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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. Insurance policy specifications and features are stated in the insurance policy and vary from company to company. Each Life Insurance Company has it's own underwriting guidelines which may be subject-to change by the company. The decision as to what rate you might qualify for rests solely with the life insurance company based on the application and medical or other information received by their underwriting department. LifeQuote does not offer tax advice, financial or estate planning, or investment advice. You should contact your tax or accounting professional regarding these matters.
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Life Insurance Questions
- Why does a $100,000 ten year level term policy cost less than a $50,000 five year Level Term Insurance Policy?
- Are there Level premium term policies that give a guarantee for longer than twenty years?
- Can consolidating Life Insurance coverages save me money?
- Does it cost more to split term insurance coverage between two Term Life insurance companies?
- Can reducing my own level death benefit term policy be less expensive than a decreasing mortgage term or credit life insurance policy?
- How can I use my Life Insurance Death Benefit while I am still living?
- Can I own life insurance on my parents or other family members?
- Can I own life insurance on my business partner? Can my business own life insurance on me?
- Do any life insurance companies offer non-smoker life insurance rates to cigarette smokers?
- If I quit smoking, how long do I have to wait to get non-smoker's life insurance rates?
- Can cigar or pipe smokers get non-smoker life insurance rates?
- Are there super Life Insurance discounts available to people in better than average health?
- Am I too old to get life insurance? Do I need life insurance if I am over age 65,70, or even 80 or more?
- Should I apply with more than one life insurance company for the same coverage?
- If I had heart bypass surgery one year ago, am I able to buy life insurance today?
- I had a heart attack, can I still purchase life insurance?
- I am diabetic, can I purchase life insurance?
- I have high blood pressure, can I purchase life insurance coverage?
- I have cancer, can I purchase life insurance coverage?
- Are the big name, well-known life insurance companies the most expensive?
- What is the largest amount of life insurance I can buy?
- Should I purchase my life insurance coverage from different companies and spread the risk?
- Can life insurance premiums be tax deductible?
- Can my business pay for life insurance on my life?
- How can life insurance save me money on estate taxes?
Life Insurance Answers
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Why does a $100,000 ten year level term policy cost less than a $50,000 five year level term policy?
There are two reasons. Many more companies offer $100,000 policies so there is more price competition for policies of this size. Very few top rated companies offer term policies as low as $50,000. Most five year level term policies currently available do not offer a guaranteed level premium after year five. These policies typically have annually increasing premiums beginning in year six making the policy very costly if kept for ten years. A ten year level premium policy will be the best buy if you need life insurance for ten years.
For example, assume a male age 35, non-smoker, in good health, living in Florida, compares the lowest premium $50,000 five year term life insurance plan to the lowest priced $100,000 ten year term plan. He wants coverage for a total of ten years. Is he better off buying the $100,000 ten year plan or the $50,000 five year plan? Looking only at guaranteed term life insurance rates, his total premium for the ten year period is $1,924 for $50,000 of life insurance. His premium for the $50,000 policy for years 1-5 will be $68 a year. However future premiums are: $279 year 6, $297 year 7, $315 year 8, $336 year 9, and $357 year ten. The $100,000 ten year policy has an annual premium each year of $72, making his total cost over ten years $720 for $100,000 of life insurance. In most cases, you may as well buy the $100,000 policy.
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Are there level premium term policies that give a guarantee for longer than twenty years?
Recently, twenty-five and thirty year level guaranteed premium term life insurance policies have been appearing in the industry from top-rated life insurance companies. These longer level premium policies enable you to get long-term guarantees without paying the higher premiums of permanent policies, whole life or universal.
Refer to LifeQuote's free quoting system or call LifeQuote (800) 521-7873 for your 25 & 30 year level premium term life insurance rates.
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Can consolidating Life Insurance coverages save me money?
Suppose you have $250,000 of twenty year level term. You now need $500,000 of coverage for the next twenty years. Are you better of buying one new $500,000 policy? Many companies offer discounts on larger policies. Having only one policy instead of two also saves on administrative fees that are a part of every insurance premium. It is worth comparing a new $500,000 policy to adding a second $250,000 policy to your present one. Please see "more information" for important information regarding replacement of existing policies because there are a number of factors that must be considered.
[ For more information ] Should you consolidate your Life Insurance coverage by replacing an existing smaller Life Insurance policy? The answer depends on a number of things.
