If you’re like me, you want to pay as little as possible on your life insurance, and let your family reap the biggest payouts when we pass. When it comes to insuring our life, I am a huge fan of term policies! So let’s take a look at the best term life insurance plans out there, and answer a few other questions about it in the process.
First we should probably define term policies, just to make sure we are on the same page. It’s pretty straight forward actually. It is an insurance policy that you pay a premium on. When you die, whoever you name as beneficiaries in the policy will receive a predetermined benefit. This type of policy is only valid over a certain period of time (term).
Let’s make an example. Let’s say that I buy a term policy for a period of 10 years, with a benefit of $100,000. I pay a total of $10 a month for it. I name my wife Stacey as the sole beneficiary.
With this example, if I die within 10 years, Stacey will receive $100,000 from the company. That’s assuming that I was making my monthly payments, so that the policy was in effect at my death. That also assumes that I didn’t violate any provisions of the policy.
Every policy will states certain provisions that can’t be violated. One of the most common ones is suicide. Most life insurances will not pay out if I kill myself, and that’s usually the case with term as well.
Now that we’re on the same page on what we’re dealing with, let’s figure out how to get the best term life insurance plan.
For starters, I want to be dealing with a very reputable company. There have been a lot of very shady companies out there that seem to look for excuses to not pay the beneficiary, or to take forever on paying them. The last thing that I want is to pay a company for years and then have them not pay my wife when I pass!
Secondly, I want to know some details. Is there a period of time that I must remain alive before they will pay my beneficiary? Are there any exclusions such as suicide, weight, etc.?
Lastly, I want to find the lowest life insurance policy price that I can!
I would recommend that you gather a list of companies that you can trust, make sure that they all fit your needs, and then request quotes from each of them. If all things are equal, just go with the cheapest term policy that you can get a quote from.