Compare Term Life Insurance

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On the surface, term life insurance seems simple and straightforward. For a given premium each month, the insurance company guarantees to pay your beneficiary an agreed-upon lump sum in the event of your death, so long as you die within the term of the insurance and all of your premiums are up to date. There are, however, a few details that make it advisable to shop around for term insurance before settling on one policy over another.

Decide on the amount of coverage your beneficiary needs
When determining how large of a policy to take out, some typical considerations include how much will be needed for burial expenses, to pay off the mortgage, credit cards and other debts, amount needed for college expenses for minors plus living expenses for your loved ones for either the rest of their lives or for a certain number of years. Other considerations may enter into your calculations as well.

Determine the length of time you wish the policy to run
All term life insurance policies have an expiration date. If you should die even one day past the expiration of the policy, the policy will not pay anything. Term life premiums remain level for the term of the policy. The longer the policy runs, the higher your monthly premiums will be. Typically, term policies are for 10 or 20 years, although other time frames are available.

If you wish to take out a new policy when your old policy ends, you will typically be required to pay a much higher monthly premium for the new policy. Policy prices are primarily determined by your age, your health, the amount of the policy and the length of the policy.

Compare the monthly premium for the exact same policy between several different insurance companies.

Such comparisons are easily made online, at any number of sites that allow you to compare prices and receive quotes from several different companies at the same time.

Look for policies which are guarantee renewable at the end of the term.
This becomes an issue if the insured's health deteriorates during the term of the policy. Without a renewable guarantee, the company would not be required to renew the policy based on the insured's health - but with the guarantee the company has no option but to renew.