- First, how many years has it been since you bought the old Life Insurance policy? Life Insurance Premiums for a 40 year old are higher than for a 30 year old for the same amount of coverage.
- How much longer will the level premium guarantee on your present term life insurance policy last? If the old life insurance policy will have premium increases in a few years, it may be worth changing your life insurance policy now.
- Has your health changed since you bought the old life insurance policy?
- Have you quit smoking since you bought the old Life Insurance policy?
- Whenever considering the replacement of an existing life insurance policy, you should carefully compare all aspects of the proposed change. Each state provides a comparison disclosure form for anyone replacing existing life insurance. Please read this disclosure carefully. NEVER CANCEL EXISTING LIFE INSURANCE UNTIL YOU HAVE OBTAINED REPLACEMENT LIFE INSURANCE.
- How can I save money by consolidating Life Insurance? Most life insurance premiums include a policy fee on top of the life insurance premium rate per thousand for death benefit coverage. Life Insurance Policy fees generally average anywhere from $25 to $50 on term Insurance policies, or even more on Whole Life Insurance and Universal Life Insurance Policies. Having two policies means you are paying two policy fees. Also, many Life Insurance Companies offer a lower rate per thousand for a higher death benefit, which is called rate banding. For example, many companies offer a lower rate per thousand for coverage at $500,000 than at $250,000, similar to a quantity discount. Consumers should be aware that replacing an existing policy may entail other factors besides a premium comparison. Exercise caution when considering replacement and always be sure and read carefully the comparative information that your state requires before replacing a policy.
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Does it cost more to split term life insurance coverage between two companies?
Yes. It is very often more expensive to buy two smaller term Insurance Policies from different term life insurance companies. If you buy two separate Term Life policies, you will be paying two policy administration fees and you may miss out on a volume discount that many term insurance companies offer for larger life insurance policy amounts.
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Can reducing my own level death benefit term policy be less expensive than a decreasing mortgage term or credit life insurance policy?
Yes. Mortgage decreasing term or credit life insurance policies are often expensive. As an alternative, you can buy a very competitive level term policy and reduce the coverage amount of your term policy on any policy anniversary (subject-to the life insurance company's guidelines); and reduce your term insurance premium accordingly. Note: you can only decrease your term insurance coverage amount to the product's minimum death benefit limit. Reducing term insurance coverage can be done simply by using a term policy change form.
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How can I use my death benefit while I am still living?
Some life insurance companies have made available a Living Benefit, which is an advance of funds from your Life Insurance Policy, that would otherwise be payable at the your death. The Living Benefit provision provides funds from your life insurance policy if you are terminally ill (each life insurance policy has specific terms and definitions) Some policies also provide this benefit if you have been permanently confined to a Nursing Home. Specific Death Benefit amounts as well as Insurance Policy terms and conditions vary by Life insurance company. Living benefits paid under these riders reduce the amount of benefits payable to your Beneficiary upon your death. Under this benefit, you may get less than the original amount, but sometimes this benefit will be a last resort to cover the cost of your care. With most companies this provision is automatically attached as a rider to your policy at no extra charge.
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Can I own life insurance on my parents or other family members?
Generally, you can own life insurance on your parents, other family members, or perhaps even friends provided you have an "insurable interest". Insurable interest means that you would suffer a financial loss in the event the person being insured dies. Insurance companies look for an insurable interest when considering an application for life insurance made by someone other than the person with the life insurance policy.
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Can I own life insurance on my business partner?
Yes, in many businesses, the partners will own policies on each other so that there will be funds for the surviving partner to buy-out the deceased partner's business interests from his or her family.
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Can my business own life insurance on me or on my key employees?
Yes, businesses often purchase life insurance on key employees (including the business owner) to protect the business against financial loss if the key employee dies.
If you are a business owner, you should consider purchasing a policy on your key employees so that if a death occurs, your business will be able to find a replacement and recover some of the lost income that the employee would have generated for your business.
In other cases, the business may buy life insurance on each partner to provide for the continuation of the business if a partner dies. In each of these situations, the insurance company will consider if there is a legitimate insurable interest before issuing a policy.
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Do any life insurance companies offer non-smoker life insurance rates to cigarette smokers?
