How to Buy Life Insurance Online Without an Agent

You don’t need life insurance if you don’t have a family or other loved ones who depend upon you for sustain. If you do have family that you want to provide for in the event of your untimely death, how much life insurance do you need?

A simple formula that takes into account the age of your children, the cost of educating your children, your spouse’s earnings and the mortgage payment will help determine a realistic figure.

In the best of all worlds, your family would be completely taken care of forever, but since you are looking at the possibility of your own death, the best of all worlds scenario does not exist. Think about what is realistic in terms of what you can provide now.

Your death should not be like winning the lottery for your loved ones, nor should it be a quick trip to poverty. It’s a balancing act between meeting your current needs and taking care of business after your death.

If your spouse makes more money than you, take that into consideration. If you live near family and those left behind will have help taking care of the kids, take that into consideration too. Before figuring out exactly what you think you need, remember that life insurance is only for what you can’t provide to do without. If you die, your spouse doesn’t need a new car or a vacation. She needs time to get her life together and enough money to carry on without a major shift in her lifestyle, either up or down.

Finally, don’t decide on how much you need until you know the cost. The best way to get the best price is to visit a website that helps you search and compare the top rated carriers with the most affordable price and coverage for you.

If you want to keep things simple and straightforward, you can buy term life insurance. Term life insurance is called term because it is offered for a set period of time or term. The policies revive each year for the same payout amount you first bought whether it’s for $10,000, $50,000, $500,000 or $1,000,000. The premium goes up every year because every year you get older and closer to death. However, most policies are now sold with set premiums for a certain period of time and these are called level term policies. Most companies offer a single, non-increasing rate for 10, 20, or 30 years. Just remember that the longer the level term, the higher the premium because the insurance company is taking on a higher risk in the later years.

With life insurance you are betting that you are going to die and the insurance company is betting that you are going to live. The lower your premium, the lower your chance of dying.

If you die, the insurance company makes a lump sum payout to your beneficiary.

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