vary. You can find 10 year policies, and you can find policies that are “renewable for life” or as long as you want insurance.

If you are single and in your early years, purchasing life insurance, term or otherwise, may not be of primary importance. As you get older, you will likely want coverage, and need more than you would have in early years. Renewable policies become important as well. In older years, you may determine that you have enough other assets to help your family and you don’t need life insurance.

Step Two – Consider Your Health

If you are young and healthy, you may choose to take the gamble that you will remain healthy, and not purchase life insurance. If you are in a family with a history of health problems but you are currently healthy, you may determine that buying the best term insurance possible with a lifetime renewal clause is the best way to go.

If you are overweight but believe you can lose weight, you may purchase a small policy temporarily, then apply again when you are in better physical condition in order to get a lower rate. A number of the larger insurers have higher rates for those in obese or overweight categories.

Step Three – Consider Your Family Situation

If you are single with no dependents, you may decide that you don’t need life insurance at all, or just a little to help your family with burial arrangements. On the other hand, if you are young and just starting out with a family, then you will want a policy that has high coverages.

The time you need to highest coverage is when you have a number of dependents (spouse, children and/or elderly parents) who would be left without a provider if you were to pass. These years can be the hardest years to pay for insurance as well, so it helps to purchase a renewable policy when you are young so the premiums stay as low as possible.

Step Four – Determine Future Obligations

Look at your financial situation. Besides the cost of a funeral, think of other expenses your family will have in the case of your death. Start by providing at least one or two year’s salary replacement.

If you have car loans and expect to have them in the future, add those to the amount you’ll need. If you anticipate education expenses in the future, add those expenses or a potion of them into the total amount of life insurance you need. 

Step Five - Determine the Best Insurance

Taking all these factors into consideration, determine the best term insurance for your situation: the best policy type, and the best coverage. You can then compare quotes online or in person and choose a reputable company with which to purchase coverage.

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