What Factors Determine Term Life Insurance Rates
Do you know what factors determine your term life insurance rates? Whether you’re a first-time buyer or a seasoned veteran, the process can be confusing. Luckily, this handy guide can help you narrow your search for answers. Here are the most common factors that affect an individual's premium:
Age: A 20-year old will have higher premiums than a 40-year old.
Smoker/Non-smoker: Smokers generally pay more, and people with stricter smoking histories may make it too difficult to get coverage at all.
James Risk Factors: This includes obesity and high blood pressure as well as other health problems such as chronic conditions or past injuries.
Health (or lack thereof): Your health will determine the level of coverage that you can purchase. In fact, there are some kinds of coverage that you cannot purchase if you have a pre-existing condition.
Source of income: A few companies may offer lower premiums to full-time employees or to those who have multiple policies with the same company.
Marital status: Whether or not you’re married, and if you have dependents will affect your rates.
Lifestyle: This will include your credit score and driving record as well as hobbies such as skydiving or deep sea fishing.
This is just a small sampling of the factors that will affect your premiums. So, if you're looking for some more information on what factors may affect your rate, contact one of our agents at (888) 516-6177, to learn more about finding the best insurance rates.
The Basics: What Is Term Life Insurance?
At its most basic level, term life insurance is any type of coverage that you purchase for a set period of time. The most common types are so-called endowment or cash-value policies that protect the policyholder's cash payments upon death in the event they have prepaid premiums to fulfill.
If you've ever heard the phrase, "pay as you go," this is the type of policy that makes that possible. In return for paying premiums on a monthly or quarterly basis, a policyholder will be promised a lump-sum payout in the event of his or her death. The amount of coverage and premiums paid are determined by an underwriter who will look at an applicant's age, gender, health, personal habits and family history to determine how much risk he or she presents.
There are two types of policies: pure term life and whole life insurance. With pure term life insurance, premiums remain the same throughout your coverage period. With whole life, premiums increase every year and the payout decreases as time goes on, eventually reaching zero.
Most term life policies offer some combination of these general features:
Basic or "survivor" level: This provides minimum coverage equal to the death benefit. If a spouse is dependent on the policyholder and there are no other dependents, the policyholder pays even less. The only difference between basic and standard is that if your spouse predeceases you, you will get nothing after expenses and debts have been paid out.
To learn more about this type of policy, visit our website at www.insgeorgielylife.com
Standard level: This provides amounts of coverage that are between the basic level and the "maximum" offered by one's state. The maximum level may be lowered for dependents. Coverage is always available without limits on how much you can borrow for repayment or whether you're capable of paying it off. Most standard policies include a lapse clause that allows you to cancel coverage at any time in order to avoid paying the same premiums month after month and year after year.
Maximum level: The amount of coverage limits that a policy can provide are based on how much your age, gender and health affect your risk as well as your lifestyle and family history. Medical underwriting, a process that breaks down health issues, is an important factor in determining how much claim you can expect as well as how long it may take to receive your settlement.
This level of coverage is often called "double indemnity" as the amount payable to you or your beneficiary is twice that of a standard policy. With double indemnity, any policyholder who has a serious illness or accident can receive all of their coverage without further premium increases, while still avoiding paying the cost of covering pre-existing conditions or cases where they're not able to pay their claims. Read through our policies at www.insgeorgielylife.com to learn more about double indemnity.
If you have any other questions, contact one of our representatives at (888) 516-6178 who will be happy to answer any questions that you may have.
What Payment Terms Should You Expect?
Term life insurance can be paid by monthly, quarterly or annual installments as long as you make the payments within the period specified in your policy. If the policyholder misses a payment, they are charged penalties that will appear as if the premium went up. This penalty is known as "pre-payment." Some policies provide for a grace period during which there is no penalty for missing payments. If the policyholder has a significant medical or financial hardship, they can request an early payment without penalty.
Term life insurance is not guaranteed as long as you make the payments owed to your insurance company. Even if you pay your premiums on time, they are not obligated to issue you any policy benefits should the death of a loved one occur during a period when no payments were made. To learn more about how term life insurance works, visit our website at
www.insgeorgielylife.com
Why Do I Need Life Insurance?
Insurance is intended to protect loved ones from unexpected financial losses that result from tragedy or accident. Life insurance can help pay off debts, provide for your spouse or children in the case of your death and provide financial security for your family.
Life insurance is commonly used to cover the cost of funeral expenses and burial, as well as to protect the family's existing assets from being seized by creditors. Life insurance also provides some level of temporary financial relief from inherited debt. For example, if a child is born with a disability that prevents them from working and causes them to require long-term care, life insurance can fund payments for a period when that child will be unable to work and pay income tax on their benefits.
Some families begin the application process for life insurance while they're still on the "baby-making table." If you feel like raising a family is one of your biggest concerns, put life insurance at the top of your list. How much coverage is right for you? Let's get started with an assessment at
www.insgeorgielylife.com .
What Is Pre-Need Plans and Why Do You Need It?
Pre-need plans are dedicated to providing you with the tools and means necessary to maintain permanent financial security.
Conclusion
Life insurance can help you provide for your loved ones in the worst of times. Life insurance can also be used to pay off debts and other expenses that are associated with a death. This is why it's important to purchase life insurance as soon as possible and before other financial concerns arise. The best way to do this is by getting an in-person life insurance quote at
www.insgeorgielylife.com .
If you have any additional questions, contact one of our representatives at (888) 516-6178 who will be happy to answer any questions that you may have.