Many online insurance companies provide a free online calculator that allows you to estimate the amount of coverage you will need. The calculator also provides a life insurance quote that will tell you how much the policy will cost you. It removes the need for pesky life insurance salesmen who may hide information.
Online calculators ask a set of questions and you need to fill in the answers. There may be more than one web page where you enter the information. You may be asked personal questions about your earnings, savings, dependants, etc. Don't worry though, because this information is never given to anyone else but only used to calculate how much coverage you really need.
You first need to determine: how much expense will be incurred for the funeral and estate settlement, the immediate needs of your family and the long-term expenses that your family may incur.
A typical calculator may ask for the following information:
• Date of birth, you height, weight, tobacco use, health status
• Cost of funeral expenses
• Special one time expenses like mortgage balance, debts, college expenses for your kids, and any other special expenses
• The type of accommodation you have, owned, rented, the rent/mortgage payment, any housing loans
• Your typical household financial situation like living expenses, income of your spouse, and social security benefits
• The number of years up to which you would want to provide funds for your spouse and children
• Assets you have that generate income like annuities, shares, or mutual funds
After you enter all this information, the term life insurance quote results are displayed which predicts how much shortfall your family will face and how much additional coverage you need. You can even compare the rates to determine your best option.
The next step would be to decide which plan best suits your needs. Online insurance provides detailed plans that tell you what the yearly or monthly payment will be for that type of policy.
|
