Do Your Homework When Shopping for Term Life Insurance

A leading industry organization is offering consumers some tips if they're in the market for term life insurance or similar coverage.

According to the Insurance Information Institute, about 68 million adults currently have no life insurance, and many more lack sufficient coverage to ensure their family's financial stability in the event of their death.

"If someone relies on you financially, you need life insurance. The premiums are very reasonable when you consider the level of protection you receive," said III spokesperson Jeanne Salvatore.

When it comes to term life insurance, consumers should know whether a policy includes renewal guarantees that allow them to start new terms at the end of an old one, usually at a somewhat higher rate. The benefit of a renewal guarantee is that a policy can be renewed without a medical exam or having to provide "evidence of insurability" as the organization puts it.

Consumers are also advised to assess the quality of various companies, to check for group rates and to try to buy coverage while healthy. Following these steps should be sufficient to ensure access to a reasonable term life insurance rate.