- What does LifeQuote provide consumers?
- Why do I need life insurance?
- When should I review my insurance needs?
- What are my choices at LifeQuote?
- What if I need help?
- Does LifeQuote sell all of the products that it quotes?
- How do I pay my first premium? Can I pay a premium when I apply?
- How do I obtain coverage?
- Is LifeQuote an insurance company?
- What types of life insurance products does LifeQuote sell? What is Term Life, Universal Life, Whole Life, Survivor Estate Life?
- What are some key insurance terms I should know?
- Why can´t I use my own doctor for the insurance exam?
- I went to my doctor last month. Can´t you use his notes?
- I had my blood drawn for a physical a couple of months ago. What can´t you use that?
- I don´t know who or where to go?
- I want to be sure my doctor has these results, so if something is wrong, he can treat it. Will you send them?
- Are these results really used to try and charge me more for my premium?
Consumers please note: LifeQuote provides this generic information so that you will know what questions to ask as you proceed with the selection of a policy to meet your needs. term life Insurance policy specifications and features are stated in the insurance policy and vary from company to company. Each insurance company has it´s own underwriting guidelines which may be subject-to change by the company. The decision as to what premium rate you might qualify for rests solely with the insurance company based on the application and medical or other information they receive. LifeQuote does not offer tax advice, financial or estate planning, or investment advice. You should contact your tax or accounting professional regarding these matters.
Life Insurance Answers
- What does LifeQuote provide consumers?
LifeQuote is an independent company providing consumer Life Insurance Information and free life insurance price comparisons from selected insurance companies. LifeQuote provides numerous choices based on premium, and other criteria. We do not make the choice for you, but we do provide you with highly Competitive Life Insurance Quotes and the information to help you make an informed choice.
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Why do I need Life Insurance?
- To replace lost salary or income
- Burial expenses
- Family needs
- Buying out a partners interest in a business
- Providing for a partner
- Estate needs
- Charitable giving
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When should I review my Life Insurance needs?
- You are getting married
- You are getting divorced
- The birth of a child
- The adoption of a child
- Buying a new home
- Starting a business
- Buying an existing business
- Taking out a large loan
- Starting a new higher paying job
- Leaving a job and losing insurance benefits
- Your existing insurance premium is going to increase
- You bought insurance while a tobacco user and now you have quit for more than one year
- You were charged a higher premium on a policy because of health or activities and your situation has improved
- You find that you have an estate tax problem
- Your health has deteriorated
- You or a relative can no longer make decisions for themselves
- Every few years just to be safe
Did you have any of these changes since you last reviewed your life insurance?
If so, please Life Insurance Needs Calculator to see if you have sufficient insurance.
(The Life Insurance Needs Calculator is provided as a tool to help you estimate coverage that typically would be needed based on the information you input. Be sure and reduce the total coverage amount for existing insurance that you plan to retain. Please see your professional advisor for an exact estimate of your needs. Information derived from this calculator is by no means intended to be a substitute for a professionally prepared financial plan.)
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What are my choices at LifeQuote?
LifeQuote constantly reviews new products and rates from the top rated insurance companies in America. No one company has the "best" life insurance product for every age, amount, or situation. Your personal needs are unique. We at LifeQuote understand this. Therefore we always provide a selection of competitive products from different life insurance companies. The selections shown are the competitive rates currently available. Rates may change when the insurance company actually evaluates your insurance application. Which one is best for you? That is a personal decision.
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What if I need help?
LifeQuote provides answers to many questions both on our web site (Glossary, Best Kept Secrets, Frequently Asked Questions) or call us for any other questions at 800.521.7873. This information is provided free of charge and in no way constitutes a solicitation to buy life insurance. Click one of the following to learn more:
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Does LifeQuote sell all of the products that it quotes?
LifeQuote is an independent company. We do not work for, or are a part of, any insurance company. We do select from most of the competitive products available based on LifeQuote´s criteria. On rare occasions, we may even quote a product we do not normally offer in the special interest of the consumer. If so, we will advise you of that fact.
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How do I pay my first premium? Can I pay a premium when I apply?
All checks must be made payable to the insurance company you chose. Premium checks are routed by LifeQuote to the insurance company. LifeQuote does not accept any premium checks that are not made payable directly to the insurance company. Some companies will accept a premium with the application. (see conditional coverage for an explanation)
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How do I obtain coverage?
