Term Life Insurance – Because dying is really a bad thing.

Since LifeInsurance.Net launched in 1999 as a place for serious consumers to get answers on life insurance, we’ve helped hundreds of thousands of reasonable, responsible adults get answers, advice and quotations on life insurance policies. Yet, almost every day I hear the same concern about term life insurance: “If I buy term life insurance and I don’t die, I’ll feel cheated. I’ll feel like I wasted my money.” I have to remind them that, in fact, dying is a bad thing.

You never want to collect on a Term Life Insurance Policy. Term Life Insurance was created as a disaster management tool. You buy term life insurance to guarantee that you kids will have money for food if you die prematurely. There is almost no chance that the average insured under a term life insurance policy will ever collect. That’s why it is so inexpensive. If the brilliant actuaries at a major life insurance carrier are willing to offer a 30 year old man in good health one million dollars in term life insurance for under three hundred dollars, they must figure that the chances of them paying off are somewhat less than one in a few thousand or so.

Term life insurance is based on a pretty simple idea, lots of people guarantee that they will take a small loss – the annual premium payment – to guarantee that if they die their family won’t suffer a catastrophic loss. The most common use of term life insurance is as an income replacement tool for a wage earning parent. With parents the controlling factor is generally the age of the youngest child. If your youngest child is 6, then a 20 year policy will cover you until she is 26 and out of the house. If she’s still living at home after 26, you have more to worry about than life insurance.

While term life insurance is generally affordable, risk factors can raise your cost – sometimes significantly. If you are a smoker, your policy will generally cost two to three times the non-smoker life insurance rates. While well controlled high blood pressure or cholesterol won’t keep you from getting cheaper preferred health class life insurance rates, diabetes will generally limit you to standard health class life insurance rates. The carrier will also look at your build, family history, and lifestyle to get a better sense of how you compare risk wise. If you are a rodeo rider, cliff diver, private stunt pilot, cave diver or hard core motorcycle rider then you have to be prepared to pay for the higher risk.

Fortunately, different carriers see risk differently, and seek out different slices of the marketplace. So a condition or activity which would make you uninsurable or at least rated lower with one carrier, might be totally dismissed by another. So we generally recommend that you fill out our brief life insurance online rate quote form or call us at (800)958-0028 so that we can underwrite your case and give you the best advice on putting together a life insurance plan that fits your life.


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