One of the most important things you can do for your family is to make sure that your family members are properly covered by life insurance. Many people prefer to get term life insurance quotes, though, because it can be much cheaper to get more coverage when you have term life, as opposed to paying for whole life or universal life insurance. Term life insurance only covers for a limited time, and then, when the term is up, you no longer have coverage. Because the policy doesn’t build cash value, you can usually get a large term life insurance policy for a good price.
As you get ready to receive term life insurance quotes, you will need certain information. Some of the information that an online insurance quote aggregator, or a life insurance agent, might want in order to give you an initial quote, includes:
- State of residence or ZIP code
- How much coverage you want
- Whether or not you use tobacco
This is information that is used when determining life insurance quotes. These factors are used in figuring out what sort of risk you represent. Life insurance companies determine your premium based on the likelihood that you will die (and a payout will result) before you are expected to. If you are fairly young, and in good health, you are likely to get a lower rate quote for your term life insurance. The more risk factors you have, such as being older or smoking cigarettes, the higher your insurance premium will be.
Understand that your initial insurance quote will not be your final premium. Before finalizing your premium, the insurance company will want to verify the information you have provided. In some cases, you might be required to allow a nurse to come to your home to draw blood and take urine samples. (You may also be instructed to go to a specific clinic in town to do this.) Your height and weight matter, too, since some insurance companies will use your BMI to help determine whether you are at risk for issues related to obesity.
Additionally, term life insurance quotes depend in part on the amount of coverage you want. The more coverage you want, the higher your life insurance premium. Before you look for term life insurance quotes, it is a good idea to figure out how much coverage you actually need.
Figuring Out How much Life Insurance Coverage You Need
There are different ways that you can figure out how how much life insurance coverage you need. Some recommend that you multiply your annual salary by seven or by 10, depending on how long you think your family might need the money after you are gone. Others prefer to break down the exact coverage they will need, including information on:
- Amount of debt you owe; many like to make sure the life insurance will pay off consumer debt and mortgage debt.
- How long children will be dependents.
- Whether or not you plan to pay for college for your children.
- Whether your partner works.
- If child care will be needed while a spouse works after you are gone.
- Regular expenses that may need to be paid.
You can consider these items when deciding on how much coverage you need, and as you prepare information for more accurate term life insurance quotes.