As an incentive to quit smoking, certain top-rated life insurance companies offer non-smoker rates to cigarette smokers for a period ranging from two to four years depending on the company. If you quit during that period (and submit certain requirements as requested by the insurance company) you can continue at the lower non-smoker rates, if not the rate will increase to the smoker rates. Other companies have special rates for occasional cigarette smokers. Alternatively, if you are in good health but use tobacco, you may qualify for preferred smoker rates. Sometimes these rates are actually lower than the special tobacco policies. It is worth comparing both options.Call Life Quote at 800-521-7873 for your special smoker rates.
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If I quit smoking, how long do I have to wait to get non-smoker's life insurance rates?
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Can cigar or pipe smokers get non-smoker life insurance rates?
Most life insurance companies consider cigar or pipe smoking the same as cigarette smoking, with premium rates 30 to 50% higher than non-smoker rates. A few of the top-rated life insurance companies offer a lower rate to cigar or pipe smokers. A few companies offer special life insurance rates for smokeless tobacco users. Specific terms and conditions vary by insurance company. Refer to our free life insurance quote system or call LifeQuote at (800) 521-7873 to get your cigar or pipe smoking, or smokeless tobacco rates.
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Are there super discounts available to people in better than average health?
Yes, people in excellent health, with good family history, and who meet other underwriting criteria may be offered a policy at a significantly lower rate. These super discounts are only available if you qualify based on the insurance company's specific criteria. The guidelines for qualification for the super preferred rate class vary by company. The super preferred plus class is more difficult to qualify for than the regular preferred. Check with LifeQuote at 1-800-521-7873 to find out if you have a chance to qualify for the discounted, super preferred rates.
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Am I too old to get life insurance? Do I need life insurance if I am over age 65,70, or even 80 or more?
Many companies offer life insurance to people age 80 and beyond. For older people, life insurance can be a less expensive and useful tool for estate planning and wealth transfer. If you are married, and need coverage for your estate plan, a joint second to die policy with your spouse may have merit. You should obtain professional advice to see if it is right for you. You can get competitive quotes for life insurance coverage at any age. These cases require special handling, call LifeQuote at (800) 521-7873 and speak with one of our expert product consultants.
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Should I apply with more than one life insurance company for the same coverage?
LifeQuote wants to find you the best product for your particular situation. In special circumstances where there are special medical or other underwriting issues, considering more than one company may be helpful. Keep in mind the individual underwriting requirements of each company must be met.
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If I had heart bypass surgery one year ago, am I able to buy life insurance today?
Provided you are taking care of yourself and seeing a doctor regularly, many life insurance companies offer their products at competitive rates, as little as one year after bypass surgery. Contact LifeQuote and we will obtain tentative quotes from our most competitive companies for your special needs.
The procedure to obtain a tentative quote is simple. No exam is required for an initial quote; medical records and information can be sent confidentially from your doctor to the insurance companies, where LifeQuote can obtain tentative quotes for you. Surprisingly, the best offers often come from the biggest and best-known insurance companies. These cases require special handling, call LifeQuote direct at (800) 521-7873.
The final decision to offer coverage is from the life insurance company,
based upon completion of your medical requirements.
Underwriting requirements vary by company.
A preliminary quote is not a guarantee or offer of coverage.
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I had a heart attack, can I still purchase life insurance?
Provided you are taking care of yourself and seeing a doctor regularly, many life insurance companies offer their products at competitive rates. Contact LifeQuote and we will obtain tentative quotes from the most competitive companies for your special needs.
The procedure to obtain a tentative life insurance quote is simple. No exam is required for an initial quote; medical records and information can be sent confidentially from your doctor to the insurance companies, where LifeQuote can obtain tentative life insurance quotes from various companies. Surprisingly, the best offers often come from the biggest and best-known life insurance companies. These cases require special handling, call LifeQuote direct at 1-800-521-7873.
The final decision to offer coverage is from the life insurance company,
based upon completion of your medical requirements.
Underwriting requirements vary by company.
A preliminary quote is not a guarantee or offer of coverage.
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I am diabetic, can I purchase life insurance?
Many Diabetics, if taking care of themselves, can get competitive rates. Contact LifeQuote and we will obtain tentative life insurance quotes from the most competitive companies for your special needs.
The procedure to obtain a tentative life insurance quote is simple. No exam is required for an initial quote; medical records and information can be sent confidentially from your doctor to the life insurance companies, where LifeQuote can obtain tentative quotes from various companies. Surprisingly, the best offers often come from the biggest and best-known life insurance companies. These cases require special handling, call LifeQuote direct at 1-800-521-7873.
The final decision to offer coverage is from the life insurance company,
based upon completion of your medical requirements.
