3. If I need a policy, what type should I buy?
We recommend term in almost all cases as it is 5 times cheaper than whole
life. In other words a whole life premium that buys $100,000 coverage, could
give you $500,000 of term life coverage.
4. How long
a period should I cover?
The guidelines in the above table will give you a rough idea or just call
or email us for any clarification.
5. How much
should I buy?
For such items as covering the amount owed on a mortgage, the answer is simple.
For general family coverage, the yardstick is approximately 5 to 7 times
the family income. So if you earn $50,000 you need $250,000 to $350,000 for
the needed period.
The general rule is don't overbuy, but don't under insure.
6. But what
if I don't need all the original coverage in the coming years as dependants,
such as my parents, have died?
Just write the insurance company and tell them by how much you want to reduce
the amount of coverage and they'll lower the premium proportionally.
7. What
about interest rates and inflation etc..?
Use our insurance
calculator and work out some scenarios to come up with a figure that
you are happy with.
8. When
should I buy?
If you think that you need some life insurance you'll never be younger than
today.
9. If whole
life is 5 times more expensive than term, why are you even mentioning it?
At older ages and some joint cases the premiums may not differ that much
if you compare a term with a whole life. In other words, you may pay a little
more for the whole life, but get back a lot of it if you survive a certain
period. Each case must be considered on its own merits. But you can never
go wrong with a cheap term life policy.
10. My agent
told me that whole life is for the whole of my life and the premiums will
never increase?
True and the premiums on a term to age 100 policy will not increase either.
And at age 100, most companies wave any further premium payments!
N.B. Term to age 115 is now available in some U.S. States.
11. So how
This question we love to answer. Go to Get
a Term Life Insurance Quote and enter all the details. You'll receive
ALL the quotes from the companies within seconds.
12. But
which one should I choose?
We suggest the lowest priced "AA" company, such as Transamerica,
Canada Life, Empire Life, Standard Life, etc; all the names you are familiar
with. Indeed AIG, which is ranked "AAA," turns up as the cheapest
company fairly frequently.
13. Is this
the best way to proceed?
Yes, as you can shop in your own home at your own pace.
