Straight Answers to Every Single Question You Can Think of About Buying Life Insurance

• What’s covered and not covered on the modern life insurance policy?
• What is the difference between term and whole life insurance?
• What is the difference between “guaranteed issue” and “accidental death” insurance?
• What are the differences between life insurance companies? Why are some less expensive than others?
• What does “waiver of premium” mean?

How long does it take to get new life insurance?

For plans that require a paramed exam, 90% of our policies are underwritten and issued in under 30 days. It can take longer if you have more than one doctor that we have to obtain medical records from. The good news is that most companies allow immediate coverage from the time the application is signed, which can give you up to $1 million in coverage during underwriting with some companies. A few companies in the No Paramed column provide instant decisions for those in very good health needing less than $500,000.

What’s covered and not covered on the modern life insurance policy?

Today’s modern life insurance policy covers death by any cause, at any time, in any place, except death by suicide within the first 2 policy years (1 year in some states).

What companies does LifeQuotes represent?

Unlike most insurance agencies that represent 1-5 companies, we represent 50 leading companies. The companies we work with are among the leading brands: American General Life (AIG), Banner Life and William Penn (both Legal & General companies), Gerber Life, Mutual of Omaha, MetLife, Protective Life, Prudential Life, John Hancock, Pacific Mutual, Transamerica Life and many more. This selection ensures that you will pay the least amount of money for a life insurance that best suits your needs.

What is the difference between term and whole life insurance?

Term Life insurance is meant to cover needs for a defined period of time such as 10, 15, 20, or 30 years. Typically bought by those in the age range of 21-65, term life is most commonly used to replace the income of a family breadwinner or caregiver so that life for those left behind can proceed as planned. Whole Life (and Lifetime Universal Life) is designed to give you a level amount of coverage at a known price for the rest of your life. Whole Life is utilized to amass cash values, pay estate taxes and build an estate.  Final Expense Whole Life is a popular coverage because there is no medical exam, it is sold in small amounts up to $25,000 and it is designed to pay for burial and other final expenses after death.

What happens at the end of an initial rate guarantee period on a term life policy?

There are typically three options with a term life insurance policy. 1. You can cancel the policy because you no longer have a need for life insurance. 2. You can continue paying for the insurance at a much higher rate (but with no medical exam) or possibly reduce the amount of coverage. 3. Or, sometime during the initial rate guarantee period, you may be able to convert your term policy to a permanent policy without a medical exam. The fact that these options exist within most term life policies is a good reason to never lapse coverage until you have first consulted with a reliable life insurance agent who can inspect your policy and advise you. If, at the end of the initial term period, you still have a need for life insurance and are in good health, you can shop around for new coverage.

How much life insurance do I need?

As a rough rule of thumb, many financial experts recommend at least 10 times your annual income, or $300,000 minimum for a non-working caregiver. But each situation is different depending upon your income, lifestyle, number and age of dependents and your total debt situation. A quick and easy way to get a professional opinion in total privacy is to use the Life Happens Needs Calculator at http://www.lifequotes.com/articles/life-insurance-needs-calculator/.

How long do I need protection?

The 20-year term policy is the most popular choice of our customers as it covers the time period of many common financial obligations such as; dependent children and common debts such as a mortgage. If you’re looking to make sure final expenses and funeral expenses are taken care of, then you should get permanent insurance, either universal life or whole life. One thing you should realize is that if you discover you need additional insurance or a longer term down the road, you can always reapply for a new longer-term policy, and, once approved, cancel the old one. You are not obligated to keep any policy for the entire duration of the term. So don’t worry about having to make a decision today that can’t be changed for 20 to 30 years!

Should I get coverage for my spouse?

Yes! If something should happen to your spouse, wouldn’t you suffer a financial loss? While a homemaker might not produce income, there is still a need for final expenses and childcare at the very least. Typically, a non-working spouse can get equal or up to 1/2 of the amount of life insurance the working spouse can, but underwriting rules vary by company.

Should I get a policy for my children?

