Term Life Insurance, Top Choice
When it comes to life insurance, there are two primary choices. The first is term life insurance. Term life insurance allows for larger death benefits at a more affordable price for a fixed period. Then there is permanent life insurance. Permanent types, like whole life, build cash value, and are much more expensive. However, whole life insurance remains in force for the insured’s entire lifetime. Whole life insurance works well with smaller death benefits. Both term and whole life will offer excellent levels of coverage for most people. And both types have their place in protecting the beneficiaries.
Term Life Insurance, Top Choice
The most popular type of life insurance purchased is without a doubt term life insurance. Many people choose term life insurance because they have determined they only need life insurance for a specific number of years. Term life insurance is also far less expensive than a whole life or universal life policy because you are paying for pure protection as opposed to a buildup of the cash value within the policy and last till age 100. Today term policies are available for 30 years from top-rated well-known companies. Some companies are offering a protection period of 35 to 40 years, with the premium locked in for the term.
For many people, a term policy will end at around the time that they retire, so there is probably no mortgage payment remaining. Their children would have finished college and grown. And, they won’t need to make provision for their family to have a large lump sum or income if they die prematurely. After determining how much insurance is necessary, a term policy will fit the financial situation very well.
A term life insurance policy can give coverage during the years when it is required. With the term period ending the protection when it is no longer needed. Also, you might consider should the strategy of laddering life insurance. Purchasing different life insurance amounts for different term periods can work well to cover various financial obligations. For example, a term policy to cover a mortgage for 20 years. Another for college expenses that might be for only 15 years etc.
Whole Life Insurance is about five times the cost of a term policy!
Average Cost of Term Insurance
The term life insurance quotes below are the average cost for a 20-year term life insurance policy with a death benefit of $500.000.
Term Life Insurance Has Accelerated Underwriting
Many companies are adopting a streamlined process of approving applications for life insurance known as “accelerated underwriting.” This new process may be the future of life insurance underwriting as it continues to evolve and improve. Accelerated underwriting life insurance can reduce the issue of a life insurance policy from 4-8 weeks down to a couple of weeks and, in some cases, a couple of days. Insurance company underwriters use data that is currently available instead of ordering medical records and medical exams. During the telephone interview, a decision to approve the policy is made. Depending on age, benefits amounts can be purchased for up to $1,000,000.00!
Term Life Insurance and No Medical Exam!
Term non-medical life insurance policies make up a significant total of life insurance policies sold today. For some companies, these policies make up most, if not all, their business. Depending on your age, policies can be obtained up to $1,000,000 without a medical exam if you are in good health, at the same price as a fully underwritten policy with a medical exam. Some of these companies use the accelerated underwriting process; others do not request a medical exam.
Types of Term life insurance
- Annual renewable term is purchased in one-year increments and renews annually.
- Group Term plans offered by employers.
- Living benefit term can help fund tomorrow’s care with benefits for future chronic, critical, and terminal illnesses. They are often offered in smaller death benefit amounts.
- Mortgage Term is designed with exclusive benefits, especially for mortgages.
- Term insurance offers many benefit riders to choose from, making the policy more attractive than just a death benefit. The most popular benefits parents add are the accidental death, the waiver of premium, and the disability benefit rider. Adding additional benefit riders increases the cost of the policy.
- Term life insurance is purchased in term periods of 5, 10, 15, 20,25, 30, 35, and 40 years.
- Term life insurance can be paid monthly, quarterly, semi-annually, or annually.
- Term life insurance has a “grace” period typically of 30 days if you miss paying a premium, give you time to catch up, and not lose your protection.
- Term life insurance has a death benefit that can be reduced as your debt is paid down without affecting the term period but reducing the premium.
- Term life insurance can be converted to a smaller death benefit and last a lifetime.
- Term life insurance can be issued with a medical exam and depending on the company and the amount of death benefit without a medical exam.
- Level term life insurance policies have a death benefit that remains the same for the term of the policy.
- Decreasing term life insurance policies have a death benefit that decreases each year the policy is in force down to a certain point.
- Term life insurance is ideal for laddering.
Term Life Insurance Can be Converted to a whole life policy!
At the end and during the term period at specific times, you can “convert” your coverage or keep or lower your current death benefit and continue your death benefit protection. With the conversion option, you have a choice depending on the insurance company to a move to a permanent plan of insurance like a universal life policy or a whole life policy. Health issues are usually not considered by the insurance company, so there is no physical exam required.
Again, the conversion privilege varies with each insurance company and can are exercised at specified times listed in the policy contract. It is essential to check out the conversion privileges the company offers before deciding on a company. One company currently has a term policy that changes to a decreasing term policy at the end of the original term. It maintains the initial premium and extends the time protected as a great option. It continues at the original price until the death benefit reaches $10,000.
No Need for Face-To-Face Meetings
Changes in technology have brought about many changes in the life insurance industry. One difference is the elimination of face-to-face meetings with an insurance agent. This meeting is no longer necessary. Although some companies still require that the agent and client meet face-to-face. However, many insurance companies have eliminated the requirement.
Today companies have incorporated e-signature via the internet as well as using voice signature through the use of the phone, a more advanced and faster approach. You can even run a needs analysis, health analyzer, receive quotes, select a product and a carrier, and complete a-pre-application on your own!
Use an Independent Agency Rather Than a Captive Agent
A captive agent must offer you products from the company that has contracted them to solicit insurance. A captive agent limits your choices of finding the best company at the best price, with the quickest turn around time. Also, be aware of many of the larger agencies that continuously advertise on the radio, which in reality only represents a handful of companies.
The key to finding the best life insurance quotes is to use an agency that represents multiple carriers. Strahan Financial Services works with the top best life insurance companies. Many of these companies use the accelerated underwriting process. Let us put our expertise to work for you.
Why Use Strahan Financial Services
We work with a team of highly talented individuals committed to providing you with unmatched professional service with over 250 years of combined experience.
- We are professional
- We are knowledgeable
- We use the latest advanced technology
- We are customer-service driven
- We will earn your business
- We want to deliver beyond your expectations
- We want a genuine “Thank you!” at the end of the process.