How to buy Term Life Insurance online
Hi, life insurance rock star here with five tips on how you can find the best term life insurance. Okay tip number one, beware of payment plans. Payment plans might not seem like that big of a deal when you’re shopping for term life insurance but when you're buying term life insurance, payment plans mean a lot. I’ll give you an example. You might look for a policy and get quoted a price of say two thousand dollars a year but when all of a sudden the monthly bill comes, it’s much more than two thousand divided by twelve.
Well, why is that? The further away from annual pay you go the more money you’re actually paying. You could be paying sometimes between ten and twenty dollars per month if you’re on a monthly payment plan. So in summary for tip number one, pay annual, don't pay semi-annual, don't pay quarterly, don't pay monthly because you end up spending more money than you need to. Pay annually. Okay tip number two, beware of personal information. I know; what does that have to do with how much you pay for term life insurance? It has a lot to do with it. Let me explain. When you hit a web page, and that's how most people start out by shopping for term life insurance, they will be asked for some information. What's your zip code?
What state do you live in? Sometime they’ll ask you more questions like, what's your social security number. All sorts of information that they do not need to quote your personal term life insurance. Why are they asking all of this information? They're trying to lure you in. You don't need to play that game. Believe it or not, you only need basic information to quote term life insurance. We need to know your age, we need to know your general health status and we need to know the amount of coverage you want to have and of course how long do you want the term policy to remain enforce.
That’s it. We don’t need your social security number, we don't need to know what state you live in, give or take that one’s a little bit of an asterisk, but for the most part, so beware of the insurance companies, any agents and the online site that are trying to gather a lot your personal information. They’re just trying to hook you. They don't need that information to quote it and you don’t have to give up that private personal information. Hi, okay tip number three, beware of terminology. Now what does that mean? That means you might go to one insurance company or one agency or one website and you might be called a preferred risk.
What does preferred mean? Nothing, it's just terminology. It’s just something that an insurance company or an agency has come up with to try and make you feel special because one insurance company might consider you preferred, another might consider you super-preferred, another might consider you super-plus-preferred. Doesn't mean anything. They’re just sales terms, so don't get suckered in by thinking, hey I'm getting the preferred plus rate with one insurance company there can't be any better, because you might find an insurance company that calls the same price super-preferred. Again, pay attention to the price.
Tip number four, beware of the super-preferred rate that you're seeing on the screen. Did you know that only seven percent of the people that apply for term life insurance actually get the rate that they applied for if they're applying for the insurance company’s least expensive rate; seven percent. That means that ninety-three percent of you out there when you apply for term life insurance and you get the rate on the screen, you're not getting that rate. Of course the insurance companies are going to show you their absolute best possible rate but it only seven percent of people can actually qualify for that, is that really the rate you should be expecting? No, you shouldn’t. Again, beware of the quoted rate versus the rate you're going to actually get.
You might be in that ninety-three percent and that's not going to be the price that you end up paying. Tip number five, be sure you're comparing apples to apples. Now I know that sounds obvious but believe it or not it’s not always that easy when you're shopping for term life insurance online. You want to be sure if you're comparing a twenty year term with one company to a twenty year term with another company. Be sure that both of those terms give you all of the same provisions. For example, one term policy might give you the ability to convert into a permanent policy without proving that you're healthy, whereas another term policy might not give you that option. That option is worth a lot of money. So you need to be careful. It’s not just the dollar you see. You need to be sure you're comparing apples to apples.
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