AFFORDABLE TERM LIFE INSURANCE QUOTES

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Understanding Affordable Term Life Insurance


There are many commercials that pop up on television and radio promoting the value of getting an affordable term life insurance quotes. Now, most people have a clear understanding of what a term life insurance quote entails. However, they may be unaware what the concept of term life insurance centers on. For those that may have a number of questions regarding this form of coverage, the following is a brief overview of what it entails.


As with other forms of life insurance, term life insurance centers on offering a “death benefit.” That is, when the insured dies the beneficiaries will be paid a settlement amount based on the amount of coverage that the insured purchased. Again, this is standard with all life insurance policies. However, term life insurance is different in one respect. Specifically, term life insurance only provides coverage for a certain designated period of time. This timeframe is, of course, the term mentioned in the title of the coverage.


In short, the coverage is purchased for a specified term. When the term expires, the insured has the option of purchasing a new policy. In some instances, it may be the exact same policy at the same price. In other instances, it could be a new policy at an increased price or different terms. And, of course, the insured could also downgrade the policy for a lower premium. Really, this is the major benefit of purchasing a term life insurance policy. A person can save a lot of money on the purchase of a policy since the policies are being purchased in fixed terms.


This makes term life insurance perfect for those that may be on a proverbial budget. Anyone looking to make sure their family is properly covered in the advent of an emergency can take out a short term policy at a reasonable cost. That alone is a huge endorsement for term life insurance.

What to Expect During Your Term Life Insurance Exam

Once you have decided to purchase a life insurance policy, you may be required to undergo a medical exam. The reason most life insurance companies need these medical exams is to determine the premium to be charged to the policy holder. If your medical exam results indicate that you have a greater risk of dying at an early age, the insurance company will want to collect higher premiums early on in your life. However, if your exam results show that you are in good health, the company will not collect as much from you early on in the policy for the simple reason that you will be around longer and will continue to make premium payments.

Life insurance companies use two factors to judge how long a potential policyholder will live. These are Longevity Charts and Medical Exams and History. The mortality rates of people are the statistics found in longevity charts. They indicate to an insurance company, how many men, women, and children die at particular ages and help them determine the risk involved in accepting you as a policy holder. The second factor is your medical exam and history.

Generally, insurance medical exams are carried out by paramedicals. These are licensed health professionals and most often independent contractors, who are hired by the insurance company. They will come to your home or office to conduct the medical exam unless the insurance company will require additional tests then you may be referred to a clinic to complete your medical exam. The questions on a life insurance application are divided into two parts. Part I (or Part A) consists of questions that are usually completed by your agent in your presence, or online by you. Part II (or Part B) is the medical form completed by the paramedical. Once you submit your application for life insurance, your agent or the life insurance company will give the paramedical service all your information and the amount of insurance that you are applying for.

As part of your life insurance medical exam you will be asked about:

  • Your personal medical history
  • Your family's medical history
  • Contact details of your primary doctor
  • Information on your lifestyle habits. It is imperative here not to lie if you smoke, drink, or use recreational drugs. Your exercise regime is also important to your medical status
  • What and how much life insurance you are interested in purchasing

The following are the procedures that you can expect during your life insurance medical exam:

  • Weight and height measurement
  • Measurement of blood pressure and pulse
  • Blood work (to check on cholesterol, glucose, protein, and HIV)
  • Urinalysis (to check on protein, glucose, creatinine and cocaine)

Keep in mind that exams vary from insurance company to insurance company. If you are older or are applying for a high value policy, you might be required to undergo EKGs, treadmill tests or other assessments.

What is your insurance company looking for?
Basically, the insurance company needs to know what risk you pose to the company in terms of any health condition that could shorten your life. When the medical practitioner collects samples of blood and urine, they will be testing for HIV, cholesterol, liver or kidney disorder, diabetes, and other immune disorders. Urine samples will also be analyzed and screened for certain medications, cocaine and other drugs. If you plan to buy a large amount of life insurance, you might be required to submit a full blood profile as well.

The results of your medical exam are sent directly to the life insurer's office for the next process where the underwriter reviews the information. In case you want a copy as well, you can send a written request to the insurance company. The underwriter will decide your insurance rating which in turn determines your premium rate. If there are still questions regarding your health, more medical tests or information may be requested from you. If a medical problem is discovered, you may be offered a policy with a higher premium.

And in case you are unknowingly chronically or terminally ill, your application will be declined. In such situations, it would be better to look for a specialized high-risk carrier or a company that guaranteed issue life insurance. If your test results are normal and correlate with the original premium rate quoted to you, you policy will be processed accordingly.

If you end up declining the life insurance policy after your medical exam, remember that your test results might still be recorded in the Medical Information Bureau (MIB) Group's database. This is a clearinghouse of medical information, jointly owned by around 470 insurance companies that stores information for seven years after you apply for an insurance policy. So, if you plan to shop around, your medical information is remains available to a number of other companies as well. If you want to check your MIB file, or dispute any information in it, you can obtain a free report annually at www.mib.com.

About the Author:

About AccuQuote
:AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

Author: Denise
AFFORDABLE TERM LIFE INSURANCE QUOTES