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Frequently asked
questions?
What term period is right for me?
What is the difference between a guaranteed premium and a
non-guaranteed premium?
What do I do when my term period is finished?
How do I know if I chose the right company?
How long will it take before my policy becomes effective?
What is required for the paramedical exam?
What is the rule of thumb for determining how much insurance
a person needs?
How do I pay my premium?
What if I am only an occasional smoker?
What is a rider?
What if I become disabled and cannot pay my premium?
Can I access my death benefit if I become terminally ill?
The basic function of MyTerm. com is to act as an intermediary
between you and the insurance company. The term insurance
companies we represent supply us with their rates, which we then
incorporate into a searchable database. When you input
information into our term insurance quote engine, the
information is run against the database, calculated, and then
displayed on your computer as a customized term quote.
What term period is right for me?
There are several different reasons for purchasing term life
insurance. These reasons tend to suggest a period of time (term
period) that would be most appropriate for you. To help with
this, we have included a few examples where different time
periods might apply. Please don't hesitate to ask our licensed
online specialist if you need any further help.
5 Year- Generally speaking, the more specific the need
for insurance is, the shorter the term period tends to be. For
example, if you have a child going to college for four years and
no need for the insurance thereafter, a five-year term may be
perfect for you. Another example of the need for a five-year
term period would be to protect a short-term loan.
10 Year- Let's say that you are a business owner, and you
have a key employee that you wish to cover with life insurance.
If you don't expect the employee to stay in the same position
for more than 10 years, a 10-year term policy may be ideal.
15 Year- Many families choose 15-year term policies to
replace one or both of the parents' income(s) in the event of
death. This allows the surviving family members to use the death
benefit as a replacement source of income. This is especially
useful where the children will be self-supporting before the
15-year term has expired, or the home carries only a 15-year
mortgage.
20 Year- This is a very common choice among people
seeking longer-term coverage because of the cost-effective
nature of the premiums. For example, over 20-years the total
premium on a 20-year policy generally costs much less than
purchasing a 10-year policy and then keeping the same 10-year
policy for an additional 10 years. If you have young children at
home, a 20-year term policy could be the perfect choice for
seeing them through their college years.
30 Year- Mortgage protection is good reason for a 30-year
term policy. If you have a 30-year mortgage, you can take out a
life insurance policy that will cover the entire period. This
will remove any stress you might otherwise feel about leaving
your family a financial burden instead of a home that is free
and clear. One thing you might want to consider when buying a
30-year term policy is that the rates are higher due to recent
legislation. Please review the following sections for options
that may further reduce your premium over even longer periods of
time.
What is the difference between a guaranteed premium and a
non-guaranteed premium?
The term insurance quotes we offer come with two types of
premium provisions: guaranteed and non-guaranteed. The first
allows you to choose a term period of 5, 10, 15, 20 or 30 years.
During this term, the premium is guaranteed to not increase or
decrease.
The second, less expensive one also allows you to choose from
the same term periods of 5, 10, 15, 20 or 30 years. However,
Unlike the guaranteed level premium policies, the premium is
subject to change before the term of the policy expires. For
example, you may have a 20-year term policy where the rates are
projected to remain level for 20 years, but are guaranteed for
only 10 years. You should be aware of these provisions before
buying such a policy.
What do I do when my term period is finished?
When trying to decide which term period is right for you it is
important to know your options. You can always apply for a new
term insurance policy after your term is through. At the end of
your policy, the insurance company will contact you to tell you
that the policy is about to expire. At this point you have three
options.
Option 1- New Policy- Depending on your age and health,
you can apply for a brand new policy with either your existing
company or a new company. The new policy will simply replace the
former policy. You must be careful when doing this because new
underwriting requirements must be met with a new policy. Be sure
to keep your old policy in force until you know the outcome of
your new application. If your health has deteriorated you might
face extremely high premiums, or even worse you might be refused
coverage.
Option 2- Keep your existing policy- If you know your
health is bad, you can continue paying on the existing policy
after it expires. It will automatically continue as an extension
of your existing policy. The good part about continuing a policy
is that you will not need to provide medical evidence of your
insurability. The downfall with this option is that the policy
typically becomes annually renewable. This means that each year
after the guaranteed term period has finished, the premiums will
begin to increase substantially every year.
Option 3- Convert to a Permanent Policy- You can convert
your policy to a Permanent Life Insurance policy and lock in
your premiums at a higher level for the rest of your life.
How do I know if I chose the right company?
Our online specialist will help you with this. After you fill
out your term life insurance quote request, our licensed agents
will contact you in order to go over the term quote together.
From this point forward, he/she will guide you through the
entire process. Working together in this way assures that you
receive the best insurance for your needs.
How long will it take before my policy becomes effective?
The amount of time it takes for a policy to be approved varies
with the company and the complexity of your situation, but we
typically expect a six-week turnaround. People in good health
generally have shorter periods. On the other hand, people with
health problems generally require more time because medical
records may have to be obtained from physicians, lab results may
need to be analyzed and other questions may need to be answered
before the underwriters can approve the policy.
What is required for the paramedical exam?
Most companies perform the same routine exam, which consists of
a blood sample, a urine sample, your height and weight, a blood
pressure reading, and the answers to several questions about
your health. Depending upon your age and the amount applied for,
other tests, such as an EKG may be required as well. You may be
examined either at your home or at the office of the paramedical
facility, but but most people schedule it at their home. It
usually takes about 30 minutes.
What is the rule of thumb for determining how much insurance
a person needs?
Please use our Needs Estimator section to help you determine a
death benefit amount that is appropriate for your situation.
How do I pay my premium?
AssetBenefit.com
serves as an intermediary between you and the insurance company,
so you will never pay us money directly. All checks should be
made out to the insurance company that is providing your
coverage. There are different options for paying your premium.
You can be billed direct annually, semiannually or quarterly, or
your payment can be drafted from your checking account monthly.
If you want conditional or binding coverage during the
underwriting period, please ask your online specialist. This
will require immediate payment, but gives you the security of
knowing you have conditional coverage until the underwriting
process is completed. Conditional coverage has limits. Most
companies limit the coverage to $250,000 to $500,000.
Additionally, if it is determined during the underwriting
process that you are not a standard underwriting risk, the
insurance company may return your money and no coverage will be
in effect.
What if I am only an occasional smoker?
If this is the case, please let our online specialist know so
that he can find you the best company and best life insurance
quote for your situation. As a smoker, the rates for life
insurance are much higher so it is important that you choose a
company with a more lenient attitude toward the occasional
smoker.
What is a rider?
A rider is simply an additional provision that can be added on
your policy. Some riders are free of charge and others add
significantly to your premium. Our licensed online specialist
will inform you of any riders that can be added to your policy.
What if I become disabled and cannot pay my premium?
If you are worried about this please ask our online specialist
for a rider called "waiver of premium". If you pay the extra
premium for this coverage, the insurance company will waive your
premium if you become disabled as defined by your policy. This
is not available in some states so please be sure to ask.
Can I access my death benefit if I become terminally ill?
With many companies and policies, the answer is "yes." Please be
aware though, that you need to choose an insurance company that
offers this benefit. Some companies automatically include this
provision for the states where it is approved, but be sure to
check with your licensed online specialist. There is generally
no additional cost for this benefit.
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