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Step 1
Choose a term that is right for you. Term insurance is purchased for the number of years that you are expected to live. You should pick the lowest number of years appropriate for you because it will be cheaper.
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Step 2
Buy a term life insurance policy with guaranteed rates as opposed to annual renewal rate which increase yearly. With guaranteed rates your premium rates will never increase.
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Step 3
Make sure you understand all of the terms of your term life insurance policy. The biggest mistake most people make is that they purchase a policy they don't understand. Have the insurance agent spell out exactly which causes of death qualify for a payout and which don't.
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Step 4
Purchase a term policy that is convertible. Since most term life insurance policies only go for 30 years, a person who is 20 could have a policy expire in their 50's. In this case, if your policy is convertible, you will be able to switch it over to a whole life policy. Although the annual premiums will be higher, they will be lower than if you had to purchase an entirely new policy.
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Step 5
Purchase a term life insurance policy that is renewable. This means that when your current policy ends, you can renew it without being required to go through a medical exam.
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Step 6
Comparison shop for the best term life insurance rates. Term life insurance rates vary greatly between insurance companies. TO find the best term life insurance rates, go to www.insure.com or www.esurance.com.
