Getting an Accurate Term Insurance Quote on the Internet

Term insurance - Simple and straight forward; right?

Yes and No. Term insurance is a simple way to begin the lifelong process of protecting your human life value. It generally has no cash value* and can be designed to meet a specific insurance need for a specific length of time, thus the name "term" insurance. Term insurance comes in a variety of flavors: Annual renewable term, 5, 10, 15, 20, 25, and 30 year terms, decreasing term or mortgage term, Non-Medical term (No medical exam required) and ROP** (Return of Premium) term.

Term insurance is very easy to explain: for example, a typical 20 year term policy has a guaranteed premium (cost) that is guaranteed to remain at that same premium for 20 years. With a significant annual increasing premium at the end of the initial 20 year term.

The insurance company is assuming that you will fall into one of three categories at the end of the policy's term:

• 1. You no longer need the insurance and you will drop the policy.


• 2. You are in good health and will reapply for a new policy with new underwriting.


• 3. You are in poor health or dying and must keep the policy in-force to collect the death benefit. If you fall into category 3 you will pay dearly to keep the policy. You can reduce the risk associated with category 3 by reviewing your term insurance coverage on a regular basis.

Quoting term insurance is not a simple concept; the insurance company determines the appropriate price to charge by a process called underwriting. Underwriting is complicated because different companies may have different requirements to qualify for a certain underwriting classification. If you do not know the underwriting requirements for a particular company you are not likely to find the best price and you may well find you've been offered a rerate (higher price). So what is the solution to the underwriting dilema? Enlist my services and get a qualified and experienced life insurance agent that knows which companies will give you the best price for your underwriting issues!

Here is a partial list of issues that affect underwriting:

• Height/Weight
• Nicotine use: Cigarettes, Cigars, Pipe, Chew - how much, how long
• Family History: Any cancer or cardio disease prior to age 60 in parents, brothers or sisters?
• Driving history: Tickets, DUI?
• Blood Pressure
• Cholesterol Levels
• Liver Enzyme Levels
• Occupation
• Avocation: Hazardous sports - scuba diving, sky diving, motor vehicle racing, mountain climbing.
• Health History: Diabetes, Cancer, Heart Disease, etc. etc. etc.

Of course, it is still possible to get rerated because companies will be reviewing medical records and lab results that may be unknown to you and I, however, when we are armed with as many of the details listed above as possible, we will be accurate the vast majority of the time.

*Dividend paying policies may accumulate some cash, these kind of policies are rare or are generally associated with a permanent life insurance plan.

**Return of Premium Term Policies refund all premiums paid at the end of the term and may refund some of the premiums if the policy is dropped prior to term.

Like me, because you are building your financial future, you naturally want to know it is secure. Begin your insurance journey by framing your security on a foundation of term life insurance. You can get started by visiting my website www.jamesrichard.com