Many people do not realize how cheap term life insurance can be. Some of our clients have saved over 70% on their life insurance premiums. This can mean hundreds, even thousands of extra dollars in your pocket. Whether you are considering an insurance purchase or just checking on the cost of your existing policy. Our search engine can quickly find the cheapest cost life insurance for your situation.

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How much life insurance do I need?

Surprisingly most people do not have enough insurance. Life insurance is designed to protect those who depend on you for financial support, by continue that support in the event of your untimely death. There is no precise formula to tell you how much insurance coverage you need, but recommendations from various financial experts range from 7-14 times gross annual income rule for family protection.

Your life insurance program should do more than just replace lost income. It should cover all of the new expenses that will occur after your death: funeral expenses, taxes, probate costs, childcare, elderly care, etc. It should also take into account future expenses such as children’s college expenses and a retirement fund for your spouse. Click here to calculate needs.

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How can I buy the most life insurance for the least cost?

Term insurance usually provides the most immediate bang for the buck, but it can be the most expense way to buy long-term protection. To find out whether you should have term or permanent or something in between, refer to our knowledge base or click: About Term Insurance; About Permanent Insurance.

The TermSmart search engine is geared to find the best level term policy for your needs. Level term is a policy in which the premiums remain level for an initial period of time and then increase annually. It is normally the cheapest choice for short to intermediate coverage periods. (See About Term Insurance)

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How do I select the cheapest policy?

If level term is what you need, then finding the cheapest policy is easy. Just enter your information into our search engine and let TermSmart do the work.

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What if I already have life insurance?

Feel free to get a quote from whether you have existing life insurance or not. If we find you a better price or better features at a similar price, you may want to consider replacing the your current policy.   Under no circumstances, drop your current policy until you have received a replacement policy and paid the premium. Also, the laws of most states require that we provide you with a “notice of replacement”.    There will be a replacement question on the application. Please indicate your intention by answering yes to the replacement question on the application.

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I just paid an annual premium, if I find a better policy can I get my money back?

It depends on the kind of policy you have and the company that issued it. Most term companies do not refund partial premiums, but a few do. If you own a permanent product it may have cash values that can be refunded to you. If you are considering changing policies it is best to place your current policy on monthly premium mode. This gives you time to find a new policy and make sure it is placed in force before canceling your existing coverage.

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How does mortgage protection insurance differ from the term you sell?

Life insurance is life insurance and you can apply the death benefits to any need that you see fit. However, some policies are structured to fit specific financial situations. Mortgage insurance is really a marketing label that is applied to product that has been designed to meet the specific needs of the mortgage borrower. This does not necessarily mean that is has a price advantage. Mortgage insurance is generally a term life policy that decreases over the life of the mortgage. Some simply decrease an equal amount each year and others make an attempt to decrease at about the same rate as your mortgage balance. Mortgage insurance premiums generally remain level throughout the mortgage period and some policies have built-in cash reserves and premium refund features. Some plans also offer a disability feature that pays some or all of the mortgage in the event of disability.

The “Level Term” products quoted on this site can be used to pay off your mortgage in the event of your death.   Whether they offer a cheaper alternative than mortgage policies depends on the internal mortality cost of the mortgage insurance you are considering. The two products are hard to compare because the policies structures are not the same. The face amount of the level term remains constant and the mortgage term declines. The presence of the additional features such as premium refunds and disability options makes it difficult to compare these two different products.

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What if I already have life insurance through my employer?

Life insurance through your job is normally group insurance. Group insurance is purchased by your employer to cover a large number of individuals under a single master policy. The major disadvantage of group insurance is lack of control. Your employer decides how much you get and can change the amount at anytime without your permission. If you change jobs, your group insurance cannot be transferred.

You should view group insurance as a nice extra. Unless you own the company, never, never depend on group insurance to provide your family with their basic financial protection.

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What about social security, doesn't it provide family coverage?

Social security does provide a monthly income for minor children of a deceased participant. The amount is not large enough to meet all the needs of your family and provides only a token lump sum amount to your spouse. Social security benefits should be supplemented with personally owned life insurance paid directly to, on for the benefit of, the beneficiaries of your choice.

