Term Life Insurance Articles
Three Signs That A Term Life Insurance Company May Be Suspect
2010-12-11
Life insurance is a fundamental part of sound financial planning. When comparing life insurance quotes for your term life policy it is especially important to know how to spot a suspect company. Buying term life insurance can be complicated. Many shoppers do not know what questions to ask and can become easy prey for an unprincipled salesman. If you want to be aware that you are getting misleading insurance quotes from a suspect company, here are three telltale signs to look for.
There are several features of term life insurance that make it very attractive. One is that it is the most affordable way to by protection for your family but another is often overlooked; it is convertible. That means that the policy holder has the option to change or convert his policy to a form of permanent life insurance such as whole life or universal without the necessity to prove insurability. No physical is required. Some policies require that the conversion option be exercised within five years of initiation of the policy while others simply require that it be applied before expiration of the existing term life policy. This is a valuable and very useful option. If the life insurance quotes you get from a company do not offer the conversion option, you should stay away.
A company that does not offer a guaranteed renewal feature it is a suspect company. If you buy a ten or twenty year term policy and die before the term expires, your policy will do what you bought it for. But what if you outlive the policy and acquire a serious illness during that time. You will be unable to get a new policy. Your family will be uninsured. A guaranteed renewable policy will allow you to renew your policy for an additional term regardless of any health issues that may have developed since your first policy went into effect. Life insurance quotes for the new policy will reflect you state of health but you cannot be denied coverage on that basis. Find a policy that will let you renew for another 10 year term or longer at a guaranteed rate. If the only option is a series of one year renewals, the premium will increase dramatically with each renewal.
The third sure sign of a suspect company is that their life insurance quotes do not guarantee stable premium for the duration of the policy term. This can be misleading. The agent may show you a chart indicating level premiums but if that is not written into the contract you can be sure that your rates will increase and probably every year.
Keep these three things in mind and ready everything carefully.
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Life insurance is a fundamental part of sound financial planning. When comparing life insurance quotes for your term life policy it is especially important to know how to spot a suspect company. Buying term life insurance can be complicated. Many shoppers do not know what questions to ask and can become easy prey for an unprincipled salesman. If you want to be aware that you are getting misleading insurance quotes from a suspect company, here are three telltale signs to look for.
There are several features of term life insurance that make it very attractive. One is that it is the most affordable way to by protection for your family but another is often overlooked; it is convertible. That means that the policy holder has the option to change or convert his policy to a form of permanent life insurance such as whole life or universal without the necessity to prove insurability. No physical is required. Some policies require that the conversion option be exercised within five years of initiation of the policy while others simply require that it be applied before expiration of the existing term life policy. This is a valuable and very useful option. If the life insurance quotes you get from a company do not offer the conversion option, you should stay away.
A company that does not offer a guaranteed renewal feature it is a suspect company. If you buy a ten or twenty year term policy and die before the term expires, your policy will do what you bought it for. But what if you outlive the policy and acquire a serious illness during that time. You will be unable to get a new policy. Your family will be uninsured. A guaranteed renewable policy will allow you to renew your policy for an additional term regardless of any health issues that may have developed since your first policy went into effect. Life insurance quotes for the new policy will reflect you state of health but you cannot be denied coverage on that basis. Find a policy that will let you renew for another 10 year term or longer at a guaranteed rate. If the only option is a series of one year renewals, the premium will increase dramatically with each renewal.
The third sure sign of a suspect company is that their life insurance quotes do not guarantee stable premium for the duration of the policy term. This can be misleading. The agent may show you a chart indicating level premiums but if that is not written into the contract you can be sure that your rates will increase and probably every year.
Keep these three things in mind and ready everything carefully.
