Welcome to the QuickQuote Term Life Insurance Resource Center! Here you will find a variety of articles, guides, calculators and other tools to assist you with your purchase of term life insurance.
What is term life insurance?
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.
The two main types of term life insurance policies are level premium term life insurance and yearly renewable term life insurance.
Will my premium rates change each year?
No, your premium rates are guaranteed to remain the same during the entire term period. These are called fully guaranteed or level term policies and they are the only type of term life insurance policies QuickQuote offers.
The Underwriting Process
The application process is generally referred to as underwriting. For the most part, these two terms are used interchangeably. In its broadest sense, underwriting involves the collection and analysis of applicant information and ultimately results in an underwriting decision and offer made by the insurance company.
QuickQuote is unique in the Internet brokerage world in that we stay actively involved throughout the underwriting process. Our Case Management and Customer Service teams work with you and the insurance company to obtain outstanding requirements, facilitate exams, clarify answers, answer questions and much more. We keep you posted on the progress of your application and any important developments.
Once an underwriting decision is made, we will contact you with the terms of the offer and work with you to place your policy in force.
More than 2 million individual life insurance policies sold in 2008 were purchased through the Internet, direct mail or telephone. These 'direct' sales accounted for more than 20 percent of all life insurance policies sold that year, according to research by the Life Insurance Marketing and Research Association (LIMRA) and the Life Insurance Direct Marketing Association (LIDMA), of which QuickQuote is a member.
The research findings also show consumers chose direct channels such as the Internet due to selection, price and convenience. Respondents cited a good website as a top factor in their decision to purchase life insurance online.
"It's exciting to hear more consumers are turning to direct channels such as the Internet to purchase term life insurance," stated Tim Bain, President of QuickQuote. "We've known for many years direct channels, and the Internet in particular, would become the method of choice for consumers looking to purchase term life insurance. Now we are starting to see that vision come to fruition."
Automation of key elements in the term life insurance purchasing process has helped improve cycle time and convenience. Just a few short years ago, applying for a policy was done entirely on paper, which required mailing applications, physical signatures, etc. Today, we make better use of technology in the following ways:
- Online Application Forms - forms can be completed online or by telephone.
- Electronic Signatures - forms can be signed electronically, with no need for printing, mailing, etc.
- Electronic Submission - forms can be submitted to the insurance company electronically.
- Status Updates - underwriting progress can be checked online and in real-time.
- Electronic Policy Delivery - the newest automation to the process will be available from QuickQuote this summer!
While purchasing term life insurance online may not be as simple as downloading a new app or e-book, it's certainly much better than the 'old school' way. And if your life insurance need is $500k or less, Non-Medical Term Life Insurance can be purchased in as little as 15 minutes, entirely online! You won't find an app for that in the App Store.
Sources: LIMRA, LIDMA