Frequently Asked Life Insurance Questions

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C |  
What is the difference between term and permanent insurance?

Term insurance is purchased for a certain period of time. You pay your premium over the time covered. If during the policy death should occur, the benefit (face amount of the policy) is paid to your beneficiaries. If at the end of the policy you are still alive generally no benefits are paid. A new product called Return Of Premium term life insurance is becoming very popular.  Permanent life insurance allows you to build 'cash value' throughout the life of your policy. There are several types of permanent life insurance which you should become familiar with before deciding which is best for your objectives. Learn more about the types of life insurance.

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D |
How much life insurance do I need?
Life insurance is purchased to replace income, cover all expenses and all debt, pay for final expenses, cover estate taxes and to create an estate at the time of death. The inflation rate should always be included in your calculations of need; otherwise funding for death that may occur 15 years from now will be 50% or more under estimated. Start to determine your need by going to our life insurance needs calculator.

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E |
How do I request a life insurance application?

There are two ways you can begin the life insurance application process. You may want to begin by running a life insurance quote. A request for an application can be found on the quote results page. The second way is to request an application by completing our contact us form or one of our impaired risk forms.

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F |
Is a Medical Exam is required?

An exam is generally required in the application process for life insurance. A licensed paramedical will complete the exam at your home or another convenient location. The exam includes a blood and urine specimen, blood pressure reading, height and weight measurements and also a few health history questions.  It takes about 15 to 20 minutes and  is paid for by the insurance company.

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G |
When does coverage begin?

Coverage begins once the policy has been issued and all of the delivery requirements have been returned and accepted by the insuring company. Temporary coverage may be received while the policy is being underwritten. A conditional receipt can be issued for this during the application process.

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H |
When does my first premium payment start?

The first premium payment should be made the application. When this is done, you will have conditional coverage during the time it takes for the policy to be underwritten and issued.

 

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I |
What are company ratings about?

All insurance companies are rated by different independent financial rating services. They are A.M. Best, Standard & Poor's, Fitch and Moody's. The insurance companies are evaluated based on their overall financial strength and liquidity and are assigned ratings. Look at our rating descriptions and learn more.

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J |
How do I determine my health class for premium calculation?
Life insurance companies use several different factors in order to determine a person's health class. These factors can include personal medical history, family medical history, financial strength, and hazardous avocations and/or occupations. Also, guideline may differ by company.

GUIDELINES	Preferred Plus	Preferred	Regular/Standard
Family	No cancer or cardiovascular death of either parent before age 60.	No cancer or cardiovascular death of either parent before age 60.	No more than 1 cancer or cardiovascular death of parents before age 60.
Blood Pressure	140/85	150/90	155/95
Cholesterol Levels	Under 210, HDL: Less than 5.0	Under 240, HDL: Less than 6.5	Under 280, HDL: Less than 8.0
Health History	No history of major health conditions, such as, cancer, diabetes, heart disease.	No history of major health conditions, such as, cancer, diabetes, heart disease.	Some major health conditions allowed.
Driving History	No more than 2 moving violations in the past 3 years. No record of DUI or reckless driving.	No more than 2 moving violations in the past 3 years. No record of DUI or reckless driving in the past 5 years.	No more than 2 moving violations in the past 3 years. No record of DUI or reckless driving in the past 2 years.
Tobacco	No use of nicotine products in past 3 years.	No use of nicotine products in past 3 years, also preferred smoker rates available.	No use of nicotine products in past 1 year, also standard smoker rates available.
Substance/Alcohol Abuse	No history of alcohol or substance abuse.	No history of alcohol or substance abuse.	No alcohol or substance abuse in the past 7 years.
Aviation	available with additional rider.	available with additional rider.	available with additional rider.

 

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K |
What if I smoke cigarettes or use other forms of tobacco?

In order to qualify for lower non-smoker rates, most insurance companies require that an individual be a non-smoker for at least one year.  Insurance companies view other tobacco products like cigars, pipes and chewing tobacco in the same rating as cigarettes; however, Term Life America works with companies that will allow pipe, cigar and chewers to qualify as non-smokers. U.S. Financial is one such company.

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L |
Can my policy be cancelled?

Basically no. Once a policy is issued, it cannot be canceled by the insurance company. If your health changes and you continue to make the required premium payments the policy will stay in force. 

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M |
Is there a money refund guarantee?

Yes. you can receive a full refund during you ten day right to review clause after the policy has been issued and delivered.

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N |
What if I already have a life insurance policy, should I cancel and start over or add a new policy?

The most important thing to remember is to not cancel any existing coverage until the new policy has been approved, delivered, and put in force. Compare the your current  policy to the one you want to purchase by comparing price, guarantee periods, convertibility, financial strength of the insurance companies. When beginning a new policy a new contestability period and suicide period will start, and usually lasts for the first two years of the new policy.

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