Once you decide which policy is right for you simply complete a simple online Coverage Request, or e-mail us with your specific request. A complete application kit will be promptly sent to you. Your kit will include all forms and consumer information required in your state. All forms are marked and are easy to complete. Just follow the simple instructions that we provide with the kit or on our web site. If you prefer, you can call 800.521.7873 for any questions about your kit. You will be contacted by the medical exam service to schedule an exam at your convenience. LifeQuote will send you periodic reminders by e-mail if you have any outstanding requirements. LifeQuote will handle all the details to obtain your coverage as quickly as possible. Once you have been approved, your policy will be delivered to you for inspection. State consumer laws require a "free-look" period. This means if, for any reason, during the free-look period, you change your mind, you may return your policy and receive a full refund from the insurance company. LifeQuote makes insurance buying simple and trouble FREE.
Approval of an application is solely at the discretion of the insurance company and is not guaranteed
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Is LifeQuote an insurance company?
No, LifeQuote is an independent company that provides an internet consumer service and markets life insurance policies from all of the top life insurance companies.
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What types of life insurance products does LifeQuote sell? What is Term Life, Universal Life, Whole Life, Survivor Estate Life?
LifeQuote sells Term Life, Universal Life, Whole Life, and Survivor Estate Life.
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What is Term Life?
Term Life is only a death benefit. If you pay the premium, in the event of death while covered by the policy, the insurance company will pay the policy death benefit. When considering Term Insurance, you should first determine the length of time you need the coverage and then look at the total cost over those years. Term premiums may be based on annual renewable, 5, 10, 15, 20, 25, 0r 30 year level premium arrangements. For short term needs such as to cover a bank loan or business obligation, annual renewable, 5 or 10 year level premium policies are often the cheapest. For longer periods of time, 15, 20, 25, or 30 year level premium policies are often the best buy. Consumers with long term needs should be aware that if they keep a level premium term policy longer than the initial level premium guaranteed period, their premiums will increase substantially or may not renew.
Note that in some states level premium term may be limited in the number of years of coverage, or it may not be available above a certain age. If the type of term policy you request is not available in your state, LifeQuote will provide you with a quote for a plan available in your state that is closest to what you requested.
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When is Term the right choice?
If the lowest dollar outlay is your main concern, and your insurance need is for a few years or for a certain time period, term may be the best option. If you need lifetime coverage, an affordable Universal Life policy or other permanent policy may be a better solution.
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Is Term the only type of policy I need?
Determining how long to keep your coverage in force is the key to deciding if you need a policy other than term. For example, some needs exist for a limited time such as your mortgage, or the time until your children are grown and are self supporting. On the other hand, suppose you need coverage to replace your income in the event of your death. Perhaps you need insurance to pay estate taxes. These two needs are examples of needs that can last a lifetime. If your needs extend more than thirty years, there are different types of permanent policies that can meet your needs. Initially, the premiums on these policies are more expensive, bot they may prove useful to you. Check with LifeQuote for these policies.
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Universal Life
Is a flexible permanent policy that allows a policy holder to customize their own policy. Within certain limits set by the insurance company, you can adjust your premiums from year to year, increase or decrease your death benefit, and still accumulate cash values. Because of it´s flexibility, Universal Life is a popular first time permanent policy for budget minded young families with changing needs. This policy is often used as an inexpensive level premium alternative when coverage is needed for many years.
A Universal Life policy can have a level death benefit (like most term policies), or it may provide an increasing death benefit which includes net policy cash values as an added death benefit. The increasing death benefit option usually requires a higher premium.
Term insurance will eventually have increasing premiums after the level premium period expires (example: year 21 on a twenty year level term policy) as a result of this, over time, your term costs will ultimately become very expensive. On the other hand, Universal Life will give you the security of an inexpensive death benefit that can last for many years. Some insurance companies offer special features that provide for extended premium guarantees on Universal Life policies. For example, the guarantee may be in the form of a "rider" or supplemental benefit which guarantees that if you pay a specified minimum premium each year, the death benefit will be guaranteed to
continue for a specified number of years (similar to level premium term). These guarantees can sometimes last as long as fifty years. The length of the extended premium guarantee varies from state to state. Each company has it´s own guidelines regarding these extended guarantees.
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Whole Life
Provides a lifetime guaranteed death benefit, a guaranteed fixed premium, and guaranteed cash values. These policies may share in the excess earnings (if any) of the insurance company. These earnings may be credited to your policy cash value either as dividends or as excess interest.
