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Term Life Insurance

Instant Term Life Insurance Quotes

Term life insurance is a popular life insurance option for many families on a budget. The benefits of online quoting for term life insurance are cheap or “inexpensive” premiums compared to other types of life insurance products.  This makes it an affordable alternative to permanent life insurance products. The interesting thing is that should your needs change, you may generally convert your term insurance to a permanent life product (such as whole life, universal life, indexed life) without a physical exam.

Term Life Insurance Types

The conversion privilege is one of the greatest if not the most important benefits of term life insurance. “One of the greatest benefits because without it, the policy may expire without doing what it was meant to do, which is to provide a valuable death benefit at a specific but unknown time, when the insured dies.

The conversion option is generally available throughout the term insurance level premium period of (10, 15, 20, or 30 years) or through age 75. Level term period means the premium is guaranteed not to change, (not increase) for the term period selected.

The term life conversion feature offers you two very important benefits. But be careful. If not set up properly, a life insurance mistake can become expensive and aggravating. 

 

Converting your term life insurance without a medical exam

The first benefit of term conversion is that you can upgrade your term life policy to permanent life insurance without a medical exam. In other words, you are given the benefit to go with a guaranteed death benefit policy that will ensure cash proceeds are paid to your beneficiaries as long as the policy is kept active until the insured dies. 

 

Get the best life insurance rate even if your health has gone from good to really bad

What if your health has gotten really bad or worse, you are not insurable when it’s time for you to upgrade your term life insurance policy? That’s the one of the greatest benefits of your term life insurance conversion option. It allows you to get a new permanent life insurance policy (like a guaranteed death benefit universal, whole life or indexed universal life policy) using the original health classification that you received when you first got your term insurance policy.

This means that if you originally received a preferred best classification (the best rate class your life company offers), you also get the same rate classification when you upgrade your term policy through the conversion process. The new policy gets the best life insurance rate even though 10, 20 or 30 years have passed, up through age 75 and your health has changed for the worse. Some companies may even extend the term life conversion option passed age 75.

It is therefore very important that you check the term life insurance policy provisions and weigh them against the premiums for the policies you are thinking of buying. Not doing so can become very costly at the worst possible time, when the insurance is needed the most.

 

A common life insurance mistake is that you forget to look past the premium

If you are like most people, your health will likely change and may even get worse as you get older.

Say for example that you bought the lowest cost 20 year term policy that you can get quoted at age 41. Now you are about to turn age 61 and because your health has change dramatically due to a (heart attack, cancer, stroke, etc.) you decide to upgrade (or convert) your term life insurance to a permanent guaranteed type of life insurance policy. You now have a life expectancy of less than 3 years and you want to make sure your family receives the policy’s $500,000 death benefit when you die. Problem is that your term insurance is about to expire!

So you search for and find your old term life insurance policy from 20 years ago and call a new life insurance advisor since you have lost touch with your original agent from 20 years ago. You want to get out of your old term life policy and get insured with a desperately needed permanent life insurance policy. You want to use the policy’s conversion feature to upgrade to a guaranteed death benefit universal life insurance policy.

The problems you encounter are several of the ten most common life insurance mistakes. These are mistakes that have occurred over and over, in fact countless times.

 

Do not pass up on a policy review

You meet up with your insurance advisor to review your life insurance policy. The medications you are taking are making you feel sick. Your illness has also caused a family member to quit their job and help you out with your personal things around the house. Bathing is impossible without help and getting dressed by yourself is nearly impossible. You need someone standing nearby to make sure you do not get hurt while walking around. And things are about to get really uncomfortable.

During the life insurance policy review meeting, your insurance advisor informs you that your conversion privilege expired about a year ago at age 60. Your insurance advisor goes on to explain that the term policy allowed for an upgrade to a permanent life policy offered by the company throughout the 20 year term period, but only through age 60 and you are now just beyond that age. (Even though you have the 20 year option to convert your term life policy to a permanent life policy, the conversion must take place before age 60. A similar tem policy with the same or similar premium outlay that had conversion privileges through the same 20 year period but offered it through age 70 would have been a better choice).

You are confused because you remembered that your neighbor bought a similar term policy and was able to upgrade to a permanent life insurance policy with lifetime coverage and he was 74 years old. Why can’t I do the same?

So to confirm, with the help of your agent, you placed a call to your life insurance company and they confirm over the phone and in writing that your right to convert your old term policy to a new permanent type of policy had expired at age 60. You may be able to renew the term policy based on the schedule of future annually renewable premiums, but that is likely too expensive.

The mistake here is that you failed to check your life insurance policy at least every three years. Forgoing a once every three years policy review made it likely that you may not have had the best possible policy to meet your changing needs.

 

Working with a knowledgeable agent is important!

