Wondering what company offers the best options for your needs?
You are not alone. There are millions of others out there who are searching the web for answers just like you about what type of Life Insurance they should purchase for their families.
Sadly, most people end up buying some kind of Insurance from a postcard they receive in the mail or through some huge corporate captive agent who is just after another commission.
In most cases like these, you the consumer ends up on the wrong end of the deal.
I’d like to offer you 3 Simple Tips To Look Out For When Shopping For Term Life Insurance
Buying Term Life Insurance is a big deal for you and your family. And quite frankly in the words of Dave Ramsey, it is the “best deal.” But, we believe it’s not the only deal. More about that in future posts.
The first suggestion I would ask your agent when shopping for the right term insurance protection is…
What’s the maximum amount of years I can be protected with this term insurance product?
Why is this important you might be asking? Well, for starters, if you are buying term insurance at age 35 and the company offers only a 10 year term policy (hypothetically) then you will only have Insurance coverage for a period of 10 years.
At the end of that ten year period you would then have to buy another policy or if offered convert to a permanent insurance plan but at your newly attained age.
In most cases, Term Life Insurance can be purchased in 30 year periods. So in this scenario, you’d have coverage till you were 65 years of age.
In my expert opinion, this is the best mortgage protection product on the market.
The second thing I would do is ask the agent what type of end of term conversion options you might have.
Most companies only offer a conversion to a whole life plan at the end of term, and in most cases that we’ve seen they want you to do the conversion at the beginning of the last 5 years.
But again, these conversions are for the most part only to a whole life plan otherwise known as “permanent insurance.”
These plans are often sold as “Cash Value” plans due to the fact that they build up cash benefit after a certain period of time. Usually the time period is about 3 years.
In our opinion, you need to be extremely cautious when you are told you need to buy one of these policies unless it truly fits your families needs.
In most cases, if not all, these type of policies are worthless due to the fact that you don’t get both the cash value that has accumulated and the death benefit.
Not only that but you also are required to pay back interest on the cash accumulation in the event you were to borrow any funds from that accumulation.
Our suggestion is that you convert to either an Simplified issue final expense option or preferably a decreasing benefit option.
A decreasing benefit option is designed to keep your premiums level but as your supposed need for higher amounts of coverage decreases, instead of paying a higher premium each year with the A.R.T. you would be paying the same premium, but the face amount of the policy would slowly decline until age 95 or 100.
This is a smarter choice for you and your loved ones that an A.R.T. and more importantly, a cash value (whole life) policy.
Our 3rd and final tip for purchasing term life insurance
The last thing i’ll mention in this post is for you to make sure that your policy includes some solid riders such as family banding, and a child term rider (for younger, middle aged Americans with children.)
I would also suggest you seek out a policy that includes a Terminal Illness Rider that pays at least 70% of the face amount in the event your doctor gives you only 12 months to live.
This will keep you from having to buy a “Critical Illness Policy” otherwise known as “cancer insurance.”
If you would like suggestions on which Company we believe addresses all these important items, please feel free to request a quote today.*
*For Residents of the State of TN Only (at this time)