Q. What is "term" life insurance?
A. There are two basic types of life insurance: term insurance and
permanent (cash value) insurance. Term insurance generally has lower
premiums in the early years, but does not build up cash values you
can use in the future.
Term insurance covers you for a term of one or more years. Premiums
will not increase during the guaranteed premium term you select.
Term Insurance pays a death benefit only if you die during that
term. Term insurance generally provides the largest insurance protection
for your premium dollar.
You can renew most term insurance policies for one or more terms
even if your health has changed. Each time you renew the policy
for a new term, premiums may be higher. The policy remains in force
for as long as premiums are current, provided there are no misrepresentations
on the application or other defenses to coverage. Coverage terminates
if you discontinue premium payments.
Q. What is "universal" life insurance?
A. Universal life insurance provides permanent life insurance coverage
and any cash value accumulates on a tax-deferred basis. The death
benefit and cash value depend on the interest rate declared by the
insurance company. Universal Life policies provide insurance to
protect what you have today and to help you provide for what you
want tomorrow.
Q. What is "whole" life insurance?
A. Whole life insurance gives death protection for as long as
you live. The most common type is called "straight life"
or "ordinary life" insurance, for which you pay the same
premiums for as long as you live. These premiums can be several
times higher than you would pay initially for the same amount of
term insurance. But they are smaller than the premiums you would
eventually pay if you were to keep renewing a term policy until
your later years.
Some whole life policies let you pay premiums for a shorter period
such as 20 years, or until age 65. Premiums for these policies are
higher than for ordinary life insurance since the premium payments
are squeezed into a shorter period.
Although you pay higher premiums to begin with, for whole life
insurance than for term insurance, whole life insurance policies
develop "cash values" which you may have if you stop paying
premiums. You can generally either take the cash, or use to buy
some continuing insurance protection. Technically speaking, these
values are called "nonforfeiture benefits." This refers
to benefits you do not lose (or "forfeit’) when you stop
paying premiums. The amount of these benefits depends on the kind
of policy you have, its size, and how long you have owned it.
A policy with cash values may also be used as collateral for a
loan. If you borrow from the life insurance company, the rate of
interest is shown in your policy. Any money which you owe on a policy
loan would be deducted from the benefits if you were to die, or
from the cash value if you were to stop paying premiums.
Q. What if I change my mind after an application is submitted?
A. All policies have a "free look" period. This period
may vary by state. During the "free look" period, you
may cancel your policy without obligation. See the policy for details.
Q. What happens when I request an online quote through this
site?
A. As you go through the site, you will be asked to provide information
to obtain an instant Term Life Insurance Quote, as well as provide
us with enough information to determine the best carrier for you
to apply for life insurance. It is important that you double check
the information you entered into the Quote Request and add or correct
any information.
An application from the carrier we recommend based upon the information
you provided will be mailed or faxed to you. This application will
need to be completed, signed and returned to us. The sooner you
complete this, the sooner the application process can begin.
Once completed and signed application is received, a telephone
interview will be scheduled. The questions asked during the interview
will begin the carriers underwriting process. At the end of the
interview an appointment will be scheduled at your convenience for
an authorized paramedical professional to visit you to take a blood
and urine sample, and to gather any other necessary medical information,
including your signature on the application and any required forms.
This paramedical visit usually takes less than 25 minutes.
Your application will be underwritten by one of our quality carriers.
Upon underwriting approval, we will mail you your policy. The underwriting
process could be completed in as little as 3 weeks, depending upon
your circumstances.
Included with your policy will be a bill for the initial premium.
Payment of the premium, as well as any other required documents,
upon policy delivery while the proposed insured is living and the
representations in the application are still accurate, activates
your coverage. Payment can be made by personal check or by credit
card - VISA or MasterCard.
Q. What should I do about insurance I have now?
A. If you currently are covered by another life insurance policy,
DO NOT modify or cancel it until your new policy has been issued
and the premium received by the insurer. You will be notified when
that happens and your new coverage is in effect.
