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According to Annuity.org, around 172 million Americans have a life insurance policy. That’s spread across all ages, too. Older segments of the population have the highest percentage of life insurance owners, but about 34% of people aged 18 to 24 have life insurance as well, and that number is growing.
Term life insurance is a temporary policy with affordable premiums that can work for adults of all ages. Regardless of your age, there are a few steps you can take to find the best policy for your needs. This article will dive into five tips for applicants to find the right term life insurance quotes at any age:
1. Don’t rush into buying a policy
It can be tempting to rush into buying the first term life insurance policy you find to get covered as soon as possible. However, policyholders may not get the coverage they need or pay too high premiums.
Instead, you should do your research and gather information. Look at your budget for life insurance and how many beneficiaries you have, and take action to minimize premiums (such as quitting smoking if you’re a smoker).
2. Calculate coverage needs
To calculate coverage needs, it’s important to consider your family size, financial situation, and plans. For instance, a policyholder with a large family might want to invest in a higher death benefit to ensure their spouse can cover the higher expenses and afford their kids’ college.
On the other hand, a couple with two incomes and no kids may opt for less life insurance. As a result, the surviving spouse won’t need to replace as much income, nor will they have as many expenses to handle.
3. Compare policy term lengths
Many types of term life insurance policies are out there, suitable for different types of policyholders. Term life insurance typically lasts 10 to 30 years, so choose a term length that suits your needs. For instance, if you’re starting a family and only want coverage until your children become adults, you may want to consider a policy with a term length of 20 years. Whichever term length you choose, you can receive significant coverage for affordable premiums.
4. Explore life insurance riders
Riders let you customize your term life insurance coverage by adding additional features to your policy. Some riders are free, while others charge more in premiums. For example, an inflation rider increases the death benefit by 3% to 5% each year, reducing the effect of inflation on the death benefit. As a result, inflation riders can help you grow your death benefit when inflation is low.
5. Shop around
Finally, you should shop around and compare different providers. You’ll want to find the coverage you need without breaking your budgetThe best way to do this is to gather multiple life insurance quotes and compare their rates.
However, low rates aren’t the only thing to consider. Life insurance is heavily regulated, but some insurers are better than others. Prospective policyholders should make sure any insurer they consider has the proper licenses for their location and is financially healthy.
The bottom line
Following a few best practices can help you find an excellent term life insurance policy regardless of your age. First, you should avoid grabbing the first policy you see. Instead, you should calculate the coverage you need, compare policy term lengths, and look over what life insurance riders you might want. Then, it’s smart to shop around and compare insurers to find the best rates from a reputable company. Doing this will help applicants of any age get the coverage they need as smoothly as possible.
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