Everyone can have a life insurance need, although the mortality rate for children is very low. Child policies are often whole life policies that build cash values, which can then be accessed for college down the road. Or they can be given as a gift to your child when they become adults and you’ve already established a policy for them. Some child policies allow coverage to be increased without proof of insurability! Some adults find it convenient to add child rider coverage to their own policy at the time they apply for coverage. All eligible children can be covered for one price.

Why should I buy through LifeQuotes?

With 32 years of experience under the same management, 90 insurance professionals and 330,000 sales under our belt, we’re on your side! And with something as important as life insurance, you need an advocate. Whether you need a $5,000 policy or a $25 million policy, we have the expertise to give you unbiased advice every step of the way so that you can have peace of mind. We have held an A+ rating with the Better Business Bureau (BBB) for over 10 years.

I’ve had some health issues, can I still get life insurance?

Yes, we have something for everyone, regardless of your health. Just go to www.lifequotes.com and click ‘View Quotes Now’ to get quotes tailored to your specific health history

How do I apply for a policy?

You’ve already taken the first step by coming to LifeQuotes. We have a simple three step process to start an application right here on the website. Generate a quote, choose a plan and then start an application. You can get a quote and complete your application by going online to www.lifequotes.com. Click ‘View Quotes Now’ to get a price comparison of our 50 different companies. You can apply online or call us to speak to one of our licensed agents. Once you’ve completed the application you’ll be assigned to a LifeQuotes employee who will help and guide you through the process.

Do I have to take a medical exam?

No you don’t. We have many no-exam options available for those who don’t have the time or don’t want to take an exam.

Do I have coverage while I am waiting for my policy?

Most companies offer a Temporary Insurance Agreement (TIA) or Conditional Coverage. If you choose to apply for the TIA / Conditional Coverage, are eligible for the coverage, and remit payment with your application, you can be covered during the underwriting process. Some of the no-exam or instant decision products do not have TIA or Conditional Coverage. Your application will have specific details of the terms and conditions of the temporary coverage.

I don’t see where to add a contingent beneficiary.

The policy owner has the right to establish and change beneficiaries at any time. The contingent beneficiary is paid only if the primary beneficiary(ies) are not living at the time of the insured’s death. The online application form that you are completing does not have a contingent beneficiary section on it, but the paper version does. So once your policy is issued, you can add a contingent beneficiary at any time. Our advice is to proceed through the form and underwriting, then, we can provide you with a beneficiary change form at any time.

Can I list anyone I want as the beneficiary?

Your beneficiary has to have insurable interest, that is, the beneficiary must be someone who has a financial connection to you, who would be negatively impacted in the event of your passing, such as a spouse, child, or other immediate family member who is financially dependent on you.

Will the price change from the quotes that I see here on your website?

Once a policy is issued, the prices cannot change during the initial rate guarantee period. But in order to get a policy issued at a requested price, you need to make sure that you meet all of the listed ‘Acceptance Guidelines’ on our illustration. The insurance underwriters will then review your file, and will make the final determination regarding price.

If I choose a no-exam application, can I complete the application for someone other than myself?

No, the proposed insured needs to complete the application, which can be done online or over the phone with an agent.

I want to complete an application.  How do people normally choose a company?

There are so many to choose from. We always provide as many options for you as possible, and the actual choice is completely up to you. Most people will choose the company with the least expensive cost. All of our companies are very highly rated with AM Best, Standard and Poor’s, etc, so whichever option you choose is an excellent choice from a reputation standpoint.

If I want to get coverage with my boyfriend as a beneficiary, and my children as beneficiaries, do I need two separate policies, or can I put them all into one?

It is your choice, the company would accept it either way. You might be able to save money if you got one policy with a higher coverage amount, then split the beneficiaries in that one policy. Life insurance is a little like buying in bulk, and buying more coverage can often save you money. But again, it is your choice.

When I am completing the application, it asks me for my driver’s license, and I do not have a driver’s license.

It is okay to answer ‘N/A’ (Not Applicable) when it asks you for your driver’s license number.

Can I get the price listed on the flyer I got through the mail?

Yes, the sample rates shown in our ads are real and available to applicants who have no ratable health or lifestyle issues. Prices are based on age, gender, health, and lifestyle details.