Dividends or excess interest may be used to add to your polcy´s total death benefit, or to reduce future premiums. Similar to Universal Life policies, your cash values can be used to pay future premiums, supplement retirement and college education, and provide emergency cash reserves. Consumers should be aware that while the cash values in a life insurance policy have many uses, they should not be considered as a pension or savings plan.
In summary, Whole Life is for the person who wants guaranteed permanent coverage with a guaranteed premium for the rest of their life.
Also known as "second to die" is a special policy covering two lives, typically a husband and a wife, or business partners. These policies are designed to provide cash to cover estate taxes or business liability which have to be paid after both people have died. The survivor policy premium is often much less than if individual permanent coverage was purchased on each life. We suggest that if you are considering survivor life you should talk to a LifeQuote agent and shop the rates since these policies are highly customized to fit your personal needs. Please speak to your professional tax or estate planner regarding the effectiveness of a Survivor Estate Life policy as a part of your planning.
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What are some key insurance terms I should know?
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Conditional Coverage
Sometimes a person applying for insurance wants the coverage to begin immediately. At the time you are first applying for a policy, the insurance company has not yet had an opportunity to review all the pertinent information regarding your application. The insurance company may only provide " conditional coverage" under the terms stipulated in their "conditional receipt" page of the application. Each insurance company has it´s own specific rules regarding conditional coverage. Inside the insurance application is a conditional receipt page. Please read it carefully. This page includes the exact rules and conditions that the insurance company requires you to meet if you are to qualify for conditional coverage. Companies limit the amount of conditional coverage they offer and in most cases, a full initial premium is required to accompany the application if conditional coverage is being requested. Pay particular attention to the qualifications you must meet to be covered. Many companies will only offer conditional coverage if you ultimately qualify for the rate class you apply for.
Since coverage under this feature is conditional, you may not qualify and the company may not pay a claim. Never cancel existing insurance until you have new coverage properly in place.
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Limited Payment
Cash values, excess interest earnings, and dividends can be used to pay premiums beyond a specified date for Whole Life and Universal Life policies. This is a way to pay for ongoing coverage over a limited number of years. "Limited Payment" is a program design, not an insurance policy feature. A limited payment design is based on a projection of future cash value or dividend growth. The projection is typically based on insurance company current investment experience and assumptions and is more than likely to change over time. If performance is less favorable than expected, additional premium will be required. Limited payment designs are not guaranteed by insurance companies. LifeQuote makes no representations as to the effectiveness or future success of any limited payment design quotation, projections, or assumptions.
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Outlay
The actual cash payment you make to the insurance company for premium payments each year.
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Net Cost
Your total payments for a policy less any cash surrender value in your policy, the profit or loss if you cancelled the policy at a given date.
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Cost Comparison Indexes
There are two types of cost comparison index numbers. Both assume you will live and pay premiums for the next 10 or 20 years. Cost Comparison Indexes are now included in many insurance company proposal ledgers to assist you in evaluating the proposed policy. Indexes take into account the loss of the potential earnings on your money.
- The surrender cost comparison index helps you compare costs over a 10 or 20 year period assuming you surrender the policy and take its cash value at the end of the period. It is useful if you consider the level of cash values to be of special importance to you.
- The net cost comparison index helps you compare costs over a 10 or 20 year pay period assuming you will continue to pay premiums on your policy and do not take its cash value. It is useful if your main concern is the benefits that are to be paid at your death. The two index numbers are the same for a policy without cash values.
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Riders
These are added benefits that can be purchased on a policy. Each rider is subject to the specific insurance company´s underwriting guidelines. The terms and conditions governing each rider will be found in the policy. Term Insurance Rider can be added to Whole Life or Universal Life policies as an affordable way to increase death benefits while still enjoying the benefits of a permanent policy. Other popular riders allow for depositing excess premium in a policy to accumulate added cash values, or providing a waiver of premiums if you become totally disabled before a specified age, or to pay additional benefits if you ide of accidental causes, or providing affordable benefits for a spouse and/or children. Each rider is subject-to the terms and conditions of the company and are stated in the policy contract.
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Long Term Care Benefits
A special rider or policy offered by some companies will pay long term or catastrophic health care benefits as a supplemental benefit. These are called living benefit or care riders. Depending upon the policy, benefits may be for nursing home care and/or at home health care.
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Accelerated Death Benefits
Also known as "Living Needs Benefits", provides access to a portion of the death benefit proceeds before death when the person is diagnosed with a terminal illness. This benefit is now automatically included on many affordable term policies. The percentage of total death benefit that may be eligible to be advanced under this benefit varies by insurance company. Most states now require a specific consumer disclosure be included with every application if the proposed policy carries this benefit. Please read it carefully.
