If you are in the market currently or are simply researching how to get the best term insurance plan for your family, you have landed in a good spot. This article will provide an overview of the issues you will face, and the best practices to address them, in deciding on the best term insurance plan for you and your loved ones. While this overview will not get into all of the the minute details involved in term insurance submission, it will provide several links to specific subjects that will get more in depth.
The first step to obtaining the best term insurance plan for yourself is to decide what it is you need. In the world of life insurance, deciding what you need, is referred to as "choosing terms". The terms that you will have to decide on are "how much insurance?" and "for how long?"
This calculation is done by simply taking any outstanding loans and adds that number to your income multiplied by the number of years until retirement. This number is then added to the cost of any known future expenses, including college costs if applicable.
The total is your gross need, from which you can subtract liquid savings, 70% percent of retirement funds and any in force life insurance that is personally owned.*
The Life Insurance Help Desk hes an in depth post on choosing terms that is part of the life insurance application process: step by step series.
* I do not recommend using any group life insurance through your employer in the initial calculation, as there is no guarantee that your next employer will offer coverage.
The answer to what is the "best" anything is very subjective. after al the question takes into account what it is that you like. Trying to decide on the best term insurance plan is no different. You need to decide what is most important to you.
In many cases, the decision will simply come down to cost. If you are in good to excellent health, this can be a simple process. you simply enter your information and get a quote with the quoter on this site.
If, however, you have some health concerns, you will have to navigate the underwriting process more carefully as this can dramatically impact the cost of insurance. If this is the case your best bet is to use the custom quote form. This will give you the best shot at an accurate rate projection.
Now, back to the question What does "best term insurance plan" mean to you? Would you prefer to obtain term coverage without taking a life insurance medical exam? If so, would you be willing to pay slightly more for avoiding the exam? ; or do you only prefer the option if it's still the best price?
What about underwriting turn times? Is it important to you that your policy be in place fast? Many carriers now offer accelerated underwriting and can have the policy in force in a week or less. This option may or may not be available with the lowest priced carrier. Applicants who face divorce settlements, or SBA loan collateral requirements are often willing to choose this option even if it is not the least expensive.
Do the privileges that come with specific riders concern you? Some of these riders such as a child rider, waiver of premium, living benefits, and conversion without proof of medical insurability can be of great value, particularly in later years.
All of these "ingredients" go into determining what the best term plan is for your needs. The best way to sort though the process is with the help of an experienced independent life insurance agent.
The importance of 'independent" can not be overstated. If you want to have an opportunity to get a policy that fits all your wants and needs at a favorable price, it's imperative that you have a seasoned hand with multiple options. In fact, most good independent agents will have access to 50+ carriers. You can view example case studies of the value of an independent agent when health conditions are present by viewing any of the specific condition posts.
I hope that this overview, of how to find the best insurance plan for your situation, has been helpful, and you will continue to use the Life insurance Help Desk as a resource. Should you have any questions, please do not hesitate to give us a call or reach out via email.
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Jim Tobin is the owner of Life Insurance Help Desk, a Fairfield County, CT. life insurance agency. You can find him on LinkedIn and Facebook. Over the past 10 years, Jim has used his CFP-financial planning designation to help individuals with their life insurance needs. In addition to working with life insurance clients, Jim teaches ESL classes in his spare time. He resides with his beautiful wife Nicole and the 3 cats that rule their lives..
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