Frequently Asked Questions

First, we are independent and objective. We are not owned, employed, or controlled by any term life insurance company. The information we provide is unbiased.

In the past, a term life insurance policy was generally purchased through an agent of a particular life insurance company. In order to compare more than a few companies, the consumer had to meet with several agents that sold term life insurance, face-to-face, and listen to lengthy, confusing, high-pressure sales presentations.

At AccuQuote, we provide free term life insurance quotes online. This allows our customers to make a well-informed choice among hundreds of term life insurance policies available. And, all of this is done in a matter of minutes.

No. The same term life insurance policy from XYZ Company in the same risk class will be the same price no matter where you buy it. Why? Because life insurance companies, not agents or brokers, set the pricing of the term life insurance policy. If you see the same term life insurance policy from another source with a price that doesn't match, you're probably looking at different rate classes (i.e. preferred vs. standard).

If you are quoted the same term life insurance policy but a different rate class from another term life insurance quote service, or agent, ask yourself if they obtained enough information from you to accurately estimate which rate class you are likely to receive. Did they ask you about your family history, your health, your height and weight, whether you take any medications, whether you use any tobacco (or how long ago you quit), whether you participate in any hazardous activities, or about your driving record? And, if so, have they really paid attention to the information you've provided?

Remember, you're not applying for a term life insurance "rate" but rather a term life insurance "policy." The life insurance company will determine which life insurance rate class you qualify for only after all underwriting information has been evaluated.

Unlike many of our competitors, we ask you to answer more questions about your health and lifestyle. Unless you are asked (and you answer) enough questions up-front, any term life insurance quote you receive will be meaningless, since the price may be different after the underwriting process is completed. At AccuQuote, we are very thorough because we know you don't want to be surprised later with a higher term life insurance rate.

The important thing to remember is that finding the most affordable term life insurance rate available in the marketplace for your age is the easiest thing you could ask us to do. "Quoting" and "delivering" are two different things! So, if you want an accurate and deliverable term life insurance quote, it's extremely important that you answer all questions on our free e-mail quote request form honestly, and with as much detail as possible.

In most cases, local agents sell only one or two types of term life insurance policies, which often time are not the lowest priced products available on the market. At AccuQuote, we can conduct a term life insurance comparison using by providing you with a term life insurance quote from our database which has thousands of policies available. Since we deal with hundreds of life insurance companies, we are able to find you the most affordable term life insurance.

In determining the most affordable term life insurance rate for you, we take into consideration your complete health and lifestyle profile in order to find you the best value. We consider not just premium rates, but also the financial strength/integrity of the term life insurance companies quoted, as well as important product features such as renewability privileges, conversion rights, available riders, and the actual availability of the products. Most agents that term sell term life insurance simply do not have the same resources we have at their fingertips, therefore it is difficult for an individual agent to offer exactly the same high-quality service as AccuQuote. More importantly, we are not owned or operated by any term life insurance company. Therefore we do not have any reason to push one term life insurance quote over another.

We commend ourselves of our service. Our company is made of real people. We've been in business since 1986 and have served tens of thousands of customers just like you. Take a look at what our customers have to say about us.

First, you're right, term life insurance rates have fallen in the past years. Many carriers' term life insurance rates have never been lower. In fact, life insurance rates have fallen approximately 50% since 1995! That's a big drop, and a big savings.

So, what has caused term life insurance rates to drop? Let's take a look:

• Term Life Insurance Medical Exams - Today, life insurance companies obtain more information and better information about you before they accept you at their lowest term life insurance rate. In the past, exams and blood tests were performed for only the larger face amounts and older ages. Now, virtually everyone must submit to a life insurance medical exam, including blood and urine tests.
• Term Life Insurance in the Digital Age - The age of computers and the Internet has made it possible for new term life insurance rates and plans to make it to the market faster than ever. The moment a new term life insurance rate is introduced, the whole world can know about it almost immediately by going on the Internet and getting a term life insurance quote online. Years ago, it would take months or years for agents to find out about new products. As a result of the quick dissemination of information each round of competition happens faster than in the past.
• Advances in Medical Care - It's now possible for people to live longer than ever before. This means that term life insurance companies don't have to pay the life insurance death benefits as soon. The savings have been passed on to the consumer in the form of lower rates.
• Stricter Health Criteria to Qualify for Term Life Insurance - These new lower term life insurance rates require stricter health criteria to qualify than ever before. Some companies demand a set of health and lifestyle requirements that only a small percentage (e.g. 5%) of the term life insurance applicants will meet.

