Online life insurance quotes are a useful tool for helping you determine the amount of life insurance coverage you may need and the approximate cost of that coverage. Online quotes have become the most popular initial first step for individuals buying life insurance. However, before getting a free quote online, it may be helpful to understand all the factors that play into the calculation of your premium and what information you may need to have on hand to ensure the accuracy of your online life insurance quote.
How Much Life Insurance Coverage is Necessary?
The amount of coverage and the length of your policy hold the most significant weight in regards to the accuracy of your life insurance quote and, ultimately, the price of your premiums. In order to effectively determine how much life insurance coverage you need, you have to take several factors into consideration, including your age, who your beneficiaries will be, pre-existing medical conditions and final expenses.
- Age. It is recommended that you purchase your insurance policy at a young age. Premiums increase simply based on age. If you invest in a policy while you are young and healthy, your premiums will be lower. An online quote will not hold the same value today as it does a year from now. If you are considering a policy, today is always the best time to get a quote – even if your life changes and you require more coverage, edits can be made to your policy that may not impact your life insurance premium as significantly as your age and health.
- Determining Beneficiaries. The beneficiaries of your life insurance policy play a significant role in determining the price of your policy. If the beneficiaries include your wife and young children, you will need to consider how much money will be necessary to cover their daily, monthly and weekly living expenses, including the home you live in, the college tuition plan for your children and life expenses like your child’s first car or his or her wedding. In life, you have grand plans for these events, but to ensure they happen just as you imagine, a comprehensive life insurance policy is necessary. You must also consider whether or not your spouse is currently employed and if he or she will be able to work in the event of your death. Consider all the things you plan to provide for your family throughout your entire life and place a value to each to determine adequate coverage.
- Pre-Existing Medical Conditions. The most affordable life insurance policies require a medical exam prior to the purchase of the policy. Family medical history, current medications, lifestyle and tobacco use all impact the outcome of your premium. An online quote takes into account your body mass index (BMI) – which is a ratio calculated by your height and weight – as well as asks you if you use tobacco and if you are in good health. Honest answers are extremely important to the accuracy of your quote and, while the answers to these questions may not disclose all the details of your health, these heavily influence the price of your premium.
- Final Expenses. When considering just how much coverage you need, don’t forget to include your final expenses. These expenses are the costs associated with your final medical needs, burial or cremation, the funeral and the like. Your family will be grief-stricken; therefore these expenses are quite important in easing their transition in light of the great loss.