How do I apply online for someone from out of state?

Every applicant for life insurance should complete their own application online or by phone because every insurance company requires every applicant to answer application questions in the first person. The life insurance application then becomes a permanent part of the policy, with all answers being consider warranty statements of accuracy. Only under rare circumstances can one person buy life insurance on another and even then, the applicant must be available to answer questions about themselves.

What is the difference between guaranteed issue and accidental death?

‘Guaranteed Issue’ means that there are no health questions or exams in order to obtain a life insurance policy. ‘Accidental Death’ is a type of life insurance that only pays if you die in an accident.

Am I eligible for life insurance even if I’m a homemaker?

Yes, you are eligible for coverage. Please review the illustrated acceptance guidelines after you complete your profile.

I would like to complete an application with an agent over the phone and do not want to complete the application online.

Please call 1-800-324-6370.

Do I get a discount on life insurance if I also have car and home insurance through GEICO?

Unfortunately, no. Geico does not actually sell life insurance directly. They route all life insurance customers over to us at Life Quotes, and we assist you in setting up a life insurance policy with a separate life insurance company. Your contract would be with that life insurance company, not Geico, so there would be no Geico discounts available. Life insurance premiums are set by each individual life insurance company based upon each applicant’s own characteristics. But life insurance price are now at all-time lows.

How do I apply for me and my wife? Would it be better to go to the insurance company directly, or apply online at www.lifequotes.com?

You can request an application online or by phone with LifeQuotes.  Many of our companies do not sell direct to consumers but use agencies like us. You will also have the added benefit of being able to compare many different companies and plans, so you can ensure you are getting the option that works best for you. If you go to an insurance company directly, they will only have one or very few plans to offer you.

What’s the difference between the companies and why are some cheaper than others?

Life insurers compete based upon several factors having to do with an applicant’s health and lifestyle. So Customer A might find that Company X is the least expensive, while Customer B (with different health issues than Customer A) might find that Company Y is the least expensive.

I want to contact the company directly to write an application.

The 50 companies on our system sell through independent agents. Only a handful sell direct.

Can I purchase a life insurance policy on my parent?

Sure! As long as the proposed insured is made aware of the insurance being purchased on their life. They will have to sign the application and be able to read English and have the mental capacity to know what they are signing.

Do you need to know my doctor information?

Yes, because all life insurers underwrite based upon health history and most will access your health records.

What does waiver of premium mean?

Waiver of premium means that if you are unable to pay your premiums due to permanent or total disability, the premiums are waived for a certain period of time. Each company has their own requirements.

Where can I see the return of premium plans?

Return of premium plans are listed at the bottom of each term option. Each plan will have ‘Return of Premium’ or ‘ROP’ in their plan title.

Where can I see the whole life plans?

We now automatically quote Whole Life on all quote requests. Once you get to the screen that shows the quotes, look at the quotes under the tab called, ‘LifeTime Plans’.

How can I find quotes for life insurance?

To get your personalized quotes, please go to www.lifequotes.com, and click ‘View Quotes Now’. You will be asked to provide your height, weight, age, and will be asked several questions regarding your smoking, health, and lifestyle history. Please answer all questions, and you will be able to view all quotes available. You can even complete the application online!

If I am approved as applied, will the insurance draft the premium automatically, or will I be notified before a draft occurs?

Once approved at the rates you applied for, you can expect your account to be drafted. If the price is going to be any different, the insurance company cannot draft and LifeQuotes will then notify you to discuss the new price and any options available to you.

Will being pregnant make a difference in my insurance?

Yes, you need to enter your current weight when you run your quotes. Pregnancy can also affect your lab results, and any complications could result in a higher price. Some companies may not even want to offer until you have given birth. Please contact us if you are pregnant, and we will see what options are available to you.

Do you have a term life policy that allows me and my spouse to be fully insured on the same policy?

No, you and your spouse would have to apply for separate term policies in order for each of you to receive the full amount. Some policies offer ‘spousal coverage’ riders but that rider is often for a small amount of coverage.