If you’re like most of our clients, you have life insurance questions that need answers. Everything from your job to your age to your family’s health history plays a role in the rate a provider will offer you. So what are the best kept secrets to getting the lowest possible rates? What are the term life insurance do’s and don’ts to make sure you get coverage that meets your needs? We’re here to help by sharing what we know so you can make an educated decision.
Whether you’re just curious or need to know because the topics below pertain to you, here are some of our best kept secrets about term life insurance:
How Do I Get Covered?
The first step? Fill out the form on the top of this page. Tell us how much term life insurance you’re looking for and we’ll give you quotes from the country’s top carriers. If the payments quoted don’t work for you, we can change the coverage amount or the expected premium to find a solution.
Once you pick a policy, the next step is to complete the application. We can do this with you over the phone, or we can send the application by email. While we have you on the phone, we can also schedule the medical exam, if your policy requires one. In the world of term life insurance do’s and don’ts, looking for no-exam policies is a big “do”!
Once the exam (if required) is completed, your results and application get sent to the insurer for underwriting. Keep in mind that it is possible for an insurer to decline your application. Here’s another of our best kept secrets: if this happens, we’ll find out why, and if possible, push back for a second look. We can also submit your application to a different insurer if we think there’s a greater chance of approval somewhere else.
If you’re approved, state consumer laws require a “free-look” period. If, during the free-look period, you change your mind, you can return your policy for a full refund. Through it all, we’re just a call or an email away if you have life insurance questions or concerns. At LifeQuote, we make insurance buying simple and hassle-free!
Is the Death Benefit Tax Free?
In almost all cases, yes! This is one of the best kept secrets about your policy’s death benefit. There are no taxes and no restrictions on what your loved ones can do with it.
The only time a death benefit will be taxed is if it’s a permanent policy classified as a MEC – a modified endowment contract. This only happens when people pay more into their policies in the first seven years than is required to be paid up. This is rare and is usually a tax strategy applied by those who’ve already maxed out other retirement savings options like 401(k)s and IRAs.
How Can I Save Money on My Policy?
Good question! All policies usually involve a trade-off: the more coverage you want, the more it costs. But sometimes, other factors come into play, like a health condition or the policy type you want. Here are a few of our best kept secrets for saving money on your policy:
- Quit smoking. One of the disadvantages of term life insurance is the high rate smokers must pay. If you’ve been meaning to quit, do it before you apply. You’ll need to have been tobacco-free for at least 1 year to qualify for better rates. But once you do, you’ll be healthier – and paying less for term life insurance.
- Get a problematic health condition under control with your doctor’s help. Another of the disadvantages of term life insurance is the rate you’ll pay with chronic health conditions like diabetes. Insurers want to know that you’re doing everything you can to manage your condition. If you’re diabetic, they’ll look closely at your A1C levels. In general, you want your rating to be 7% or below to get a Standard rate. You’ll pay more if your rating is between 7% and 8%. If your rating is 8% or above, you may need to wait and reapply when you’re able to lower your A1C.
- Look into a different policy type. If you’re applying for a whole life or universal life policy, your rates will be higher than someone applying for a term policy. If budget is your #1 priority, switching policy types can help lower your monthly payment. Later, if your budget expands, you can convert your term policy into a permanent one. When it comes to term life insurance do’s and don’ts, adjusting term lengths is a “do” if you need a lower rate.
Term Life Insurance Do’s and Don’ts
Sometimes the life insurance questions we get aren’t big-picture questions, like the ones addressed above. Sometimes they’re about what you should and shouldn’t do as you’re applying for a policy.
Can I Use My Doctor for the Medical Exam?
Not in most cases. An insurance exam has to be impartial and provide objective information relative to risk assessment. Your personal doctor is a patient advocate. A client can ask a personal doctor not to disclose certain information (doctor-patient privilege), which may be a conflict of interest for the doctor to act as both an agent for the company and the potential insured. This is another one of the few disadvantages of term life insurance.
Can I Use My Last Doctor’s Exam?
In most cases, no. The insurance exam looks for specific longevity risks based on your overall medical condition. Doctors aren’t usually assessing the exact same things an insurance company needs to know about you. This is one of the few disadvantages of term life insurance.
What Should I Do Before the Medical Exam?
It’s more of a question of what you shouldn’t do. Avoid stress, alcohol, tobacco, and caffeine, as these can all have an effect on your blood pressure. Also avoid fatty and salty foods for the same reason. Try to get a good night’s sleep beforehand and drink plenty of water the day before your exam.
Questions about LifeQuote
We’re all about being transparent and honest with our clients – no best kept secrets here. Here’s a little more information about who we are and what we do!
Are You a Life Insurance Company?
No. We’re an independent company providing you with information and free price comparisons from selected companies. When it comes to term life insurance do’s and don’ts, the best thing we can “do” is give you the information you need to make an informed choice for your loved ones. We can’t make the choice for you, but we can provide unbiased information and rates since we don’t work for and are not a part of any insurance company.
Do You Sell All the Products You Quote?
We select from the most competitive products available based on our internal criteria. On rare occasions, we may quote a product we don’t normally offer in the interest of the consumer. If so, we’ll advise you of that fact.
Can You Help Me Choose a Policy?
We prefer to offer information that helps you make the choice. It’s your money, your family, and your decision. Plus, no single insurance provider has the right solution for every age, amount, or situation – no best kept secrets about that! That’s why we provide a selection of products from different companies with the most competitive rates currently available. Keep in mind those rates may change when the insurance company actually evaluates your insurance application.