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Rules to Follow for Term Life Insurance!

Christopher James


Purchasing a term life insurance policy is an affordable way families can protect themselves from an unforeseen loss of income. In exchange for paying your monthly premiums. Purchasing a term life insurance policy will entitle beneficiaries to a potentially large financial payout that can pay for monthly expenses, college, pay off debts, and whatever bills come up.

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Consider Multiple Companies

It’s easy to convince someone to buy a life insurance policy—life insurance is protection that has obvious benefits. But because so many people are eager to secure a policy, they’ll be tempted to jump at the first policy (or company) they happen to encounter. We recommend comparing multiple providers to make sure you find the one that has all the benefits you need. Shopping for life insurance online is a great way to compare many different policies and companies in a short amount of time.

Financial Stability 

The first most important factor is the financial stability of that insurance company. This is easy to find through Better Penny’s life insurance comparison table and from the Standard & Poor's ratings. You want a company that has some type of A rating. (AAA to A-)

Underwriting Features 

Secondly, the process to get a policy should align with how you like to work. For example, newer companies can provide coverage instantly after payment is received and will do all their underwriting with no medical exam. Just answer questions online.

Available Coverage

All companies provide different levels of coverage so it's important to know how much coverage a company can provide before going through the application process. Sites like Better Penny do all the busy work on policy size available, financial stability, customer reviews, and underwriting features so you can choose the right company in minutes instead of hours.

Determine Coverage

A lot of term life insurance policies tend to have large payouts (death benefits). It is not uncommon to find a life insurance policy that provides a death benefit of $1,500,000. When people hear these large numbers, they tend to assume these policies will have a high premium each month. However, it is important to note that term policies are designed with cost in mind. For example, an additional $1,000,000 in death benefit could potentially cost as little as $15 per month.

Accurate Information

Anyone applying for coverage will need to go through at least some basic underwriting, where your prospective life insurance provider will determine a monthly premium based on some basic factors. For term policies, these questions can be completed online. Questions include coverage amount age, health, family health, lifestyle risks, and more. Make sure to answer as accurately as possible since intentionally providing false on an application can cause issues.

Term Length

The death benefit amount of coverage you purchase is just one factor in the coverage. The other important number to consider is how long you need the coverage. The length of coverage affects the premium price and should be aligned with how long you need to replace that income. An example way to determine term length is to buy coverage that provides coverage until your children graduate their highest level of education.


Most people reading this article are purchasing term life insurance for the first time, so it is important to focus on the key components like term length, coverage amount, company stability, and time you can invest into getting coverage. By focusing on these items, you can get the best outcome without feeling overburdened. Make sure to Better Penny to compare top term life insurance companies to help you save time and get the right coverage for your situation.