How do I know if I'm paying too much for my life insurance?

If you bought your life insurance policy more than a few years ago, you may be paying too much. Why? Because life insurance rates within the last decade have come down dramatically. Checking whether or not you're paying too much is easy. Just visit a life insurance brokerage firm's website like AccuQuote or Term4Sale to compare rates from hundreds of companies. After checking these sites and doing a little price comparison, if you think you're paying be sure to call for a more accurate quote. You may even want to go through the application process to see what offer the life insurance company comes back with. This is FREE to do - at no cost to you. But remember to keep your existing policy in force. DO NOT cancel it until you are 100% sure that the new policy is less expensive and you are approved.

What is the difference between level term life insurance and guaranteed level term?

Term insurance is, by definition, temporary insurance. Each year, a premium is paid to cover the risk of death during that year. Term insurance has no cash value. The only way to collect anything is to die during the term. If death occurs, the beneficiary generally collects the face amount (death benefit) of the policy, free of income tax.

Historically, term insurance premiums increased each year, as the risk of death became greater. While unpopular, this type of coverage is still available and is commonly referred to as annually renewable term (ART).

Guaranteed level premium term have become very popular because the premiums are designed to remain level for a period of 5, 10, 15, 20, 25 or even 30 years. These policies have become extremely popular because they are very inexpensive and can provide relatively long term coverage. But, be careful! Most level premium term policies contain a guarantee of level premiums, however some policies don't provide such guarantees. Without a guarantee, the insurance company can surprise you by raising your premiums, even during the time in which you expected your premiums to remain level. Needless to say, it is important to make sure that you understand the terms of any insurance policy you are considering.

Where is the best place to buy term life insurance?

The best place to buy term life insurance is the from the company that provides you with the least expensive premium. Most products are the same company to company, but the underwriting guidelines are different. For instance, if you have a family history of cancer, one company may charge you more. So, the key is to buy life insurance from the company that deals with your particular situation whether it's a health condition, family history or risky behavior such as piloting.

So how do you find out which company is best for you? I would suggest shopping online. Often times, people are scared of using the Internet for financial transactions. What most people don't realize is when they use the Internet for life insurance most of the time they can't really "purchase online". They must talk to a licensed agent and fill out physical paperwork before they are able to buy. They can get price quotes online, but that's about all.

As premiums go down, pick up life insurance

This has been a hot topic among reporters lately and I wanted to share this article with you to help stress the fact that life insurance is cheaper than it's ever been in history. This article, written by Sandra Block (a USA Today reporter) was posted in the Courier Post online:
The next time your party guests linger past your bedtime, ask them how they feel about life insurance. Watch that they don't trip over your cat as they sprint to the door.
Nobody wants to talk about life insurance. But if you have young children or others who depend on you, you should have it.

Millions of Americans have no life insurance, and millions more don't have enough to provide financial security for their loved ones. That's a shame, because if you're reasonably healthy, you can buy a lot of life insurance without spending a lot of money. Average premiums for individual life insurance have been falling about 5 percent a year since 2000, and they're expected to drop an additional 4 percent in 2007, according to the Insurance Information Institute.
"The rates are as low as I've ever seen," says Byron Udell, CEO of AccuQuote, an online insurance broker.

Some tips for buying life insurance:
To save money, buy term insurance. There are two types of life insurance: term and permanent. Term provides a benefit only if you die during the period covered by the policy. Permanent life insurance remains in effect as long as you pay the premiums. Part of the premium goes into an investment account. You can withdraw some of that money or borrow against your policy.

Don't rely on your employer's life insurance policy. Many companies offer life insurance as a benefit, but it's usually not enough to provide financial security for your family, Kalen says. Most workplace policies cover one to two times your annual salary. Financial planners generally recommend buying enough insurance to replace seven to 10 times your annual salary.

If you have health problems, don't assume you're uninsurable. Advances in the treatment of cancer and other diseases have led insurers to lower premiums for people once considered high-risk. In the past year, Hartford has reduced premiums for women who have been treated for early-stage breast cancer and men who have had surgery for moderate levels of prostate cancer. Prudential announced last week that it will lower premiums for people who have been successfully treated for heart disease