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Helpful Tips For Buying Term Life Insurance Online

Term life insurance is very simple, and can easily be purchased online. For this reason the number of people buying term life insurance online has doubled in two years. There are some advantages and disadvantages to buying term life insurance online.

Advantages

· Term life insurance is simple, there is no cash value, so it is easy to comparison shop for the right policy for you

· There are numerous websites that will compare hundreds of different policies. This makes it easy to take advantage of a policy that you otherwise would not have found

· You eliminate salesmen that may have been able to convince you to buy a more expensive policy that you don’t really need.

Disadvantages

· There is no personal service. If you have questions it is often hard to find someone you feel comfortable talking to

· Often agents can offer special rates or deals, and that is lost when you are working through comparison shopping online

When you buy online, there is no one to walk you through the process so you need to be sure that you know how much coverage you need and what type of term life insurance you want to buy. There are three basic types of term life insurance: Decreasing Term, Annual Renewable Term, and Level Term.

Decreasing Term

This policy is set up for a specific number of years usually between ten and thirty years. The face amount decreases over that period of time. This is a good type of policy for a couple that will have fewer financial responsibilities as time passes.

Annual Renewable Term

This type of policy has the same level of death benefit, but the rates increase each year. You have to renew the insurance each year. This is the most temporary life insurance coverage you can get and may be useful for a person whose situation changes often.

Level Term

This is usually the most common type of policy. It has a level death benefit and a fixed rate for a specific amount of time. Most allow you to renew the policy when the term is up if it is desired. This is most popular because the premium remains low, especially if the policy is bought when a person is young, for the life of the policy.

Good things to ask about or include with your policy are:

· Make sure the insurance is “written in trust.” This insures that the money goes immediately to those you list. It also makes sure that those who receive the money do not have to pay taxes on it.

· Consider having the policy also include critical illness insurance. This will provide money for your family if you suffer from long-term illness. Buying it with an insurance policy is usually cheaper, but be sure not to confuse this with terminal illness coverage.

· Be sure that you can easily find contact information for the company you are buying the policy from.

· Before buying a policy do a little research about the company and make sure it is legitimate.