Understanding Term Life Insurance
Ever since the early part of the 1980’s, term life insurance has become much more attractive than permanent life insurance, whole or universal life. Even though term insurance does not provide lifetime coverage or a cash value, it is a lot cheaper than whole or universal life. The prevailing logic has been to buy term and invest the difference in premium in other assets. Also, because term rates are more affordable, people can afford to purchase a larger amount of coverage.
We can help you find affordable term life insurance companies in your city. To get online life insurance quotes right from your PC or smart phone, just request a quote. We do not need any personal information for this. After you see your instant quotes, you can begin the application process online. If you like, you are also welcome to call or email for more information.
Term Life Insurance Rates
LIMRA is a major term life insurance marketing and research firm in the US. According to this organization’s recent surveys, a large percentage of households don’t believe they have enough life insurance, and about a third of all households have no coverage at all. Of those people who lacked sufficient coverage, survey answers suggest that many of them think that coverage costs more than it actually does. If concerns about the price have been holding you back, some sample monthly premiums might be informative.
These sample term life insurance quotes are for preferred 20 year term with a $250,000 face value for a 45-year-old California man who does not smoke:
- No exam: $77.88
- Exam required: $34.91
These sample term life insurance quotes are for a preferred 20 year term policy with a $250,000 face value for a 45-year-old California woman who does not smoke:
- No exam: $56.44
- Exam required: $27.34
Note: These are only example prices, and your own quote could be different because of medical underwriting, lifestyle, location, and insurance company.
These monthly term life insurance rates are for people in excellent health. Of course, people who are younger and in better health will pay less than older or less healthy people. Insurers may determine health by simply asking health questions, but underwriters know that they take less risk when they require a physical exam to back up the answers to those questions. That’s why prices are much lower when an exam is required.
These term life insurance exams are usually pretty quick, can be performed at the applicant’s convenience, and are paid for by the insurer. In some cases, a doctor performs the exam. In other cases, the insurer will send a paramedic right to the applicant’s home or office to take simple measurements, and possibly, a urine or blood sample.
A term life insurance physical is really nothing to worry about, but fully underwritten policies will take longer to get issued. Policies that require full medical underwriting may take a few weeks to get issued. Some no medical exam policies can get issued over the Internet the same or the next day.
The Basics of Term Life Insurance
Most people buy a 10-, 20-, or 30-year term life insurance policies, but other terms are available. After the contract ends, there is no cash value left in the policy. The contract is just pure insurance coverage for a certain length of time.
This is different than whole or universal that can provide lifetime coverage and grow a cash value. Some people may need a cheaper term policy with a larger face value now, but they can see a need for permanent insurance in the future. It is possible to purchase term policies that are convertible to permanent insurance at any time before the term expires. This may be a good way to buy cheaper term but leave options open in the future.
Applying for Term Life Insurance Policies
To apply for no medical exam insurance, you will need to answer some questions on an application. Insurance companies will verify your answers against a variety of third-party sources, so you need to answer to the best of your ability. These sources might include your state’s department of public safety, credit bureaus, the Medical Information Bureau, and in some cases, your doctor.
Term Life Insurance Exams
Fully underwritten policies, which may be cheaper for some applicants, also require a physical. Typically, older folks and those who want to buy a very large death benefit will also need a physical. No physical term policies may top out at about $350,000. As you saw in our price example, very healthy people may enjoy cheaper price quotes if they submit to a physical.
Actually, applicants with certain medical conditions may also get offered a better price if they can prove good control through a physical. The exam usually makes the least difference for people in average health. In fact, people with certain chronic health problems might find that they have very limited options for term life insurance if they do not want to submit to an exam.
Level Term Life Insurance With Guaranteed Premiums
It is very important to realize that not all term policies are level term with guaranteed premiums. If you want to be sure that you are paying the same price for the same coverage in a decade that you are today, make sure you find out if you would receive a rate increase and have level benefits. Also, be sure there is no waiting period after the policy gets issued before the full face value is payable.
Who Buys Term Life Insurance?
Common reasons that people state for buying coverage include buying or refinancing a house, expecting a new baby, and getting married.
- Some people buy mortgage life insurance to cover their home. For example, these families may buy a 30 year term to match the length of a 30 year mortgage.
- Many insurers also market term to seniors, but older people may consider a 10 year term policy for the lowest premiums.
Compare the Best Term Life Insurance Companies
The price of your policy depends on many different factors. These include the term length, age, city, and tobacco use. People who in very good health will pay less than people who suffer from pre-existing health conditions, and some people may get declined because of an illness.
In any case, you should always compare a handful of different local companies to make sure you find the most competitive premiums. It is impossible to know which company will offer you a good deal without asking a few questions, but these are some of the largest term life insurance companies in the USA that we represent:
- Banner Life Insurance Company
- AIG Life Insurance Company
- Assurity Life Insurance Company
- ING Life Insurance Company
- Transamerica Life Insurance Company
We make it easy to see prices from quality term life insurance companies in your local area. To view your instant quotes, just fill out the simple form on this page.
If you prefer, you are also free to contact us for help. Our online tools, selection of quality insurers, and personal service help us find our clients the right insurance at a fair price.