Posts tagged ‘insurance questions’

Term Life Insurance Frequently Asked Questions

Consumers have many options to choose from when purchasing a life insurance plan. Term life insurance is one choice that offers several benefits. It is simple to get quotes for term life insurance policies but it is also important to know the factors that can cause premiums to increase.

What is the Purpose of Term Life Insurance?

Term life insurance is a life insurance policy that is set for a predetermined amount of time. Additionally, term life insurance does not accumulate a cash value. As a result, term life insurance is less expensive than other life insurance options. Term life is also set for a specified death benefit amount and is simple in principle; if the insured person dies while the plan is in effect, the death benefit is paid to the beneficiary.

How to get Quotes for Term Life Insurance

Getting quotes for term life insurance is quick and easy as most insurance companies provide quotes online and by phone. In addition, there are search engines that compare quotes between insurance companies. With this in mind, working with an insurance broker can be helpful because they cannot only compare company rates, but also, they understand each company’s underwriting guidelines.

What Affects the Rates?

Many factors influence term life insurance rates. For starters, rates are based on location, as in where an individual resides. In addition, age, height and weight affect rates, as well if an applicant is a tobacco user. Interestingly, rates may even fluctuate if an applicant partakes in extreme sports or has a dangerous occupation. Furthermore, medical conditions affect the status and rates for premiums.

How to Apply for a Term Life Policy

Applying for a term life policy requires an application as well as additional paperwork to be submitted to the insurance company. Insurance brokers are helpful during the application process because they can assist with the necessary paperwork. Once the application is received, the insurance company will order a paramedical examination if required. In most cases, the paramedic can come right to the applicant to conduct the exam. After the results are received and recorded, underwriters make the decision about whether or not to approve a policy.

Term life insurance is a great option for many consumers offering lower premiums and flexibility in selecting the length of time and death benefit amount. Obtaining quotes for term life insurance is typically very easy and applying for a plan is rather uncomplicated. With this in mind, prepare mentally for the paperwork and be aware that there are factors that affect rates.