Substitute Insurance

Generally considered the most economical way to obtain life coverage, term life insurance is very straightforward. A person contracts with an insurance company to insure his or her life for a limited time and for premiums that will remain the same for the duration of the contract.

When the life insurance reaches the end of the term, the insured can enter into another agreement with the insurance company or allow the policy to lapse. Some policies are renewable with some adjustment in policy premiums so that no lapse in coverage occurs. Understandably the older a person gets, the more the term life insurance premiums will cost.

Beginning Coverage Young is a Positive

Generally, most term life insurance is no longer available after age 95, unless that age is reached during a covered term that began many years prior. Getting a life insurance quote for term life at a young age will result in much lower premiums than in advanced years.

Economically a Good Choice

Compared to whole life, permanent life, universal life, or variable universal life; the money saved from a term life insurance policy can be deposited into an IRA, which is tax deferred and increases based on future investments. One advantage of term life insurance is the lower cost allows for investment in other ways to build up a portfolio for retirement and to offer some means of protection for beneficiaries.

Term life insurance is a good choice for young adults who don’t have a lot of money to spend on insurance, but who still need to offer their families protection in the event of an untimely death. The amount of benefits offered for the young individual are generally much higher than for an older individual.

Term Life for Future Planning

Premiums are based on the length of the term and the age of the insured at the time of the policy’s inception. Typical terms are 10, 20, and 30 years. It is entirely possible that an individual who regularly puts money into an IRA may not need life insurance coverage at the end of a 30-year term. A young insured can expect very good premium rates for a short term because the insurance provider is much less exposed.

Term life insurance premiums may be paid in lump sum per year or on a monthly basis depending on how the policy is set up. Anyone seeking term life insurance info should seek guidance from a reputable insurer to discuss which life insurance coverage types best suit their specific situation.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

A medical exam required by the insurance provider makes many individuals not bother to attempt to obtain quotes for life insurance because they fear they will fail the exam. They may not realize there are policies for life insurance with no medical exam requirement.

What Policy Types Do Not Require a Medical Exam?

1. Simplified Issue Life Insurance – the applicant provides information regarding their medical history on the policy application but no exam is required.

2. Graded Benefit Life Insurance – no questions are asked about health history and no exam is required. Graded Life policies are more complicated to purchase than other policies and are intended for those in late middle age and older.

3. Guaranteed Issue Life Insurance – no health history or medical exam required; no applicant can be turned down.

Why Get Exam-Free Life Insurance?

For typical life insurance policies, the application process can take anywhere from 3-6 weeks before a policy is issued. The underwriting process is shortened when no medical exam is required, making it possible to have a policy issued in hours or days rather than weeks.

Another reason for no-exam life insurance is that it makes it possible for applicants with health problems and/or in their advanced years to obtain coverage when they will most likely be denied for exam-required policies.

The Cost of Exam-Free Life Insurance

Life insurance premiums are calculated based on life expectancy. Naturally lower rates apply to applicants in good health and in their younger years. A medical exam gives the insurer a more accurate picture of life expectancy.

A higher premium rate usually is accompanied without an exam, because the insurance provider is placed at a higher risk. The exam allows the insurance provider to place you in the right rate class and charge you based on your actual health profile. While a medical exam can be a hassle and an inconvenience, if you are in good health it is the wiser choice because of the potential rate savings.

While no-exam life insurance might be a quick and convenient way to obtain coverage, don’t expect it to be the cheapest. Then again, any coverage is better than none, and if you are avoiding seeking life insurance coverage because of health problems or your age, no-exam life insurance may be the perfect solution for your situation.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

Reading a policy for term life insurance can be very confusing and with some of the terminologies use you probably had to get a translation into plain English. Aside from questions on terminology, there may also be many questions regarding what the policy includes and excludes.

Here are some tricks on understanding life insurance quotes:

Online Quotes for Term Life Insurance

When you seek a quote online, you must provide accurate information about yourself to get a response. The process takes very general pricing structures and applies them for a quick assessment of your current age and health. A quote may end up varying somewhat once more extensive information is made available that effects the true cost of a policy, such as information from a medical exam.

A price that is higher than a quote you first received may be a shock to you, but you may also get a quote that is lower than originally estimated. Insurance providers are not attempting to give an erroneous number just to get your commitment; it’s just that after a more in depth assessment of your health and living habits they can get a better gage on what premium amounts will be.

Why Rates Increase for Term Life Insurance

The person insured is the main cause for why rates will increase. Healthy people who will usually live long lives, factoring out if they are involved in an accident or diagnosed with a health problem, are what insurance companies prefer, because they are a lower risk. Some of the causes for higher premiums include:

* High cholesterol – There is no industry standard on cholesterol, but high levels will increase premiums. * Height to weight ratio – The more variation from the recommended height to weight ratio, the higher the term life insurance rates because of the health problems associated with being over or under weight. * High blood pressure – Blood pressure is linked to a number of health problems, and each point to a shortened life cycle. * History of family health – Genetics is a underlying factor involved with someone’s health. This is why your questionnaire asks about the history of disease and health problems in your family. * Lifestyle activities – Participating in dangerous sports or activities will increase your premiums, if you can get insured at all. * Driving history – Someone with tickets for reckless driving or speeding are generally red flagged as dangerous and no one wants to insure them.

Life Insurance Choices

The two top reasons people give when asked what they want from a life insurance company are price and performance. It is possible to get many different prices for term life insurance based on the companies that quote coverage. Factors like the rating of the company and who underwrites the policies all influence pricing. High financial stability for an insurance company is identified from a rating of A or A+.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

It is not something that comes up often because college age adults generally have other things on their mind besides life insurance. Some people might say it is a waste of money to insure someone who doesn’t have many responsibilities outside of getting an education.

Less than half of all college students have life insurance policies. The rate was under 40% at the turn of the last century and hasn’t climbed more than a few points since. Many parents have a small life insurance policy on their children while they grow up, but this often ends when they go to college and a coverage void is left.

One reason why life insurance makes sense for college students is that it provides compensation to the parents for the huge expenses they pay out for a young adult to pursue an education beyond high school.

More often than not a financial burden has been placed on parents from providing for a child for all their life and the monies back from life insurance can ease that burden in the event of their child’s death. It is not that a parent wants to receive money rather it is a financial ease in the time of mourning.

Debts might be outstanding that will still need to be paid even if something were to happen to the student. A college loan, for example, is often co-signed by a parent, and the money is expected to be paid back even if the student dies.

This sounds harsh, but it is the way businesses are run. If a family gets a loan to pay for college, a life insurance policy can help ease that financial burden as well as others such as burial expenses and/or auto loans.

Another reason for college students to consider coverage is that the cost is very low for term life insurance for a person at that age that is in good health. Life insurance is recommended after college anyway, so beginning a few years early is not a bad idea. It will often save money over the duration of a 30-year term life insurance policy to begin the policy early.

There are also college students who are married while they are attending school. Graduate students are often married and even have children. All the primary reasons for having life insurance are already in place for these students.

Forgetting about life insurance for students can flow over into the first years of employment, marriage, and on into life. Something that costs so little at an early age and provides financial security for loved ones should not be considered lightly.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.