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If I don't buy from my bank can they refuse my loan?

No, that is called tying and is illegal. Federal law prohibits banks, mortgage lenders and other lending institutions from forcing you to buy life insurance from them in order to secure a loan. Banks that attempt to “tie” the two transactions face stiff penalties and fines. You have right to buy you life insurance from the carrier of your choice and through the agent of your choice.

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Is credit life insurance a good buy?

Credit life insurance is frequently recommended when you take out of an installment loan for an expensive appliance or a new car. Credit life insurance usually has a relatively high cost.   The way to protect you family from outstanding balances on credit purchase, including cars, is to purchase enough level term to cover all you family needs. If you have adequate life insurance to protect your family (see needs calculation), periodic purchases even as large as an automobile, should not unduly stress your financial plan.

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How long does it take to get insured?

Typically, the underwriting process takes 4 to 6 weeks, but it can be slightly longer in certain cases. The process begins when you submit your application and we will keep you updated about how things are going.

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How do I apply for a policy?

At TermSmart you can apply on line or right over the phone. Our experienced personnel will assist you at every step and make the process as easy and simple as possible. All forms can be completed over the phone or in the convenience of your home or office. Completed forms are sent to you for your review and signature.

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What is underwriting?

Underwriting is the process that insurance companies use to determine the price category that you will be charged for your policy.  A professional risk evaluator reviews information about your medical and life style situation, and decides which premium rate category is most appropriate for you.  Many factors are considered during this procedure. Beware of sites that just quote you the super preferred rate. The only meaningful quote is one that makes an attempt to match your health and lifestyle profile to the companies risk selection criteria. For more information on how this process works and what factors can affect your price click FAQ About Underwriting.

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Will I need to take a medical exam?

Depending on your age and amount a medical exam is normally required. It usually takes less than 20 minutes and is conducted at a time and place of your choosing. The examiner will ask you some questions about your medical history and take a few measurements such as pulse, blood presser, height and weight. They will also probably take a blood and urine sample. (See FAQ’s about the medical exam for more additional details.)

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I have a minor health problem; can I still get life insurance?

Yes, but maybe not at the lowest rate. Most of the major term life insurance carriers use a multi-class rating system that ranges from ‘super preferred’ or ‘preferred best’ to standard. Some companies offer as many as eight different premium classes including more than one class of preferred and more than one class of standard. If you have minor health issues such as high blood pressure, high cholesterol, excess weight, ulcers, minor asthma and many other illnesses or conditions, you will probably still fall within one of these premium rate classes. Click here for a more complete list of premium class guidelines.

Each company sets their criteria to qualify for preferred rates. It is possible for one company to rate an individual as standard and another company to rate the same person as preferred. We are constantly on the alert for new carriers that have a combination of low prices and lenient acceptance guidelines. This ongoing effort, combined with a search engine specially designed to find your lowest cost risk profile, guarantees we will always find your “best buy” price regardless of your health situation.

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Will my price be higher if I use tobacco products?

Yes, given the same health profile, tobacco users are generally charged a higher price for life insurance than non-tobacco users. Cigarette smokes receive the highest surcharge and most companies lump all forms of tobacco use into the cigarette category.   A few carriers make a distinction between cigarettes and other tobacco use, such as cigar and pipe smoking or tobacco chewing. These companies have special non-cigarette tobacco rates that can be substantially cheaper than other alternatives. If our non-cigarette tobacco user, our search engine is designed to automatically find these bargain prices for you.

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How soon after I quit smoking, can I get the cheap rates?

To qualify for non-smoker rates you need to be tobacco free for at least 1 year. Some products and rate class categories require you to be tobacco free for up to 10 years and a few of the very cheapest rate categories do not allow any history of tobacco use.

A few companies offer a special rate to healthy smokers who have recently stopped or hope to stop smoking within the next four years.   If you answer the smoking questions on the input form the search engine will automatically find these companies for you.

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I have a major health problem; can I still get life insurance?

Probably, Yes! Even if you have a history of Cancer, Heart Disease, Diabetes and other major health impairments, we can often get you life insurance at affordable prices.

