Let’s be clear–it is almost redundant to talk about low cost term life insurance, as it is so much cheaper than the alternative, permanent life insurance. Since the latter promises a guaranteed payout, is naturally much more expensive than term life. In fact term insurance isn’t say, half as expensive as permanent life, your term premium payments will actually be only a very small fraction of what they would be with permanent.
The problem with term is that you risk paying premiums, low though they are, for many years or even decades, without receiving a death benefit payout. Of course surviving the period of your term policy is good news for you but it’s also very good news for the insurance company to which has received all those payments, plus interest with no payout obligation in the end.
This is not to say that some form of permanent life insurance is the way to go. Most experts advise avoiding the high premiums of whole life insurance and the supposed investment vehicle that it represents. Instead find a low cost term life insurance rate and invest any extra money that you have each month in a well-chosen portfolio of investments.
When you’re surfing the Internet for low cost term life insurance quotes keep in mind that you will probably want life insurance for your entire life, and not just for the length of the policy you’re considering buying. Has it occurred to you that you risk being entirely without life insurance your 50s or 60s if you go the term life insurance route? Assuming you survive the initial policy, which is statistically quite likely, you could find yourself going to insurance companies as a much older individual, possibly with health problems. You may still be able to find term life insurance for yourself at that age or you may have few other options than a more expensive whole life permanent policy.
There are ways to get around this dilemma however. Even if you’re shopping for low cost term life insurance online you should be given an option to add a so-called extendibility rider, or supplement, to the policy that will leave no gaps in coverage. Another option is to buy a term policy with a convertibility feature that will enable you to continue your coverage as a permanent policy at that time. The premiums will most likely increase of you will have no lapse in coverage.
The bottom line is that getting a low cost term life insurance quote is only part of the challenge you face when you’re trying to determine the best coverage for you and your beneficiaries. Even though it’s usually the best policy for most people, consider your other options, and be aware of ways you can customize your policy to best suit you.
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