Why You Need Term Life Insurance
If you’re looking for Term Life Insurance, it’s both easy to explain and obtain! It’s a guarantee to your loved ones that in the event of an unexpected death, they will be financially secure. However, if you’ve never purchased life insurance before, there is a good chance you have a lot of questions concerning why you need it. Today Arlington Greene Agency will walk you through 3 steps to getting a free term life insurance quote. Let’s get started!
Term Life Insurance Policies
Term Life Insurance is coverage you have for a set number of years or a “term”. Typically, clients need coverage till their mortgage/bills are paid off and they have significant savings for retirement. Often this is 10 to 40 years of coverage and life insurance companies often run these in 5-year increments. For example: 10, 15, 20, 25 and up to 40 years sometimes. With term life insurance, you have lots of flexibility!
Term life insurance is by far the most common policy due to its affordability. Other life insurance policies offered are referred to as “whole life or permanent life insurance”. These policies run for your “whole life.” They are more expensive, but often offer clients more flexibility. In most instances clients who are looking at Whole/Permanent policies already have large savings/investment and so these types of policies offer other avenues for investments and generational wealth options. They will cost more in the long run, but can earn interest on premiums paid. Other whole life policies offer “loans” against the policy to allow clients more income later in their life. To learn more, visit our article on Whole Life Insurance.
Steps to Getting Term Life Insurance
The first step to getting a term life insurance quote is deciding how much coverage you need. Here at Arlington Greene, we’ve done this for many years and on average recommend a minimum coverage of 10x your yearly income. For example, if you make $100,000/year we would recommend a minimum policy amount of $1 million. We recommend more coverage than that, but only if you can budget for it.
We will often recommend as high as 30x your yearly income (which would be a $3 million dollar policy according to our example). This may seem like a lot, but in today’s world things are inflating in price and money goes quickly! We want you to consider your mortgage, bills, college, private schooling, kids sports expenses and everything else you have in your life.
You might be worried this may cost a fortune, but the younger and healthier you are when you apply for coverage–the cheaper it is! Our easy-to-use life insurance calculator can help you gauge exactly how much coverage you need for your situation.
Now that you know how much coverage you need, the next step is determining the length of your policy. This means how long you want coverage to last for or as we like to call it–your term length. As we’ve talked about before, you often need coverage until your home is paid off, your kids are out of college, and retirement savings are cashed in the bank. If you apply for coverage in your 20’s or 30’s you’ll need to plan for 30+ years of term coverage. If you are in your 40’s or 50’s, maybe 15-20 years is all you need.
Lastly, you need to determine your health. Coverage can be determinant on your current health, family history, height, weight and smoking history. At Arlington Greene, we help narrow down the top rated insurance companies that will offer you the most affordable rates based on your health status. When you purchase a term life insurance policy you want to make sure that the company you go with is top rated or an A+ company.
This means that they have a strong financial portfolio and you can rest assured that if there is a death and your claim submitted, they will pay you. At Arlington Greene we only work with top rated companies. Our goal is to find a company that will offer you a “preferred plus” rating. This is the highest rating you can get based on your health profile. If that isn’t available because of your health profile, then we will find you the next best rates.
If you have a family history of early Heart Disease or Cancer we know which company is more lenient and won’t charge you based on these conditions. This also goes hand in hand with finding the right underwriting process. Each company has a licensed team to review your health profile and records to determine your health risk before they decide to accept your coverage. Some companies have a fast and effective underwriting process to get you your coverage sooner, but because we are experts we can help you navigate everything. Once you receive options for coverage and premium costs, you get to decide which policy is best for you! Just know that we are here to help you along the way.
Mistakes to Avoid When Acquiring Life Insurance Quote
One common mistake we see many clients make is going straight to a life insurance company’s website for coverage. This is an option, but you may be selling yourself short by missing out on better policies and better rates. Each life insurance company has its own rating standards and the average person will never know the little details our agency has cultivated over the years. By choosing an agency like us, we know right away, based on simple medical history questions, which insurance company is going to be the best choice for you. Usually, we end up saving our clients hundreds if not thousands of dollars over the health terms in your policy.
Another common mistake is not getting enough coverage or a long enough term length. Remember, the best time to get a term life insurance policy is when you are young and healthy. It’s cheaper and easier! If you sell yourself short and in 10 years you need more term length or more coverage, but now you have a serious health condition, you will be looking at higher premiums. If you stop and consider all your details at the beginning, you will set yourself up for success with better coverage long-term. At Arlington Greene Agency, we will never oversell you! We realize it’s important to talk to an expert guide who can help you maneuver through the life insurance world. Plus, we love educating our clients!
Free Term Life Insurance Quote FAQs
If I have a quote, how long is that good for?
- Typically, till your next birthday.
When does the policy go into effect?
- As soon as you pay your first premium.
If the premium is too much and I cannot afford it, what are my options?
- Sometimes we can adjust the term length or policy amount to make it more affordable. We always have options.
Can I pay premiums yearly or monthly?
- Either, or sometimes quarterly.
Secure Your Future with A Free Quote from Arlington Greene Agency!
Life Insurance can seem like an intimidating phrase to some. Selecting insurance is about making sure those who depend on you will be cared for when you are no longer around. If you’ve never purchased life insurance before, there is a good chance you have a lot of questions concerning why you need it, and which type is best. Luckily a free quote for term life insurance isn’t hard to come by with us.
At Arlington Greene, we have experts in the life insurance field who are ready to help you avoid these hurdles. We offer all the same policies that you would find going directly through a specific insurance company, but we can help you find the right coverage at the best rates by comparing all side-by-side. We are a small family-owned business with the goal to provide the best service to all our clients. No matter which policy you decide to go with, our team can help curate a plan just for you—guiding your family into securing your financial future!
Life insurance is protection for who and what you love most. Here at Arlington Greene, we are confident in our own families’ protection–so let’s do the same for you.