Most of the term life insurance carriers quoted over the Internet are seeking people who are among the healthiest segments of our population.   The search process required to find the best possible price for a health-impaired individuals is entirely different from the one that will find you the best standard or preferred price. Click here if you have a major health problem and want to find the lowest possible price for life insurance.

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Will my premiums rise if my health changes?

No, Never! Your premium rate category is determined at issue and cannot be changed during the life of the policy, unless you apply for a price reduction. Common rate reductions are: changes in smoking habits; significant and sustained weight loss; and successful control of blood pressure for a period of a year or more.   As a policyholder you may choose to cancel your policy at any time. The insurance company, however, must live up to their obligation at provide death benefit at the price they originally agreed.

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Will my life insurance cost after the guaranteed period?
Unless otherwise indicated on the comparison, all of our level term products are renewable after the initial level premium period. For policies with level periods less than 20 years, these renewal rates are displayed on the product detail illustration.

Once the initial level period is over, the rates increase annually. The policy essentially becomes a YRT policy, (Yearly Renewable Term) also often called an ART (Annually Renewable Term). The maximum renewal age varies from product to product but is usually in the 90’s.

Most policies have two renewable rate tables, current and guaranteed maximum. The former are the rates they currently expect to charge renewing policyholders, the latter is the most they can charge you. You should be cautioned that level term is not the best product for long term insurance needs. Depending on your age, the rates after the level period can climb sharply and in the 80’s and 90s can be prohibitively expensive. If you expect to need a policy well into your senior years, a permanent product might be a better choice.

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Can my policy ever be canceled?

Except for the non-payment of premium, the insurance company can only cancel your policy if you have withheld significant information concerning your insurability.  In most states this cancellation provision is limited to the first two years of the policy. After, two years the company cannot cancel your policy for any reason, except non-payment of premiums.   The policy provision that controls cancellation is called the incontestability clause.   One of the advantages of an older policy is that the incontestability period has expired and the policy cannot be canceled.   If you are considering replacing an old policy with a new one, please devote some consideration to the possible impact of the incontestability period.

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Does life insurance cover suicide?

Suicide is covered under all life insurance policies after the policy has been in force for two years. Some states mandate more liberal provisions and cover death by suicides more quickly. Check your policy provisions on delivery or ask one of our agents if you need additional information.

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Can a life insurance company ever refuse to pay a death claim?

Except for suicide within the first two policy years (earlier in some states), a life insurance company can only refuse to pay a death benefit if you have made a material misrepresentation. An example would be your failure to inform the insurance company of your last heart attack. Even in these extreme circumstances, they can only refuse to pay within the first two policy years. Thereafter, they cannot refuse to pay a death benefit for any reason.

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What if I misstate my age or smoking status?

All policies carry a provision for the misstatement of age. Both accidental and intentional misstatements are handled in the same manner.  If a misstatement has occurred that is not discovered until death occurs, the policy proceeds will be adjusted to reflect the amount of death benefit that could have been purchased at the correct age.
Some companies have inserted similar adjustment language for dealing with misrepresentations of smoking habits. Check you policy wording during the free look period if this issue is of concern to you.

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When do I make my first premium payment?

Your premium is due when you accept delivery of the final policy and have a chance to verify the premium and policy provisions.   You can, if you so choose, submit a premium payment with your application. This provides you with temporary coverage during the underwriting process. The exact legal specification for this temporary coverage can be found in the “Conditional Receipt” portion of the application. Be sure to read it thoroughly so that you understand the limitation of this coverage.   Most often, your temporary coverage goes into effect upon completion of your medical exam. TermSmart does not require a premium payment on submission.   It is entirely your choice.

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Can I pay monthly?

Most companies provide several payment options including: annual; semi-annual; quarterly and monthly. The monthly option usually requires an automatic bank draft against your checking account. Our main comparison page shows annual premiums, but the modal premiums can be found in the policy details for each product.

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What happens if I miss a premium payment?

By law all life insurance policies carry a minimum 30-day grace period. You may pay you premiums up to 30 days late without any danger of the policy being canceled.   After 30 days you the insurance company has the right to request medical and other information before re-instating your policy.   Sometimes this is just a simple declaration of health, but it can be a complete medical exam at your expense.

