Term life insurance is the number one form of life insurance in the nation with no close second. Ever since it was first made available to the public, it become the policy of choice to many Americans. Term life insurance gives you all the best features such as a high face amount along with a much lower premium. Many people shop for the best life insurance rates by price alone.
Many years ago your only choice was permanent plan designs such as Whole Life insurance. These plan designs were very expensive and people would not be able to afford the death benefit that they actually needed. The cost was just to high to easily afford.
When people shop for life insurance today, they shop for the best Term life insurance quotes plus the lowest rates possible. We work with over 40 of the best life insurance companies in the nation. All of these companies offer Term life insurance as their premiere plan design.
Is Term life insurance going to be a good fit for your specific needs?
Most people will benefit from purchasing low cost Term life insurance. A persons needs for life insurance can vary but Term life insurance can usually do a good job at providing excellent financial protection. Most people look at Term as the best possible choice due to the low cost factor.
Here are some of the characteristics of Term life insurance.
- They offer a large selection of Riders available to customize the policy design for you.
- Term can be converted to permanent Universal Life policies.
- If you only need life insurance for a specific time, you can designate the time period.
- Your death benefit is level and never changes with time.
- Your premiums will always be exactly the same from year to year.
- The cost of the policy will always be the most cost effective compared to other plan designs.
If you want permanent life insurance for the rest of your life. Affordable Term life insurance may still be a great choice for you.
If you are wondering how Term can still be a good choice even though it is a temporary plan design, keep on reading. Term normally has a 5, 10, 15, 20, 25 or 30 year term period before it expires. But, as I mentioned it can be converted into a permanent Universal Life insurance policy at a specific point in time. You can also combine a separate Universal Life policy to have the best of both worlds.
You can buy low cost Term life insurance for the major point in time where you will have the highest financial liabilities. The additional Universal Life insurance policy can be purchased with a much lower face amount. The Universal Life policy will still be giving you financial protection long after the Term policy has expired. This method works out great for people and creates a perfect life insurance portfolio.
Low Cost Term life insurance vs. Whole life insurance.
There is absolutely no comparison in comparing low cost Term life insurance vs. Whole life insurance. Many years ago Whole Life Insurance was sitting on top of the hill as the the number one rate life insurance product. Today Whole Life insurance is near obsolete and many companies no longer even offer it. If you are looking for a permanent life insurance product, check out the Universal Life insurance plan designs.
The best Term life insurance has an arsenal of riders that you can add to the standard plan design.
Here are just some of the riders available to add to a Term policy.
- Guaranteed Insurability Rider
- Return of Premium Rider
- Child Term Rider
- Accidental Death Rider
- Long Term Care Rider
- Accelerated Death Benefit Rider
- Family Income Death Benefit Rider
- Waiver of Premium Rider
How much does Term life insurance cost?
The cost of affordable Term life insurance will depend on several main factors such as.
- Your Current Age
- Your Gender
- Driving Record
- Credit History
- Health History
- Height & Weight
- Dangerous Sports Involvement
- Hazardous Occupation
- Parents Health History
Some applicants will fall into a High Risk Life Insurance classification.
Usually the main factors that will impact your rates will be medical conditions, your occupation and the sports you are involved in. If you have any serious medical conditions, your rates can increase based on the severity of your health conditions. For example, Cancer, heart disease, and any condition that is life threatening can increase your rates. Your application could even be declined.
If you have a dangerous occupation, your job will also be taken into consideration. Occupations such as pilots, underwater divers and storm related electrical workers can have an increase in on the job deaths due to their dangers. Dangerous sports can also come under the microscope such as drag racing, skydiving and scuba diving among many others. Any sport that has a elevated history of fatalities will be taken into consideration.
Group Term life insurance through your employer.
There is nothing wrong with having Term life insurance through your employer. The only problem is you can’t count on it being there for the long haul if it’s through your employer. Iy you lose your job the life insurance could be terminated. If your employer decides to cut expenses, your life insurance could be terminated for this reason also. No matter how secure you think you job is, you cannot depend on life insurance with your employer. Especially in this day and age of nobody having total job security anymore. Your families financial future depends on having your life insurance so a personal policy is the only way to go. You can consider life insurance through your employer is just supplemental coverage at best.
Health history questions on a life insurance application.
If you have a medical condition it might not make any difference on a life insurance application. Here are some questions that will hold a lot of weight on a life insurance application.
- Have you been admitted to a hospital in the last 10 years?
- Have you been prescribed any chronic medication in the last 10 years?
- Were you required or asked to have surgery in the last 10 years?
If any one of those questions apply to you, don’t panic whatever you do. For all practical purposes, you may just have to answer a few more question because of them. Many times a person can have a health condition that is controlled with medication and still receive preferred rates.