This particular life insurance buyer made the mistake of getting instant term life insurance quotes without the assistance of a knowledgeable agent.  Buying life insurance as though it were a commodity is a common mistake that must be avoided. You must review the slight differences in policy provisions against the premiums from your term life quotes.

Continuing from our example above, 20 years ago you bought a term life insurance policy with the cheapest or most inexpensive premium. The other available term policy premiums were a few dollars more per month. Meanwhile your neighbor had discussed his term insurance quotes with a knowledgeable life insurance agent, and discovered that similar policies, even from the same company are not always equal. For instance, the proper set up a life insurance policy is yet another aspect that you most consider. 

Your neighbor opted for a policy with a conversion period up through age 75. He understood the benefits of term life insurance are also found in the various policy provisions.

 

Comparing instant term life insurance quotes

You must understand that term life products must be checked to see if the polices provide identical benefits. In most cases, products from instant life insurance quotes will not be identical. You will want to carefully consider the life insurance policy provisions and compare the premiums form your online quotes. This is because, for example, a policy with the lowest initial premiums may have higher renewal premiums than other policies.

 

Benefits Of Term Life Insurance

To make matters worse, you discovered that upon converting his old $500,000 term policy, your neighbor now had living benefits for heart attack, cancer, stroke, etc. Your neighbor is in a much better financial situation because he has access to some or all of his $500,000 benefit should he be stricken with your illness and situation.  

The living benefits provided by this type of life insurance policy can be used to give you early access to the death benefit, allowing you to use and plan for your benefits while you are still alive. You can reduce or pay off debts including the mortgage on your home, ensuring that the family house remains a home for your family. You can make sure college is taking care of for your kids or grandkids. You can pay for medical expenses that are not covered by insurance. These term life insurance types allow you to keep family savings and investments safe from depletion and your family’s (spouse, etc.) retirement from being decimated. This could have been your policy!

 

Check for the waiver of premium

An important factor to consider when comparing term insurance quotes is the inclusion of the waiver of premium rider without evidence of insurability. Check whether the conversion clause permits you to upgrade to a permanent life insurance policy (whole life, universal life, indexed life, etc.) with a waiver of premium rider. If it does, check whether there are any limitations due to preexisting conditions.

The benefits of your term life insurance policy provisions can be really important features? This life insurance benefit pays the policy premium if you are disabled. You must examine the conversion clause further to determine if it permits the waiver of premium rider on your converted policy even if you are already disabled. You also need to check to see if there is a minimum age for the waiver of premium rider if the insured is already disabled. 

 

Comparing term policies

A good life insurance agent should be able to help identify the following life insurance policy provisions. These factors need to be considered before you buy life insurance based on an instant online life insurance quote(s).

Ask about the age to which a convertible term policy may be converted to a permanent product without evidence of insurability. An additional premium amount for a policy that guarantees the conversion right for extra years may be a worth it.

Ask whether the conversion clause permits you to convert to a permanent policy (such as whole life, universal life, indexed life) with the waiver of premium rider without evidence of insurability. 

If the conversion policy does allow the right to include the waiver of premium rider, ask if this feature allows the election of the rider even if the insured is already disabled.

In those conversion policies that have the waiver of premium rider, ask about the minimum age limits for conversion (such as age 55). 

Ask whether the waiver of premium rider in the conversion policy have any limitations due to preexisting conditions.

For renewable term policies, ask about the schedule of future renewal premiums.

Ask whether the term life policy automatically expires after the expiration of the term period? For example, if you have a 20 year term policy, will you have a grace period at the end of the term? In the absences of a grace period (ex. 31 days), the policy may leave you uninsured if you are late with the renewal period.

Check to see if the incontestable and suicide clause will be modified in the conversion policy. See whether it will run from the date of the original issue date of term policy.

In generally, it is worth paying a little more to get a policy that will be more beneficial to you.    

 

Don’t make the mistake of buy life insurance by simply comparing prices

Life insurance may be one of the most important purchases you will ever make. As with any important purchase it pays dividends to avoid landmines. You can avoid these common mistakes if you follow a simple check list (request it below!)

The knowledge of your agent and the strength and integrity of the insurance company and their commitment to service can make a major difference as to how “inexpensive” or “costly” your insurance will be.

 

Submit the form below to: 

  • Request a knowledgeable agent, for
  • Term insurance quotes – Permanent insurance quotes
  • Get information on life insurance types
  • Discuss your insurance needs

 

 

 

 

 

 

 

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COMMON NEEDS FOR LIFE INSURANCE

  • Make sure cash is available
  • Provide income
  • Pay debts
  • Create a large cash fund
  • Pay taxes
  • Run a business
  • Replace valuable employees
  • Hire and retain employees
  • Gifts to children or grandchildren
  • Gifts to charity
  • Gifts to persons of great importance in your life
  • Preserve the confidentiality of financial assurances to significant others