Cheap term life insurance is easy to find. In fact, term life insurance is the cheapest form of life insurance you can buy. Still, you want to make sure you’re getting the best deal on your term life insurance policy, which means taking some time to decide how much insurance you need, get several quotes to compare, and then research the insurance companies.
Determine how much insurance you need
You can have term life insurance through your employer with coverage equal to one or two times your annual salary. This is usually not enough life insurance to protect your family. Instead, you might need five to 10 times your annual salary, depending on how many kids and how much debt you have.
Even parents who don’t have a job need term life insurance. If your primary job is to take care of your children, your partner will probably have to pay someone else to take care of them when you pass away.
You also want to decide what term you want. You can purchase term life insurance for periods ranging from one to thirty years.
Get different quotes to compare
The best way to know if you’ve found a cheap term life insurance policy is to compare quotes from different companies. The Internet makes this task easy – you can go to insurance websites, fill out one form, and quickly get quotes from multiple A+-rated life insurance companies.
The best insurance websites even allow you to get quick answers to your insurance questions by talking to an insurance professional online (see link below).
Research insurance companies
Once you have your term life insurance quotes, you’ll want to check the insurance company reviews. After all, you want a cheap quote, but you also want a company that is stable and can pay your life insurance claim.
To check an insurance company’s ratings, your best source is a credit bureau like Standard & Poor’s (standardandpoors.com) or a financial rating agency like AM Best (ambest.com). You can also check your state’s insurance department’s website to see how many claims have been filed against a particular company.