Keys To Getting The Cheapest Smoker Term Life Insurance Rates Online
In order to get the cheapest life insurance rates, one first needs to evaluate their financial needs accurately. This goes for anyone shopping for life insurance, not just smokers. And it is very enticing for someone to simply want to rush through the online application process when shopping for term life insurance, because it is a very easy and simple process and no one wants to spend a lot of time on something as gloomy as life insurance. However, in order to ensure that you are getting the best rates and your family is adequately protected, it is important that you take the time to determine your familys financial needs.
There no is reason to purchase more life insurance coverage than you actually need. On the flipside, there is absolutely no benefit of purchasing less coverage either. Both instances will result in loss of time and money. If you are going to protect your family with life insurance, you might as well do it right. This is especially true for policyholders who are smokers; because their rates are going to be higher than regular term insurance rates therefore purchasing the wrong amount could result in a sizeable loss.
The first step when determining how much coverage you will need, is to first determine how much your loved ones (survivors) would need. Luckily, must life insurance agency sites will features tools and calculators that will help you figure this number out. The factors are as follows:
1. Determine your families immediate cash needs. This is a hypothetical, if you were gone tomorrowwhat would they need. Think about funeral costs, medical expenses, probate costs, etc. These would be immediate. You will next want to think about their long-term needs, which would include child-care costs, education, and even mortgage payments.
2. The next step is to factor in your own debts. Even though paying off a debt can be done overtime, it is ideal to pay it off immediately.
3. Give yourself credit for what you already have. Yes, you have a lot of needs but you may also have access to assets that can help fulfill those needs. Subtract your assets from the total of your needs; the reminder is what a life insurance policy would cover. An existing asset is anything from a house, savings or any other investments.
Once you have calculated your needs, and subtracted your assets, your final number is going to be the size of death benefit you will need. This is also known as your smoker life insurance policys face amount.
While you were calculating the needs of your survivors, I bet you thought about when and how long they would need to maintain certain debts, such as the house payment or college tuition. Our costs of maintaining certain lifestyles very during our lifetime, depending on what life stage we are at, however this is exactly what term life insurance was designed for.
Term life insurance policies can be purchased in many different lengths of time and they can be changed after the policy goes into force. This way, the policy changes with you as you age and as your families needs change. Term life insurance is a great product for smokers, because its purpose is for an event such as premature death. The rates will be understandably will be increased for policy-holder whom is a smoker. Term life insurance policies can typically be purchased in increments of 5, 10, 15, and 25 years. However, other policy terms lengths can be found. The cheapest policy length will understandably be the shorter options; however, it is more beneficial to purchase a longer-term policy. Since your policy will expire, there is a high chance that you will still have a need for life insurance and will have to apply all over again. When purchasing your new policy, you would have aged and may even be in a different health rate class (which determines your final rates). These types of changes would increase your life insurance premiums. This is why it is better to purchase your term life policy for the total length of time that you will need it, regardless of a 5-year option being the cheapest. If you chose to purchase the shortest-term policy, you could easily end up paying more for your next policy or even be denied term coverage if you had developed a serious illness.
Term life insurance is a great option for smokers, but for reasons other than just the most affordability. Because you can decide how long you want your policy to last, you have the freedom to make a beneficial change to both your health and your rates. If you were planning on quitting smoking, but needed a life insurance policy now, a term policy would be the perfect option. A smoker could purchase a short-term policy to cover them while they changed their smoking habit. This way they will have coverage, but will have a chance to improve their rates once the term policy expires. When the now non-smoker reapplies (as long as nothing else has changed health wise) the rates would have dramatically improved and would the ideal opportunity to purchase a longer-term policy.
by: Angela Rosas