Term life insurance rates are so low right now that if you own a term life insurance, you should compare your existing policy's rates, features, and guarantees to those currently available. Even if you bought your term life insurance policy as recently as 1 year ago, it's very likely that, if you're still healthy, you could find a new policy that will provide:

• the same death benefit, yet cost significantly less, or
• the same death benefit, won't cost any more, yet may give you a longer guaranteed rate, or
• more death benefit, and cost less, or
• more death benefit, cost less, and provide longer guarantees!

Since you have nothing to lose by requesting a FREE term life insurance quote form, why not call us at (800) 442-9899 to find out whether you can get more for your money?

There are a number of ways in which to evaluate the financial strength, performance, and integrity of a term life insurance company. At AccuQuote, we maintain a database of financial information on hundreds of companies that sell affordable term life insurance. We only monitor the term life insurance rates from insurance companies with a proven track record of financial strength, integrity, performance, and claims-paying ability. And, before providing you with a term life insurance quote, we require that the life insurance company have a rating of A, A+, or A++ by A. M. Best, the country's most recognized insurance company rating organization.

Third Party Services Measure Claims Paying Abilities
Other third party services, which measure life insurance companies' financial strength, claims paying ability, and other financial categories include:

• Standard and Poor's
• Moody's
• Fitch
• Weiss

All of these services assign "letter grades" to the various term life insurance companies. These letter grade ratings are not warranties of an insurer's current or future ability to meet its contractual obligation, but rather opinions based on the available facts about each life insurance company.

Let AccuQuote Help You Compare life Insurance Companies
We can help you compare life insurance companies simply by calling us at 1-800-442-9899. We'll provide you with a financial profile, which includes these "ratings", on every term life insurance policy we quote. We continually update these ratings in our database of several hundred term life insurance companies. Click here for more information about third-party ratings.

You need to understand that when comparing term life insurance rates, even if you're in excellent health, there is a good chance you won't qualify for the lowest term life insurance rate. In fact, only 5%-40% of all applicants get this "preferred-plus" term life insurance rate. Typically, about 60% can qualify for the regular "preferred" term life insurance rate. The rest fall into the "standard" category, or worse. Let's take a look at the criteria for each category.

• Preferred Term Life Insurance Rate - Although the qualifications for obtaining the 'preferred'; term life insurance rate vary between companies, generally you must be in excellent overall health. There can be no participation in any hazardous activities and there must be no history of drug or alcohol abuse.
• Preferred-Plus Term Life Insurance Rate - In order to qualify for the 'preferred-plus'; term life insurance rate, you cannot use tobacco in any form. You must have no history of drug or alcohol abuse, and you cannot engage in any hazardous activities. According to actuarial tables, these are the people who are likely to live the longest. Each life insurance company may have a different name for them but these term life insurance rates represent the lowest available premiums.
• Standard Term Life Insurance Rate - "Standard" risks refer to persons who have had some minor health impairments in their lifetime. Examples of someone that would qualify for a standard term life insurance rate would include persons who have cholesterol levels of over 260, or who are 50 pounds overweight.
• Substandard Term Life Insurance Rate - "Substandard" risks refer to persons who are having more than minor health problems. Term life insurance rates will be more due to the additional charge life insurance companies will add to their premiums depending on the risk factors involved.

At AccuQuote, we believe that it's in your best interest to get the facts up-front in order to minimize disappointment later. The specific criteria for these term life insurance rates differ widely among the various insurance companies, and it is not uncommon for an individual to be classified as "standard" at one company and "preferred" at another.

The key is finding the right company that will offer you the most affordable term life insurance rate. At AccuQuote, we constantly monitor each company's criteria so that we can assist you in finding a company that will have the most affordable term life insurance rate for YOU, based upon YOUR specific situation. We place thousands of term life insurance policies annually and, as a result, have the experience to know which insurance companies will likely be best for you.