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How can I make sure I pick a financially safe company?

TermSmart carefully evaluates the financial strength of each company we quote.   Except for very specialize situations, TermSmart quotes only companies rated A++ (Superior) to A- (Excellent) by A.M. Best.   Several independent companies evaluate the financial strength of insurance companies and make their findings available to the public.   The financial strength of the company that issues each of your products can be found on the policy details page of the comparison. For more information on financial ratings click here.

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What if my life insurance company goes broke?

Most states have some type of policy guaranty provision that can take effect in the event of an absolute failure of a life insurance company. These laws vary widely from state to state and many of the guarantee pools are under funded.  All provide policy owners a safety net for some or all of the policy cash values or death benefits, but almost all of these arrangements have a relatively low monetary limit on the funds that they protect.   State funds are seldom necessary, because financial examiners from each state's division of insurance continually monitor insurance companies licensed in their state in order to avoid insolvencies.

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If I buy from my bank is the policy insured life my bank account?

No! Bank accounts and deposits to an insurance policy are two entirely different things. All insurance companies are regulated by the states in which they do business.  There is no federal supervision or guaranties on any type of insurance account.
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Do you offer a money-back guarantees?

Our web site is designed to find you the lowest cost policy possible that fits our needs and situation. Our search services are free and you may quit the process at anytime. Premium deposits included with any application are forwarded directly to the life insurance company involved. We do not deposit your check, the life insurance company does.    You can withdraw you application at anytime prior to policy issue for a full and complete refund.   After you receive you policy, your will have 10 to 20 days (depending on your state of residence) to return the policy for a full refund of all amounts paid.   The policy refund provision is a matter of state law is unconditional. You do not need to state a reason. All you need to do is send the policy back.

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Are Term Life Insurance Death Proceeds Tax Free?

In almost all cases life insurance death precedes are free from state and federal income tax. They may however, be subject to federal estate taxes, depending on the policy ownership and the structure and value of the overall estate. Ask your tax advisor for help is you have specific questions or browse the knowledge base for additional information.

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How can I protect my insurance coverage if I become disabled?

Almost all policies have a provision for the addition of a rider, called "waiver of premium", which provides for a suspension of premiums after six months of a disability. Premiums will continue to be suspended as long as you are disabled or as stated in the terms of the policy. This rider is usually available for purchase from until age 55 and coverage often ends at age 60.

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What about purchasing life insurance on a spouse?

In today’s two income world it is prudent to insurance both breadwinners. The survivor needs calculator can help you estimate a death benefit for both and our search engine will quickly find you the lowest cost policy on each.

If your spouse does not work outside the home, you may still want to consider coverage.   The financial pressure on a family due to the premature death of a spouse can be significant.   The death benefit should be large enough to pay child care expense and to allow the surviving spouse to make any career adjustments necessary to meet the needs of your children.

Discounts are sometimes available if you purchase two policies from the same insurance company. All other factors being equal, this provision can save you $35 to $75 dollars. Use our search engine to find your lowest priced policies and then see if the spousal discount can save you’re a few extra dollars.

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What about life insurance on my children?

Many term policies allow you to add coverage for your children.  This usually takes the form of coverage for final expenses ($2,000 - $10,000) and often includes a provision for the children to convert the policy upon reaching their majority.

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Will I need life insurance when I retire?

You may.   Many people have death benefit needs that extend to or beyond their retirement date. If your mortgage runs past your retirement, you may want to keep a policy inforce until the debt is retired.
At retirement, your employee retirement program will offer you at least two options:

1) a lifetime monthly income with no residual to your spouse;

2) a lower amount that includes a lifetime income for you and a smaller lifetime income for your spouse.

Many people maximize their retirement income by selecting the higher income that pays during only one lifetime and using life insurance to provide for their spouse. Click her for more information on this dynamic financial planning tool.

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	1)	a lifetime monthly income with no residual to your spouse;
	2)	a lower amount that includes a lifetime income for you and a smaller lifetime income for your spouse.