Term Life Insurance

About Budget Life

The following term life insurance companies head up the Budget Life Top 15: Ohio National Life Assurance Corporation, Genworth Life and Annuity Insurance Company, The Penn Mutual Life Insurance Company, Genworth Life Insurance Company, Cincinnati Life Insurance Company, Security Mutual Life Insurance Company of NY. We use a third party database of the best term life insurance companies to rank in terms of lowest life insurance rates. We can also provide whole and term life insurance quotes online.

Term life insurance rates have been dropping steadily in response to increased competition. Term life insurance is a commodity, and improved access to online life insurance quotes information, such as at this Web site, is making it even more so. Whether to use life insurance as an investment is a separate decision; but for the lowest life insurance cost, which is term insurance, why pay more than you have to?

Budget Life also lets you obtain term life insurance quotes from independent agents. A life insurance agent who uses our database can ensure that you receive the lowest life insurance rates, rather than just a quote for one life insurance company. Term life insurance quotes are commodities, so be sure to get the best term life insurance rate. Some can also provide life insurance underwriting for impaired risk life insurance. To evaluate all of your underwriting factors, contact us about life insurance quoting software.

About Life Insurance

Paying for life insurance hurts! But few can do without it. The key is to buy life insurance only for losses that you can not replace, such as your income. Avoid narrowly defined life insurance policies that only cover specific loss of life, such as accidents, plane crashes or cancer. You're better off with insurance for any loss of life for a small increase in premium.

Don't skimp on life insurance. But remember that people with no dependents may not need life insurance policies at all. To estimate the amount of a life insurance policy, use our life insurance calculator. Most life insurance consultants estimate five to ten times your annual income. Smoker life insurance costs two to three times as much as non-smoker.

Jane Bryant Quinn advises how to find the best term life insurance quotes in When Your Term Life Insurance Expires. Budget Life uses the Term4Sale database recommended by Ms.Quinn for term life insurance comparisons.

Make sure your policy has an option for accelerated death benefits. This option will enable you to access your life insurance policy if you contract a terminal illness.

Term or Whole Life Insurance?

Term life insurance, also called temporary insurance, covers a person against death for a limited time, the term. For example, the term might be until children are grown, or until college is paid for, or until retirement. You pay for the policy period and at the end of the term, the contract or policy expires. If no claims are made against the policy during the term, you don't receive any benefits after the policy expires, just like auto or homeowners insurance.

Whole life insurance, also called permanent insurance, is permanent and does not expire (assuming you continue to pay the premiums). It provides coverage similar to term life insurance, but it also provides an investment vehicle. A portion of the premium goes for life insurance, while the rest goes into an investment account. This account can be an interest bearing account or a variable (stocks and bonds) investment account.

Which is better (our opinion)? A young family with large financial obligations is usually better off with a term life insurance policy. The substantially lower premiums enable them to purchase sufficient coverage to protect against loss of income. Any discretionary investment funds can be placed in other vehicles (mutual funds, money market accounts, etc.) that are likely to generate returns similar to or better than a life insurance policy. Whole life insurance is often purchased by people for tax and estate planning purposes. Recently, some advisors have started recommending life insurance as an investment. You should consult with your financial advisor.

Choosing an Agent

Almost all life insurance companies sell their products through agents, rather than directly to the public. Some companies use "captive" agents, who can only represent one company. For insurance with a competitive life insurance company (such as those featured at this site) you will use an independent life insurance agent, who is free to represent several companies. Whether you need term life insurance or a whole life insurance quote, your agent can help you find the best life insurance policy.

You should first obtain online life insurance quotes, including for Canadian life insurance, before making a decision.

More Life Insurance

Some life insurance companies now offer no-exam life insurance with a few health questions and no medical exam. Check out our life insurance video for more information.

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Term Life Insurance