Q & A: Term Life Insurance

UPDATED: Mar 26, 2020

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Buying term life insurance online can be an exhausting experience. With so many websites making wild claims and endless promises, how do you know who you can trust? We don’t envy you; it’s a tough spot to be in. But we do sympathize. And so, we’ve put together some of the most common questions we’re asked about buying term life insurance and the best answers we’ve got for them. And if you want even more, check out our full Life Insurance FAQ page.

Hopefully, this will make your task of buying a policy a little less daunting.

Q: I don’t think I need life insurance coverage. Why should I buy a policy?

A: You may not realize it, but you likely have a need for some coverage, even if it is just a small policy. Life insurance can be used to pay for funeral costs, medical expenses, mortgages, loss of income for your family, a child’s education or daycare, business security, student loan repayment, and more.

Still not sure? Maybe this Life Insurance Planning tool can help you decide.

Q: What are the benefits of applying with a life insurance broker rather than finding a policy on my own?

A: A life insurance broker works with several life insurance companies and can do the shopping for you. A good broker is knowledgeable about all types of life insurance coverage and can find the best company and policy for your unique set of circumstances. This will ensure you get the best life insurance policy for your needs at the lowest premium possible.

Q: Does it cost me more to use a broker’s services?

A: No. Most life insurance companies require you to use a broker or an agent. The difference is a broker works for you and an agent typically works for a company (think Farmer’s, State Farm, etc.). Brokers and agents are paid by the life insurance company. The rates are set by the companies and regulated by the states. Therefore, you pay the same rate if you live in California or Michigan; and you pay the same rate if you use QuickQuote or another online broker.

Q: How much term life insurance coverage do I need?

A: Pulling a number from out of a hat or taking a wild guess is risky business. Your specific needs will determine the best amount of coverage for you. A good place to start is our Term Life Insurance Needs Calculator. We also have licensed Insurance Professionals who can you figure out how much you need.

Q: What payment options are available to me?

A:  You can choose to pay your term life insurance premiums monthly, quarterly, semi-annual or annually. And you can easily change this later if you decide another payment mode works better for you. Depending on the insurance company, you may be able to pay by bank draft, personal check, credit card or money order.

Q: Am I responsible for paying for my paramedical exam?

A: No. The life insurance company pays for your paramed exam. We will order the exam for you when we complete your application. The examiner will come to you to complete the exam and can schedule early morning, late evening and even weekend appointments.

Q: Am I guaranteed the term life insurance rate quoted to me?

A: No. All quotes are subject to underwriting review. That means we won’t know the final premium until your term life insurance application has been reviewed and approved by the insurance company. However, we will do our very best to give you the most accurate quote possible up front. Please let us know if you have any medical conditions, family history, moving violations or any other concerns which may affect your premium and we can shop rates for you before you apply

Q: I have some medical problems, and I don’t think I will qualify for coverage. Am I wasting my time applying for coverage?

A: Applying for life insurance is never a waste of time. We will do the shopping for you to find the best company with the lowest rate based on your medical history. We work with several life insurance companies and know which companies are more favorable depending on what your medical problems are. Most of the time we can give you an accurate quote immediately. Other times it may take 1-2 business days if we have to contact the insurance company.

Q: Can I get term life insurance without doing the medical exam?

A: Possibly. If you are between the ages of 18-55, you may be able to buy a no medical exam term life insurance policy. The policies we have available currently are 10, 15, or 20 years with coverage amounts ranging from $50,000 – $400,000.

Q: Am I able to have multiple term life insurance policies on myself?

A: Absolutely! There is no limit to the number of life insurance policies you can have. However, life insurance companies do look at the total amount of coverage you have. Life insurance companies have guidelines for how much life insurance you can have at one time. They also take into account other factors such as the need for coverage and overall financial situation. A financial need for life insurance must exist at the time you apply for a policy.

Q: Why is return of premium (ROP) life insurance more expensive than regular term insurance?

A: Return of premium (ROP) life insurance gives you a level death benefit and level policy premiums just as a term policy does, but it also give you all of your premium payments back. At the end of the level period you select, 100% of the premiums paid will be returned to you (minus any administration fees) as long as you have paid your premiums throughout the period of insurance and a claim is not filed.

Q: What is the maximum age I can qualify for coverage?

A: Many life insurance companies will issue a new 10-year term policy up to age 85.

Q: How long does it take to get approved for coverage?

A: Regular term life insurance takes approximately 3-4 weeks. No medical exam term life can be approved and in force with 1-2 days.

Q: What are some ways I can speed along the application process?

A: There are several ways you can help.

  • Schedule your application call at the same time you submit your online request.
  • Return your signed application to us promptly.
  • Complete your paramed exam as soon as possible.
  • Respond to any requests for information from your Case Manager.
  • Pay for your policy as soon as you receive it in the mail.

Term life insurance is the best and most affordable way to protect loved ones. Ask your agent for more information about term life insurance or learn more about our term life insurance process.

Tim Bain

Tim is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. He writes and creates stuff for QuickQuote and other insurance and financial websites. You can find him on Twitter.

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