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Loans
Universal and Whole Life policies allow you to utilize some of your policy cash value for current needs in the form of a loan. The insurance company will charge a low interest rate that is often less than current bank rates. You may elect to pay loan interest or to have it deducted from future cash values. Outstanding loan amounts and unpaid loan interest will reduce death benefits and cash surrender values.
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Re-Entry
On many term policies, you can qualify for lower future premiums if you submit new evidence of insurability (usually a new medical exam) on the renewal date. Of course, qualification for a lower premium depends upon your insurability. You may be better off purchasing a policy with a longer level premium guarantee rather than taking the risk that your health may change.
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A Rated Life Insurance Policy
This may be the result of having an adverse current or past health history, or may be due to occupation, or hazardous activities. In the event an applicant is offered coverage at a higher rate due to unfavorable information, consumer laws in most states provide the consumer or his physician certain rights of access to this information. A policy owner may apply for a reduction or removal of a rating if the particular condition or activity that caused the rating has changed for the better. Each insurance company has it´s own rules and requirements for the reconsideration of a rating. There is no guarantee that an insurance company will remove a rating, but it is often worth applying for.
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Smoker Status
Insurers will give a lower premium rate to buyers who do not smoke or use tobacco. If you smoked or used any tobacco product in the past, most carriers will consider you a non-smoker if you have not used any tobacco product for one year prior to applying for coverage. Some insurance companies offer special rates for occasional cigar users and fro those who only use smokeless tobacco. If you purchased a policy while a smoker, you can re-apply for a reduced non-smoker rate one year after you have quit using tobacco. Consumers should be aware that nicotine can be detected in a variety of routine screening tests that are now commonly required by most insurance companies. Insurance company guidelines regarding tobacco use and rules regarding reconsideration after you have quit using tobacco vary from company to company and are subject to the company´s current rules and procedures.
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Life Insurance Company Ratings
There are five major insurance industry rating services: A.M. Best, Standard & Poor´s, Moody´s, Fitch (formerly Duff & Phelps), and Weiss. These independent services provide information on insurance company financial performance, stability, claims paying ability, and more. Each ratings service has a different set of criteria and may focus on one or more aspects of a company´s financial performance. For more information on the ratings services, consumers can contact them directly. Most have web sites. The top ratings are: A.M. Best A++; Standard & Poor´s AAA; Moody´s AAA; Fitch AAA; Weiss A+. Generally, LifeQuote recommends companies that carry at least an A+ rating from A.M. Best. Occasionally, an A rated company may be quoted if price and company performance justifies the selection.
For all other questions, please contact us at:
800-521-7873
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Why can´t I use my own doctor for the insurance exam?
An insurance exam has to be impartial and provide objective information relative to risk assessment. Often a personal doctor is a patient advocate- and wants the client to do well. So do insurance companies, but with all the accurate information needed to make a fair decision. Additionally, a client can ask a personal doctor not to disclose certain information (doctor-patient privilege), which may be a conflict of interest for the doctor to act as both an agent for the company and the potential insured.
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I went to my doctor last month. Can´t you use his notes?
Doctors see patients for a variety of reasons. Sometimes it may be a blood pressure check- other times to follow up on a certain condition. The insurance exam asks and looks for specific questions that relate to risk in overall medical condition, and give the underwriter what he needs to proceed.
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I had my blood drawn for a physical a couple of months ago. What can´t you use that?
Blood work for insurance is different than standard blood work for a general physical. Actually, the insurance requirements are more inclusive, and test for parameters of health generally not on the standard physical unless there is a specific reason to have them done. HIV testing is one of those tests, for example. Urine specimens also test for nicotine equivalents (to adjust premiums as smokers or non-smokers), drug abuse, and other findings not usually included in a general doctor´s work-up.
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I don´t know who or where to go?
Insurers have lists of paramedical companies, whose job it is to arrange such testing. They make the process convenient and can arrange for everything from blood drawing to a treadmill examination.
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I want to be sure my doctor has these results, so if something is wrong, he can treat it. Will you send them?
Absolutely. Just ask, and the results will be mailed expediently to a personal physician.
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Are these results really used to try and charge me more for my premium?
Quite the opposite. Normal results allow insurance companies to charge the lowest premium possible. Select, preferred, and super preferred rates are the result of knowing that a client has a lower risk relative to other insureds with medical impairments. Even those who have medical problems may get better rates than expected if testing shows that their condition is well controlled and cared for.
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