Term Life Insurance - Protecting Your Family

We all know that we need term life insurance to protect our families in the event that something were to happen to us.  Life insurance makes certain that even though we are gone our family does not have to suffer as a result of losing that source of income.  Term life insurance is the simplest, most cost effective, and best form of life insurance for the vast majority of people.
If you’re looking to get life insurance protection, in most cases a term insurance plan is going to be the best option. There are several reasons that applicants tend to buy a term insurance plan versus some of the other options. We are going to explore some of those options in this article. (more…)

4 Critical Tips When Life Insurance Comparison Shopping

This is a guest post by Jeff Rose from lifeinsurancebyjeff.com.  Jeff is a certified financial planner and an Iraq combat veteran.
It can be frustrating and confusing going from website to website searching for the best life insurance rate. The truth is that life insurance rates are the same no matter what agent or agency you use. We all use the same published rates.

The key in securing the best life insurance rate is using an agent with the experience and ability to find you the best life insurance companies that will look most favorably at YOUR individual health and lifestyle.

Each company has different underwriting guidelines. For example, you may qualify for standard rates with Company "ABC", but with Company "XYZ" they may offer you preferred rates. There's no way for a consumer to know this by just using an instant life insurance quote engine, especially if there are any health issues involved. (more…)

How Does Life Insurance Work

For anyone just getting started out on their own and trying to come up with a good financial plan the question always comes up, “How does life insurance work?”
This article will help you break down this question so when you are having the conversation with others you can be the genius that explains the how does life insurance work question.
Life insurance is one of the most important investments that you’ll ever make for your loved ones. It’s important that you make the best decision for your life insurance needs to ensure that your family has the money that they need, regardless of what happens to you.
Because it’s such an important purchase, it’s vital that you understand all of the all of the options for insurance coverage and the different parts of a life insurance plan. We know that finding life insurance coverage can be a difficult search, but we are here to help ensure that you’re getting the best plan to meet your needs. (more…)

Affordable Life Insurance For Smokers

When you apply for life insurance coverage, the company is going to look at dozens of different factors before they accept or decline your application. They are going to look at everything from your occupation to your age. One of the biggest factors that they are going to look at is if you use any tobacco. As you probably know, you’re listed as a smoker on your application, you’re going to present more of a risk to the insurance company, which they are going to offset by charging you higher monthly premiums.
Finding affordable life insurance for smokers is a common problem for many consumers.  It is, however, not impossible.  Take 4 minutes to read this article and you're well on your way to securing the cheapest life insurance rates as a smoker. (more…)

Table Ratings and Flat Extras Explained

Table ratings and flat extra's are used to price high risk life insurance. If you have any major health impairments or are participating in any risky activities, you'll need to understand these terms if you're in the market for life insurance.

Table Ratings

Life insurance table ratings are an additional charge on top of standard rates used for those with health issues. A life insurance company is going to give you a "health classification" and that correlates to how much premium you pay.  Here's a list of those health classifications from best (preferred plus) to worst.
Preferred Plus
Standard Plus
Standard Table 2
Standard Table 4
Standard Table 6
Standard Table 8
Some companies go up to Table 16.
Most life insurance carriers have their table ratings equal to 25% of standard rates. So a table 2 (or table B) rating will add 50% to standard rates or a table 6 (or table F) rating would add 150% to standard rates. Note that some companies have more competitive table ratings.
Your table rating depends on the severity of your health issue. After a life insurance company reviews your medical exam results and doctors records, they will assign a table rating according to their underwriting guidelines. Each company has its own unique underwriting guidelines and it's the job of your agent (termlife360.com) to find the company that will give you the most favorable rate. If your health is not well enough to pass the traditional medically underwritten exam, there are other alternatives such as life insurance without a medical exam that will come with a higher premium rate.

Flat Extras

The flat extra method of rating a life insurance policy charges an extra dollar amount per $1,000 of the face amount. Flat extras can be permanent or temporary. They are usually assigned to risky activities such as: base jumping, skydiving, scuba diving, rodeo riding or any hazardous occupation. They are also assigned to people who are recovering from major health issues.
Let's start with an example of a permanent flat extra. Let's say you're a skydiver doing less than 50 jumps a year. You're applying for $250,000 20 year term policy. Based on your health, you can get this coverage for $1,000 a year, but the life insurance company assigns a flat extra of $3 per $1,000 of coverage if you want skydiving covered. The flat extra would add an additional $750 a year ($3 x 250) for a total of $1750 of annual premium. The life insurance would cover all causes, including your skydiving. Be aware that if you retire or choose to give up skydiving or whatever hazardous activity you're doing, your agent can negotiate that flat extra off your policy.
A temporary flat extra example would be successful treatment of breast cancer. Let's say you beat breast cancer last year. Underwriting guidelines show you need to be cancer free for 5 years to qualify for standard rates, so they still offer the coverage, but assign a flat extra of $5 per $1000 of coverage for 4 years. After that 4 years the flat extra charge falls off and you pay standard rates.
If you are faced with a table rating or flat extra, make sure:

  1. You are open, honest and detailed about your health issues or risky activities so your agent can find the company that will look most favorably at your situation. Withholding information is not in your best interest.
  2. Your agent submits an "informal application" to the companies they think will offer the best rates. This takes several days and the vast majority of agents don't do this because it takes so much time. Your agent will get a reply from an underwriter confirming the rate BEFORE you submit the application. No surprises and you can attach this to the application. Assuming the exam goes well and you were honest about your health, the rate you receive will be no worse than what comes back on the informal application.
At Term Life 360, we offer over 50 life insurance carriers and are impaired risk specialists.  We'll go through all our carriers to find the company that will offer you the lowest rates.