Term Policy

Term life insurance is the most basic form of life insurance. It provides coverage for a specified period of time (e.g. 1, 5, 10, 15, 20, 25, or 30 years) in exchange for a specified premium. If the death of the insured individual occurs within this period of time or term period, the insurance company will pay the death benefit. If the term period expires while the insured individual is still living, the policy terminates and no death benefit will be paid.

Term insurance provides a low cost way to get maximum insurance protection for a certain period of time. Term insurance builds no cash value. It pays a benefit only if you die during the term of the policy coverage. If death occurs, the beneficiary collects the face amount (death benefit) of the policy income tax free.

Many insurance companies offer level premium term for a period of 5, 10, 15, 20 and 30 years. These policies have become very popular because of their low cost and the availability of a relatively long term of coverage.

Initially, premiums are generally lower than those for permanent insurance, allowing you to buy higher levels of coverage at when the need for protection often is greatest.

It's good for covering specific needs that will disappear in time, such as mortgages or family income needs for children. Term insurance is an effective way to get the most coverage at the low cost for up to 30 years.

Once the guarantee period expires, premiums increase as you grow older. Coverage may terminate at the end of the policy term or may become too expensive to continue. Generally, the policy doesn't offer cash value or paid-up insurance.

If the low money outlay is your main concern, and your insurance need is for a period of 20 years or less, term may have an advantage. If your need for coverage will last beyond 20 years, a low cost Whole Life policy may be more effective. Many term policies carry a conversion privilege that will allow you to covert your term coverage to endowment or a Whole Life policy without a medical examination. It is important to check the conversion privileges of the term policy before you make your purchase.

Your coverage need will depend on your individual circumstances. Factors you should consider include anticipated final expenses (e.g. medical bills and burial costs), living expenses for your surviving family members, any outstanding loans (e.g. auto and credit cards), the outstanding balance on your mortgage, anticipated education costs for your children, estate taxes, and business continuation expenses.

1. Age - Insurance is primarily age rated. Therefore, if you are very young, your rates will be very low. If you are older, 50 years and up, you can expect to pay more.
2. Sex - Males will cost more than females.
3. Smoker Status - If you are a smoker or use chewing tobacco, you can expect to pay more. All insurance companies test for nicotine in your blood, so lying about your status will not work. Depending on the insurer, you will be considered a non-smoker if you have not smoked, or chewed, in the last 12 months.
4. Medical conditions - All insurers try to limit major risks or claims. Therefore, you can expect that insurers will request your medical records from your doctor. They will also test for AIDS and do blood and urine analysis. If you suffer from a condition like depression or have high cholesterol, some firms may rate you up; charge more, for the added risk.
5. Dangerous hobbies - In some cases insurers will either decline to insure you, or charge you more, if you engage in activities that are dangerous. If you fly ultra light planes, parachute, drive racecars or motorcycles, you may be declined or rated.

Yes you can take more than one term insurance plan. It needs to be declared to the insurance companies regarding the same.

Premium of a term insurance remains the same throughout the term of the policy provided all other factors remain the same.

Medical examination is necessary for all term insurance plan.

Most term life insurance policies are convertible to permanent life insurance policies. Convertible policies can generally be converted to permanent policies within a specified period of time from policy issue, without providing new evidence of insurability (unless you increase your benefits).

It is certainly possible, but not guaranteed. Your final rates will be determined by the insurance company through a process called “underwriting”. Underwriting includes a review of your current health status, medical history and family history among other things.

Underwriting will determine your final rating class, which will establish your final premium rates. Your rating class may or may not be the same as that quoted on our Web site.

The accidental death benefit rider is an optional policy provision that pays an additional amount over and above your policy coverage amount in the event the insured's death is caused by an accident. Even without this rider, your term life insurance policy will pay the stated death benefit in the policy if the insured's death is the result of an accident.

The waiver of premium rider is an optional policy provision that provides for the payment of a life insurance policy's premium in the event of the total disability of the insured. Age limitations and coverage maximums usually apply.

All of our partner insurance companies require a basic paramed exam in conjunction with a life insurance application. Insurer third party medical examination team will contact you after receiving your completed application. They will work with you to arrange your exam at a time and location most convenient to you. There is no additional cost to you for the exam.

A basic paramed exam includes the following:

• Height/weight measurements
• Blood pressure readings
• Heart rate readings
• Urine sample
• Blood sample
• Medical history questionnaire

An applicant's financial information is among several factors used to determine the amount of insurance the company is able to issue to an applicant. This information is required by ALL insurance companies as they must justify the coverage amounts of all policies they issue.

Income multiples are one method of calculating coverage amounts, which is why annual income is required. Net worth helps insurance companies develop a picture of the family's overall financial position and potential loss in the event of the insured's death.

A common misconception among insurance consumers is they can purchase any amount of life insurance they desire, regardless of financial considerations. This simply is not the case. All insurance companies use financial information to determine allowable coverage amounts. This is done to control fraud and limit excessive insurance situations.