Life insurance has a prominent role to play in a household’s long term financial plans. Life insurance is mainly offered in two types: term life insurance and permanent life insurance. There are vast differences between the two kinds of insurance. While term life insurance is purely meant for benefit purposes, permanent or whole life policies are viewed as investment vehicles and tools which gain cash values and pay off regular dividends. Term life insurance lasts for a certain term only. The most commonly chosen terms are 10, 15, 20, 25 and 30 years. Term life insurance can be used to meet the many financial obligations a family faces such as settling the estate taxes, repaying home mortgages, paying children’s college fees and so on. The insurance amount must be about six to ten times your annual income which would be adequate to cover most concerns. You can also modify the basic term life policy by adding some riders or clauses such as annually renewable policy, opting decreasing or increasing level of insurance coverage, level premiums, return of premiums and such. These riders come at an extra charge and you must weigh in your needs and the subsequent costs before opting to attach riders to the straightforward benefit policy.

The rates of a life insurance which are offered to insurance buyers are decided by their individual profiles of age, health and lifestyle. To qualify for low life insurance rates, industry experts advise to purchase insurance early in life and be conscious of your health. Quitting smoking also makes you eligible for lower insurance rates. The main criteria which the insurance companies have in deciding the rates on your policy are:

– Your birth date: the people who are young and are expected to live longer are offered lower rates. Hence purchasing insurance while you are young would aid you in getting lower rates on the insurance policy as compared with older or middle aged people whose life expectancy is lower and thus they get higher rates of insurance.

– Your health condition: The condition of your health has a pretty prominent role when it comes to determining the rates on your insurance policy. The insurance company gets you checked thoroughly to know the condition of your health. The urine and blood samples are collected and tested to see if you suffer from any health issues. In case you are found to be suffering from any illnesses then you get higher rates of insurance. You have to take care of your health so that you are found to be healthy and well. Getting properly treated for a health condition is greatly helpful in lowering the rates of the insurance policy.

– Tobacco or nicotine users: People who smoke or use tobacco are subject to higher rates of insurance because their mortality rates are comparatively higher than the non smoking people as the data all over the world reflects. Insurance companies bear this in mind while determining the rates on an insurance policy. If you quit smoking and continue to be smoke free for a year or so before getting medically tested then you might qualify for non smoker rates. Some insurers offer non smoker rates only to people who have been smoke free for at least three years.

– Lifestyle and occupation issues: if you are one of those people who routinely enjoy indulging in dangerous sports and life threatening activities and work in hazardous conditions then you would be offered higher rates on the policy which you would be buying because the risk on the insurance company increases when they sell insurance to you.

– Family history of health conditions: if you have a family history of serious or terminal illnesses, then too the rates of insurance increase. It is assumed that you might also inherit the condition and thus pose more of a liability to the insurance company.

Instant term life insurance quotes are a very helpful tool for potential insurance buyers. To get quotes on your query you simply need to key in a few details about your age, health and lifestyle along with the coverage that you want. Within a few seconds you would be given a quote on how much you qualify for. This service is offered free of cost and you must avail of it to compare quotes and finalize the insurer fro whom you would eventually buy insurance from.

Author Bio: Article by David Livingston of EQuote.com, a website with the best affordable term life insurance and cheap life insurance rates information in the country.

Category: Finances
Keywords: affordable term life insurance, life insurance no exam