Through our extensive research of the market, we have found that certain term life insurance companies treat smokers much more favorably than others. Just give us the details of your tobacco use by requesting a FREE smoker term life insurance quote online, or call us at 1-800-442-9899 and we'll find the right company for you.

At AccuQuote, we know which companies will do so and will recommend only those companies when appropriate. Get your free life insurance quote by calling us at 1-800-442-9899 and find out which company will offer you the most affordable term life insurance rate.

You've come to the right place for term life insurance
If your health is poor, or if you have been charged extra premiums or even declined for term life insurance, you've come to the right place. Why? Many people in this category simply assume that an affordable term life insurance policy is either not available for them. Perhaps you've applied somewhere else and been declined, or were offered a term life insurance policy with an outrageously high extra premium or even been told that it will be too "difficult" to get you a term life insurance policy.

Unless your agent understands the underwriting process for such specialized cases the odds are against you finding the right term life insurance policy. Many agents don't want to spend the extra time and effort it takes to find the most affordable term life insurance rate for an impaired-risk case. The fact is, it's a lot of extra work. Most "term life insurance quote services" focus their attention on quoting only the perfectly healthy cases. Unfortunately, the life insurance companies with the best term life insurance rates for healthy applicants are unlikely to be the companies you should be considering if you have health problems.

We'll shop the market for the most affordable term life insurance rate
We can't promise to find term life insurance coverage for you. However, we do have the experience to know which companies specialize in certain health impairments. Some clients may be offered "standard term life insurance rates" by one company, yet extremely high "substandard" premiums from another. We know which companies are most likely to provide you with the most affordable term life insurance rate. We can "shop" your condition with several of these companies in order to compare term life insurance rates.

If you think you are a substandard or an impaired risk, please indicate that on your term life insurance quote request form and we will contact you with more details.

Most families have coverage on both husband and wife. There are many financial pressures on a family after the loss of either parent. Beyond the obvious final expenses, the financial strain on a family after the loss of a spouse can be significant, even if the deceased spouse wasn't working.

Often the surviving spouse will take time off work, or change jobs in order to spend more time with the children. Coverage for children is also available to cover final expenses and/or to guarantee insurability for the child's future.

There are several reasons why people would want to buy a permanent or term life insurance policy on a child or grand child.

Guarantee the ability to obtain affordable life insurance in the future
First, if permanent life insurance (i.e. whole life insurance or universal life insurance) is purchased at a very young age the insurance company will often guarantee the child the right to buy more life insurance later in their life at regular intervals without providing any evidence of insurability. In other words, if you buy a little now, you are guaranteeing your child's right to buy more life insurance with no medical exam and without having to answer any health questions. If the child later becomes ill, or uninsurable, these privileges could be the only means to obtain the coverage needed when the child becomes an adult.

Example: One major company offers a rider to a certain whole life insurance policy which allows the insured to increase their life insurance coverage by purchasing up to $100,000 on each of 9 option dates between the insured's age 22 and 46, for a total of $900,000 of additional guaranteed future insurability! If life insurance waiver of premium is included and the insured is totally disabled on an option date, the options can still be exercised. As long as the total disability continues, the insurance company will pay for the premium on the policies!

If you, or anyone you know, have ever been declined for a term life insurance policy or you could not find affordable life insurance as a result of a health condition, you will be able to appreciate the value of the privilege to purchase a life insurance policy, at standard rates, without any medical exams, and without having to answer any health questions!

Obtain affordable life insurance rates
Second, permanent life insurance rates are significantly lower for children, than for adults. Although you'll be paying for a longer period of time, the earlier you start a plan of permanent life insurance the lower the total of the payments will be over one's lifetime.

In addition, most children are healthy which means permanent and term life insurance is generally easy to get and doesn't usually require any medical exam.

Build cash value for the future
Third, if permanent life insurance policies are started early, there is more time to build cash values, which can be used to help fund college expenses, or provide cash for other purposes, including retirement or a down payment on a house, etc.

Compare term life insurance vs. whole life insurance for children
Some companies offer term life insurance for children. Many term life insurance policies include a conversion privilege, which allows the insured to exchange the coverage for permanent life insurance. Most life insurance companies, however, do not sell term life insurance on children but do offer attractive permanent life insurance plans on children.