Your height and weight are very important factors when applying for Term life insurance.
If there ever was an important ingredient on a life insurance application, it is your height and weight. Applicants that are overweight or obese can be looking at increased rates or even a decline. Being overweight is something life insurance companies take very seriously. A person that is overweight can develop serious medical problems such as Diabetes, heart disease and strokes. Being overweight or obese can definitely play a big part when deciding your health classification.
Here are some very effective tips to help you save money when purchasing the best Term life insurance.
Tip #1 – Life insurance rate bands and how they work.
Life Insurance Rate Bands – Purchasing a face amount that will allow you to take advantage of life insurance rate bands will help you save money. Just something that is very simple like rounding off a number like $200,000 to $250,000 can work wonders. As another example, if you are interested in a $450,000 face amount, rounding it off to $500,000 would reflect another decrease in the cost per $1,000 in coverage. Most people have never heard of rate bands, but working with them can really save you money.
Tip #2 – Laddering policies and how this can save you more money.
Laddering Policies – Laddering policies is where you use two or more policies with different term periods to create a life insurance portfolio. Here is a good example of how laddering policies can reduce your life insurance expenses. If an individual needs $1,000,000 in life insurance coverage you don’t have to buy one policy with a face amount of $1,000,000. Let’s just say you need life insurance for 30 years with a death benefit of $1,000,000.
In this scenario you need the the most coverage for the first twenty years to cover a mortgage and college tuition. You can purchase a 20 year Term life insurance policy for let’s say $750,000 and then purchase another policy for $250,000 for 30 years. After twenty years, the 20 year Term policy drops off and you are now left with another 10 years for $250,000. This will be a lot less expensive that purchasing on policy for 30 years with a $1,000,000 face amount.
Tip #3 – Pay your premiums on an annual basis.
Paying Annually If Possible – Your mode of payment can also help save you money. You can save as much as 10% paying on an annual basis vs. monthly or quarterly. A lot of a persons billing mode will depend on their budget. If you can comfortably afford to pay your premium on an annual basis, go ahead and do so. This will help you save money for years to come when you look at how many years you will be paying premiums.
Tip #4 – Ask for reconsiderations or apply with another carrier.
Reconsiderations – If you and your agent receive the final rates and you believe the health class is possibly unjust, ask to be reconsidered. If this does not work, you agent can use your application to re-apply with another carrier.
Tip #5 – Carefully choose the most appropriate face amount.
Face Amounts – A face amount is also known as a death benefit. Make sure you spend enough time to carefully plan out your best face amount needed to provide just the right amount. If you buy too much you will be overinsured and you will have higher premiums to pay. If you don’t by enough your dependents can be left with a financial dilemma. Look closely at what your dependents would need to live on if your income suddenly stopped. Use our face amount calculator to help you arrive at a logical number.
Medical Pre-Screens can help to place you with the most applicable life insurance company.
A medical pre-screen only takes a few minutes to complete but it could help save you a lot of money. We offer a medical pre-screen form that we have applicant with health conditions complete. This completed form gives us the advantage to speak with numerous life insurance companies to see who will offer our applicant the lowest rates. We get all health conditions out in the open before the applicant applies. Your identity is never given to the carriers on a medical pre-screen, just your health condition.
Rate class changes and “Flat Extra” fees are given to High Risk life insurance applicants with serious health conditions and dangerous jobs or sports.
Read our blog post concerning how life insurance rates can increase during the underwriting process and how the rates are actually calculated. This is a lengthy subject so I wrote a separate blog post just on this subject. Health class changes or flat extra fees are just a standard way to adjust a premium to fit the added risk a life insurance company is taking.
All life insurance rates are regulated by law in each and every state.
Many consumer believe that the price of insurance can vary from one agent to another. Nothing could be farther from the truth. There is no such thing as playing “let’s make a deal” like with purchasing a chevy or a new refrigerator. There are no “sales prices” or special discounts or rebates. The price of all forms of insurance are etched in stone with no variation from where you buy it. Each state has a department of insurance that regulates all of the insurance prices. If the insurance product is exactly the same, the premium will also be exactly the same. Read our blog post life insurance rates are regulated by law for more information.
What life insurance companies are the most competitive?
Some of the best companies we have found with low rates are Banner Life, American General, Protective Life, Principal Financial and Transamerica. Activate our quote engine to see what company would offer you the lowest rates. This all depends on the persons age, gender, health, lifestyle and many other variables.
Don’t hesitate to call us for help!
Our mission as independent agents is to help you find the best term life insurance at the lowest possible rates. We have been helping folks do just that for well over 20 years. Feel free to call us toll free at 800-897-5699 7 days a week. We can answer all your questions over the phone with no cost or obligation. Check out our “about us” page to learn more about us and our business.