Buyer Beware! Policy selection is more complicated than grabbing what looks like the best rate. Finding your "best buy" involves making sure both the policy and the price are right. Keep the following information in mind while selecting your term policy.

Beware of Simple Quotes! Despite popular claims life insurance is not a “commodity”. There are important differences between products and premium rate classes. Web sites and agents that ask only a few questions often quote unrealistically low prices. A practice which can lead to disappointment and wasted time for the buyer.

Don't Rush The Process! Over 1,700 companies are authorized to issue term life insurance. Most have more than one product and most products have multiple premium rate classes. Additionally, there are no common criteria between the rate classes of different companies. An insured might be "Preferred" with one carrier and "Select" with another. Still another may offer their "Best" category to the same applicant.

The secret to finding the “best buy” is building an accurate “Insurance Risk Profile”. Our search engine uses this Profile to find the lowest price for each company and product. The optional health and lifestyle questions on the input form helps the computer build your “Insurance Risk Profile”.

Our system guarantees you the lowest possible cost, because it uses an exclusive search method. Most search engines look for matches, a technique that can easily skip over bargain prices. By contract, our engine compares all policies that are not excluded for some reason. Starting at the best price for each product, the search engine methodically works its way upward until it finds the cheapest premium that does not reject your "Insurance Risk Profile”. This method makes it impossible to miss the cheapest price for every product.

Our system takes a little longer. You have to answer a few more questions and the search engine has to work a little harder, but the job gets done right!

Compare Conversion Privileges! Conversion privileges are like the iceberg was to the Titanic. They are the hidden dangers that can turn a "best buy" into a financial nightmare. The “Conversion Clause” in a term policy gives the policy owner the right to exchange the term policy for a permanent one. The more liberal these provisions, the more protection they provide against the unforeseen.

For example, if you purchase a 10-year level term and 9 years from now you suffer a massive heart attack, you will probably not be able to purchase new life insurance. You will be stuck with your current policy and the premiums will begin rising dramatically every year. Eventually you will not be able to afford to keep the coverage and will be forced to let it lapse.

The conversion option gives you an alternative. It allows you to exchange your term policy for a permanent one that carriers the same premium rate class as the original term policy. The new policy will be issued at your attained age, but it will be priced at the same rate class as your term policy.

There are two major considerations when comparing conversion rights: the length of the conversion period and the quality of the conversion product. The longer the time period during which you can convert, the better the policy. The quality of the permanent product that will replace your term policy is harder to compare. Look for policies that do not restrict your conversion rights to specific policies or product types. Since any conversion will take place at a later date, a policyholder is entirely dependent on the future marketing plans of the insurance company. A quality line of current products is your best indictor of which companies will have a good conversion product available at some unknown future date.

If you want to see the conversion provisions for any of our search results, simply click for additional product information on the quote page.

Check Financial Ratings! Unlike many other types of financial institutions, deposits to or benefits from a life insurance company are guaranteed only by the company itself. Life insurance companies are regulated by the states in which they do business. No branch or agency of the Federal government regulates or insures insurance companies.

This makes it especially important for consumers to exercise caution while selecting their carriers. Because life insurance companies are one of the most complex businesses to analyze, it is common to rely on independent third party rating services to help judge the relative financial strengths of the competing companies. You will find information on the financial ratings of each of our companies prominently displayed in the comparison quotes. Click Here for additional information on financial ratings)

All Term Insurance Is Temporary! Term insurance has no cash value and covers you only for the stated period. Even though most level term plans are renewable to age 95 or more, the premiums required to continue the policy beyond the level period quickly become unaffordable to most buyers. The only way to collect anything from term insurance is to die.

Term insurance is the cheapest way to provide life insurance protection for a short to intermediate period of time. However, its future flexibility is extremely limited and it long term cost is much more expensive than other life insurance options.

Ignore Re-entry Options! A number of Term Policies allow the policyholder to “Re-enter” a new level term period at some point in the future provided that the insured undergoes a new underwriting process, including a medical exam. In other words, they will give you new rates if you can prove you can qualify for them. Big deal! If you can qualify for new life insurance, you can get it from any life insurance company. Re-entry options sound great, but don’t base your buying decision on them.