In summary, there are many compelling reasons to consider buying a permanent or term life insurance policy on a child. For more details, or a custom illustration based on your specific situation and objectives, give us a call at 1-800-442-9899, or get a free term life insurance quote online.

Shopping for a more affordable term life insurance policy is a good idea, especially if you bought your policy more than a few years ago.  However, be careful. Before replacing an existing term life insurance policy make sure you closely compare your existing term life insurance policy with the one you’re thinking of replacing it with.  Consider the following categories:

• Price
• Guarantee periods
• Convertibility
• Financial strength of the insurance companies
• Available riders, if applicable

Understand that when you buy a new term life insurance policy, a new contestability period starts (usually for the first two years). You should also be aware that suicide is not covered under a new contract (usually for the first two years).

Most importantly, DO NOT CANCEL any existing coverage until the new term life insurance policy has been approved, paid for, and delivered to you. Before an existing policy is replaced, it should always be clearly determined that such a decision is in your best interest.

Get a free term life insurance quote today.

Each term life insurance policy, if renewable, has a contractually guaranteed maximum life insurance renewal premium that can be illustrated, and which is shown in your policy. This amount is the most you'll have to pay to renew the term life insurance policy.

Most companies also illustrate the current term life insurance renewal rates that represent the expected future renewal rates, which are lower than the maximum renewal rates. These term life insurance rates are not guaranteed, and can be higher or lower than expected, but never higher than the guaranteed maximum renewal premium.

There is also a concept called "re-entry." After your initial guarantee period ends you can re-apply for new term life insurance coverage. And, if you qualify, you can begin a new period of guaranteed rates (in effect, a new policy), which will generally cost less than your current or maximum renewal rates. This process is referred to as "re-entering," or "re-entry." Since your future good health is not guaranteed, the ability to "re-enter" is not guaranteed. Although re-entry premiums are often attractive, to illustrate such rates without showing the current and maximum renewal rates and in the absence of a complete explanation (as if to imply that they are the same as renewal premiums) is universally condemned as unethical and deceptive.

If you select a short-term policy with the expectation of using the re-entry feature down the road -- then fail to qualify for re-entry -- you'll face outrageous, unaffordable term life insurance rates thereafter. You'll have only two choices: pay the increased cost or lose your coverage.

Don't be shortsighted. Don't make the mistake of assuming that you'll be able to qualify for re-entry 10-15 years down the road. Remember, there is no guarantee of good health tomorrow. Don't be tempted to purchase a term policy with a lesser guaranteed rate period than you need, simply because it costs less. Look for a policy with guaranteed rates for as long as you need it to last. If you determine that you need 20 years of coverage, then buy a 20-year guaranteed level premium policy. It's that simple. Doing it any other way could come back to haunt you later. Whatever small savings you'll gain under the re-entry scenario isn't worth the extra risk to you and your family. Be smart. Don't risk your family's financial future. Buy a rate guarantee for the full period you need.

For a very insightfully written article on the issue of re-entry read "Re-entry Illustrations Will Haunt Industry."**

**'Re-entry Illustrations Will Haunt Industry' was reprinted with permission from the August 1995 issue of "Bests Review".

No. Your policy will never be cancelled because of a change in your health, and you will not be asked to provide evidence of good health in order to renew your policy each year.

However, YOU have the right to cancel your policy at anytime for any reason.

Most term life insurance policies offer an optional feature called "waiver of premium". This typically states that in the event you become totally disabled for a period of six months or longer, the insurance company will pay your term life insurance premium until you are no longer disabled. This feature is optional (available at an extra cost) and must be chosen at the time of your term life insurance application.

Generally, we handle the entire term life insurance application process right over the phone. Our service representatives will help you find the most affordable term life insurance policy available to you.  In order to do this, they will ask you a series of health and life style questions in order to do a complete term life insurance comparison for you. Once a comparison and analysis is done, our representatives will help you fill out the application right over the phone.  Then, the completed forms are sent to you for review and signature.  It’s that simple!  To get started call 1-800-442-9899

No, it will not cost you anything to apply for a term life insurance policy with AccuQuote. The life insurance company pays for all of the underwriting expenses. You are under no obligation. Your only commitment is your time to take the medical exam.