Underwriting requirements vary by company.
A preliminary quote is not a guarantee or offer of coverage.
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I have high blood pressure, can I purchase life insurance coverage?
Provided you are taking care of yourself, have controlled your blood pressure, and are seeing a doctor regularly, many life insurance companies offer their products at competitive rates. If your blood pressure is under control with medication, most companies will offer even more favorable rates. Contact LifeQuote and we will obtain tentative quotes from the most competitive companies for your special needs.
The procedure to obtain a tentative life insurance quote is simple. No exam is required for an initial quote; medical records and information can be sent confidentially from your doctor to the life insurance companies, where LifeQuote can obtain tentative quotes from various companies. Surprisingly, the best offers often come from the biggest and best-known life insurance companies. These cases require special handling, call LifeQuote direct at 1-800-521-7873.
The final decision to offer coverage is from the life insurance company,
based upon completion of your medical requirements.
Underwriting requirements vary by company.
A preliminary quote is not a guarantee or offer of coverage.
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I have cancer, can I purchase life insurance coverage?
Many forms of cancer can be treated. If you have been under regular medical care, and have been cancer free, you may be able to obtain coverage. Insurance companies have varying guidelines for different types of cancer. Contact LifeQuote and we will obtain tentative quotes from the most competitive companies for your special needs.
The procedure to obtain a tentative life insurance quote is simple. No exam is required for an initial quote; medical records and information can be sent confidentially from your doctor to the life insurance companies, where LifeQuote can obtain tentative quotes from various companies. Surprisingly, the best offers often come from the biggest and best-known life insurance companies. These cases require special handling, call LifeQuote direct at 1-800-521-7873.
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Are the big name, well-known life insurance companies the most expensive?
Often the biggest are the cheapest because they want to be competitive in the market place. Don't be fooled by assuming that the smaller or lower rated life insurance companies are cheaper. Check with LifeQuote at (800) 521-7873 for more details.
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What is the largest amount of life insurance I can buy?
There is no limit on the amount of coverage you can obtain, if there is an insurable need and you can meet the insurance company's financial qualifications. Each life insurance company has a maximum limit on the amount of coverage it will issue. For very large amounts, a composite of policies from a number of companies may be required. Keep in mind that you will have to meet each company's health and financial requirements. Let LifeQuote help you assemble a composite of life insurance companies that can collectively provide you with jumbo coverage amounts for large estate tax needs, large key man policies, large buy-sell agreements, large coverage's for high profile occupations (entertainers, professional athletes, etc.) and other needs.
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Should I purchase my life insurance coverage from different companies and spread the risk?
Some advisors feel that when applying for a large amount of coverage, distributing the risk among different top-rated companies can be very prudent.
It may make sense to purchase coverage from more than one company when you need coverage for different lengths of time. For example, you need $500,000 of total coverage for the first twenty years and only $250,000 thereafter. Purchasing a twenty year level term life insurance policy for $250,000 combined with a whole life or universal life policy for $250,000, may be less expensive than purchasing the entire $500,000 with whole life or universal life. No one company is the best for everything. The company offering you the most competitive term life insurance rates, most likely, will not have the best rates for whole life or universal. Call LifeQuote at (800) 521-7873 to talk with an expert product consultant.
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Can life insurance premiums be tax deductible?
If you are an owner and employee of a corporation, there may be tax advantages for the purchase of life insurance under certain circumstances. Special types of insurance are required. You should seek advice from your tax or legal advisor or have them contact LifeQuote at (800) 521-7873.
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Can my business pay for life insurance on my life?
Yes, but by doing so, there is not always an advantage. Each situation is different and the best arrangement for you and your business must be determined by your circumstances. If you are considering having your business pay for your life insurance, you should check with your tax or legal advisor or have them contact LifeQuote. Call LifeQuote at 1-800-521-7873 to discuss your corporate needs and to see how a program can work for your company.
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How can life insurance save me money on estate taxes?
If your family is faced with having to pay estate taxes, it is often cheaper to pay estate taxes using life insurance opposed to other means. If you are married, estate taxes often will be paid upon the second death. A special policy, joint second to die, covering both people and paying benefits when the last person dies is the least expensive plan. The savings over buying two separate permanent policies to achieve the same goal can exceed 50%.
Estate life insurance often requires special handling and the advice of your lawyer and/or accountant. Please call or have your tax advisor call LifeQuote at (800) 521-7873 for more information and your free customized quote.
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