Understanding Term Life Insurance Rates
These days, term policies have become very popular. The obvious reason for this popularity is the fact that a certain amount of term coverage will be considerably cheaper than the average price for the same amount of whole life insurance or universal life insurance. Some financial experts even believe that everybody should buy term, but other advisers counsel that the right type of life insurance depends upon an individual’s needs, budget, and goals.
At United Life Group, we are committed to helping our clients find the right type of life insurance at the best possible price. Our experienced agents can help you shop the market for affordable coverage from a top-rated insurers. You can begin online by simply entering your ZIP code to access no exam life insurance quotes. You should also feel free to contact us at any time to get questions answered about your own unique situation.
These are the three basic types of life insurance policies:
- Term life: These policies expire after the term is up, and they have no cash value.
- Whole life: This permanent type of protection provides lifetime coverage at a level premium, and it may grow a cash value. Some whole life policies can be purchased without a medical exam up to $50,000 in coverage. But will require an exam above that amount.
- Universal life: This is another kind of permanent life insurance that provides policy owners with coverage and a cash account. Additionally, the premiums and death benefit of a universal life policy are somewhat flexible over the lifetime of the policy.
Is Term Life Best for You?
Lots of people associate term policies with younger families who have large mortgages and growing families. It is true that mortgage life insurance is a very popular type of term life. It is mostly aimed at families who still have a large balance on their home loan and other outstanding obligations that they want to cover for their family in case the breadwinner passes away unexpectedly. However, you can even find term life insurance for seniors, and there are companies that offer this type of coverage to qualified individuals up to age 75.
Term life insurance rates for seniors may be more expensive than they would be for young adults, but they will still be less expensive than whole life insurance rates for seniors. In other words, if you look at a rates chart and compare rates by age, all types of life insurance get more expensive for older people. However, a 50-year-old might find very affordable 20 year term life insurance rates, and an elderly person might still be able to get relatively cheap 10 year term life insurance quotes.
Meanwhile, a younger adult with kids and outstanding debts might consider 15 year term life insurance rates or 30 year term rates. The length of the term might be chosen to ensure that coverage lasts as long as the mortgage does.
Pros and Cons of No Medical Exam Life Insurance
In order to accommodate busy consumers, many of the best life insurance companies offer term life insurance with no medical exam. These policies are extremely easy to apply for as they only require answers to some health questions, and you can even buy them online or over the phone.
Some insurers still pass these through manual underwriting, so they may take a couple of weeks to get back. However, other companies use a digital underwriting process, and they may issue your policy by the next day. Typically, term life with no exam offers a convenient solution with affordable rates for many people.
These are some common features of typical no medical exam term insurance:
- Death benefits: The maximum amount of term coverage that you can buy without a physical is usually around $250,000 to $350,000.
- Application process: Some insurers might ask for a doctor’s statement depending upon answers to health questions or information found from other sources. Depending upon the company and situation, the application process could take anywhere from a few hours to a few weeks.
- Qualification: Mostly, these are for adults younger than retirement age who do not have any serious health issues. Smokers are welcome to apply but should realize rates will be somewhat higher. Many diabetics can find life insurance, but they may need to choose fully underwritten policies instead of these no medical exam policies.
Does No Medical Exam Term Insurance Help People with Medical Conditions?
You should know that even companies that use digital underwriting will pull records from sources like the Medical Information Bureau (MIB), your local department of motor vehicles, or possibly even credit bureaus, so they are not operating in the dark. As part of the application process, you must give the company permission to access your records. You need to answer questions honestly, and sometimes these policies have fairly strict underwriting guidelines.
Who Benefits from Term Life with No Exam?
Ironically, both very healthy people and people with certain chronic health conditions might have better luck with term policies that do require a physical. Average people, who might be a bit overweight, have mild medical conditions, or less than ideal lifestyle habits might be the best candidate for policies that allow them to skip the exam.
Consider some of the reasons why fully underwritten policies might be better for some :
- Premiums: Since insurers offer insurance without requiring an examination, they tend to charge a bit more than their most preferred rates. Very healthy people with very good health habits might qualify for really cheap rates if they agree to take a life insurance exam.
- Personal underwriting: Insurers recognize that, for example, some diabetics manage their health condition very well, and they may offer coverage with standard rates in that case. With a fully underwritten policy, consumers have a chance to make their case to an underwriter instead of just relying upon strict guidelines.
- Face values: People who want a very large life insurance policy will probably need to take an exam.
Life insurance examinations are not usually very intrusive or even performed by a doctor. They are paid for by the insurer, typically scheduled by a paraprofessional at the client’s home or office, and they may only take a few minutes. In some cases, insurers want blood work, but they may only need a urine sample.
How to Find the Right Term Life Insurance
It is really easy to compare insurance quotes by using an online quote system. You can review term insurance quotes from your PC or even your smart phone. If you aren’t sure which type of policy is best for you, you should be able to get good advice from an agent or one of the best life insurance companies.
Who Considers Whole or Universal Life Insurance?
First consider some features and benefits of permanent policies:
- Permanent policies can provide lifetime coverage as long as the premiums are paid.
- Permanent life insurance can grow a cash value, and they might be borrowed against, cashed in, or sold while the insured person is still alive.
- Some whole life policies are specifically designed to accept older people who might be too old or ill to easily find other types of coverage.
In order to make the right choice, you really need to consider why you want to buy coverage in the first place. If you want to make sure that your spouse and kids can keep your house if you pass away unexpectedly, a term policy might be the right choice. However, if you want to use your coverage to pass on an estate or provide money to pay for final expenses like a funeral and burial, whole life might be a better choice.
Universal life tends to emphasize the cash value or savings aspect of insurance the most, and people tend to purchase this kind of coverage when they want to buy insurance and grow an asset that can be relied upon while they are still alive.
Buying Life Insurance is Easier Than Ever Today
Some people don’t apply for coverage because they assume the application process is long and complicated. If you have not shopped for coverage for several years, these are some things you will probably be happy to learn about shopping for a policy in the 21st century:
- These days, you can find plenty of no exam life insurance policies that do not require a medical exam.
- Some applications only ask a few health questions, and you can even find insurers that offer policies that do not require applicants to answer any health questions at all.
- Additionally, many companies offer phone or online applications, so you do not need to visit an agent or schedule an appointment for an agent to visit you in your home.
Find the Right Life Insurance for You and Your Family
Choosing the right type of life insurance might seem like a difficult decision, but our experienced and professional agents can help. We can help you understand the pros and cons of a variety of different types of coverage, and we can also help you apply for coverage if you need a few thousand dollars or a few million dollars of protection.
You should also know that some insurers offer better products and prices for different types of consumers. United Life Group is an independent brokerage, and this means that we can also help you shop the market to find good deals. Even a small difference in monthly premiums can add up if you plan to keep your policy for many years in the future.
Be sure to take advantage of our free Internet life insurance quotes, but we also want you to know that you are free to contact us by phone or email with your questions about different types of life insurance policies. We work hard to find the right coverage at the right price for each of our valued clients.