The reality is if you’re thinking about obtaining a term life insurance policy, you probably need it now. In fact, statistics show that most people don’t think about a life insurance policy until only after a major life event such as welcoming a new addition to the family.

Remitting the first premium along with your term life insurance application will provide temporary conditional coverage during the term life insurance application/underwriting process. We strongly encourage you to obtain this temporary coverage, especially if someone is currently financially dependent on you (i.e. your spouse, children, etc.). It is, however, not required.

Unfortunately, we have experienced situations where our clients have applied for a term life insurance policy and died before it was issued. If money is not remitted with the application, benefits cannot be paid if an untimely death occurs during the term life insurance underwriting process. We take the issue of coverage very seriously and seek to protect our clients as soon as possible.

Remember, you are guaranteed a full refund for up to 10 days after the term life insurance policy is delivered to you, so there is no risk in submitting money with an application. The real risk may be not submitting money.

In most cases a medical exam is required in order to qualify for a term life insurance policy. It will be done at the expense of the insurance company, at a time and place convenient for you -- usually right in your home.

The life insurance medical exam is usually conducted by a licensed paramedic or medical doctor, and generally involves a blood test, urine specimen, blood pressure reading, height and weight measurement, sometimes an EKG, and a series of questions about your health history. The whole process takes about 20-30 minutes.

Be sure to learn about ways to prepare for your term life insurance medical exam that can increase your chances of obtaining a more affordable term life insurance rate.

At this time, the term life insurance company will begin to evaluate your case. This evaluation is called "underwriting." The answers to the questions on your term life insurance application, along with the results of your term life insurance medical exam, are initially reviewed by a life insurance "underwriter".

The term life insurance underwriting process generally takes 3-8 weeks depending on the amount of information, which the company must gather in order to make their decision.

Once all required information has been received, the life insurance company will make their decision regarding whether, and at what rate, you qualify for a term life insurance policy.

Your coverage does not begin until your policy is approved and your first premium has been paid. Most companies provide some temporary conditional coverage during the application process (assuming certain conditions are met). This temporary coverage is limited in time and amount. The availability, amount and conditions are described in the application and vary from company to company.

Important! If you are replacing existing coverage, you should never drop your existing coverage until your new policy has been approved, and your first premium has been paid.

If you find our information valuable, we hope you'll choose to buy your insurance through us. If you do, we are paid by the insurance company.

Yes. If at any time during the application process you change your mind for any reason whatsoever, you will receive a full refund, no questions asked. This guarantee continues until ten full days after your policy is delivered to you

You must have your green card and have been a permanent resident for at least a year in order for most life insurance companies to provide you with coverage. We cannot provide life insurance quotes or coverage for temporary residents, including anyone with a work permit or visa, permanent residents without their green card, or green card applicants who have not yet received their green card.

The death of a loved one is a difficult subject for almost everyone. We have prepared a very useful checklist of things that need to be done when someone dies, and we hope that you will take the time to read through it now so that if the time comes you will be more prepared. You may also wish to print the page and place it with your important papers for future reference.

Yes – there is a definite advance to submitting money with your term life insurance application. Many people don't realize that your term life insurance policy will not be effective until the first premium has been paid.  It's unfortunate, but we have seen many untimely deaths happen when people were in the midst of the term life insurance application process.

Most companies will provide some temporary conditional term life insurance coverage during the application process if certain conditions are met and the first premium is paid. A full refund during the application process is always your choice. Since there is absolutely no risk to you by doing this when the life insurance company allows, making that first payment with your term life insurance application will get your loved ones protected sooner. Get started today by getting your free term life insurance quote online.

Most insurance carriers offer several fractional premium modes, including all of the above. The charges for each fractional mode vary by insurance company and, unfortunately, the companies are not required to disclose the effective APR.

AccuQuote strongly believes that carriers SHOULD disclose not only the APR, but also the annual additional costs of these fractional modes. To make things easy, we provide an easy-to-use APR calculator. APR calculator for fractional premium modes. Simply plug in the numbers and you'll have the information you need to intelligently determine whether the additional cost of paying fractionally (monthly, quarterly, or semiannually) makes sense for you.