Double Check The Guarantees! Term rates come in two varieties: guaranteed and projected. Some level term products only guarantee their premiums for a portion of the level period. For example a 15-year level term may be projected to be level for 15 years, but only be guaranteed for 5 years. The remaining period is only "assumed" to be level.

It is cheaper for the insurance company to issue a shorter guarantee, than a longer one. Therefore, many projected policies show up on quote searches as the cheapest price. Unless they are clearly marked, it is easy to mistake these policies for those with full guarantee periods.

Judging from past industry performance, it is reasonable to expect that many carriers will be able to sustain their "projected" level rates for their entire period. In other words, their "projected" policies will perform exactly like their guaranteed counterparts except at a lower price. It is also reasonable to assume that a few companies will not be able to meet their projections and will be forced to raise premiums before the end of the initial level period.

We are not recommending that you ignore these "projected" policies. You might find bargains there. We do however, want to make sure you know the difference and understand that a "projected" policy is very different from a guaranteed one. Our quote comparison clearly displays the guarantee period for each product quoted. Additional information on each product is available by clicking the quote page.

Look For Pro-Active Processing The majority of Internet Term services just blindly pass your application along to the carrier you have selected. If there is a problem with your application or you have inadvertently selected a carrier that is not right for your situation, you will not know it until the company requests additional information or notifies you of a price increase.

Our pro-active service is your first line of defense. We check your application thoroughly for complete answers and to make sure the carrier and the policy you have selected is truly your “best buy”. If there is a problem or a miss-match, we catch it early and contact you with recommendations. This "process-level" underwriting is one additional safe guard in making sure the policy you get is the "best buy" and the "best fit".

You May Have Two Insurance Ages! The rates for most term life insurance products are based on nearest age, but a companies use actual age. Therefore, beware of quote engine that ask your age, not your birth date. Some of the rates maybe too high and you will not get a valid comparison. If it has been more than 6 months since your last birthday, you might be able to find a bargain price from a company that uses actual age.

You Cannot Get A Discount By Avoiding The Agent Many Internet term sites like to give the impression that you do not need an agent and that you can save money by buying direct. This is pure marketing hype! The laws in every state require a properly licensed agent to be involved when you purchase life insurance. What these sites are really saying is that you can’t talk to an agent. That may be exactly what you want and if it is, you are free to use our on-line services and never speak to, or here from, an agent.

However, if you have questions or if things are not going right, we have experienced professional agents available to answer your questions and find cost effective solutions to your insurance problems.

Don't Be Afraid To Ask Questions! Some insurance web sites are set-up only for automation. That's fine if you know your needs and want the ease of on-line purchasing. However, when you have questions an experienced agent is usually the best source for meaningful answers. If you don't understand something, check our knowledge base or call and ask a professional. Life insurance is a special transaction, it involves the security of those you care most about. It has to protect them financially when you cannot. It is one purchase you want to get exactly right.

Be Careful Canceling Old Coverage! Never, never, never cancel existing coverage until the replacing policy has been delivered and paid. In a attempt to save money, many people will cancel their old policy when they apply for a new one. This is a dangerous practice and can potentially leave your family without life insurance coverage. The new policy application process involves blood tests, urine tests and other medical measurements. It also often requires a review of your medical records. The results of any of these activities can cause the life insurance company to raise the price that you expect.

Even if you send money with your application and sign a conditional receipt, the company has the right to refuse coverage or change the price at any time before the policy is issued and accepted. To protect yourself, do not cancel any other coverage until you have the policy in your hand and you have signed all delivery documents and paid for the policy. If a premium due date is pressing you for time, place your old policy on a monthly billing, to give yourself time to make sure every thing is done that needs to be done.

[Quotes For Super Healthy] [Health Problems] [Insurance Information] [Calculators, Worksheets and Checklists] [Contact Us] [Money Saving Tips] [Cigarette Smokers] [Special Rates For Other Tobacco Users] [Home]