Shopping for Term Life Insurance on the Internet

Term Life Insurance Defined

Term insurance is a type of life insurance that covers you for a certain period of time (the term) that is usually for 10, 15, 20 or sometimes even 30 years. At the end of the time period the policy ends unless it is renewable. If it is “renewable” you can keep it but at a rate reflecting your new (older) age and thus a higher price, sometimes substantially higher.

When and how to use term insurance

Term is a great financial vehicle to get the most possible insurance for the money, at least initially. It is especially useful for families that have current and future financial obligations but have not yet grown the assets to fulfill those obligations if they should die prematurely. Think of term or any life insurance as a way of replacing the income one would not be there to earn for those dependent upon them if they should die.

Online Shopping

When shopping for term life insurance on the internet there are a variety of life insurance sites available. Four common types are:

1. The type that asks for your personal information which they then sell as a “lead” to insurance agents.
2. Sites that market insurance directly but ask for info about you including name and e-mail address before they'll give you a quote.
3. Insurance company sites that quote their company’s rates or refer you to one of their agents.
4. Sites that openly allow you to access the database of life insurance rates anonymously. If you find a price and policy that you like, you can then contact them.

Recommendation

It’s important if you have financial obligations to your family or business, that you have sufficient life insurance. Use the open architecture of a site that lets you search anonymously to learn and see different rates from many companies. Used right, the internet can be a great resource to research information and prices for term life insurance.

About the Author: Neil Willner is a licensed life and disability insurance agent with over 25 years experience. His firm has over 12,000 life insurance and disability insurance clients. His two internet sites are www.lifeinsure.com and www.protectyourincome.com