Term Life Insurance Companies

Term companies provide time specific insurance policies to the public. These term insurance policies offered by term companies are very popular as they are less expensive in nature. People who need security for a temporary period of time usually opt for these policies.

Term companies provide time specific insurance policies to the public. These term insurance policies offered by term companies are very popular as they are less expensive in nature. People who need security for a temporary period of time usually opt for these policies.

Term Companies: Quotes

There are a number of term companies who offer a variety of term insurance policies; and each of them is attractive and unique in nature. The best way to choose the right term insurance company is online. A large number of term companies have web sites to provide information regarding term insurance policies. Term life insurance does not make any cash value and the premium normally mounts as the policyholder grows older.

Term Companies: Some Expert Advice

• People who go online for a term insurance policy need to fill up an online form. After submitting it, one receives quotations regarding attractive term insurance policies from term companies. Following this, the prospective policyholder can decide on the best and most affordable policy.

 

• Before opting for a term insurance policy, one must understand the intricacies of all the terms and conditions. Not only this, one should closely examine the exceptions as well; as they may adversely affect the nature of the coverage.

 

• Another important aspect one should consider is checking the credentials of term companies. By studying them well, one will be able to ascertain the financial dimension and constancy of the company. To know all about the credentials of term companies, one can refer to Standard & Poor, Moody’s and A.M. Best. These are companies that publish the ratings of term companies.

 

• Last but not least, one should first research and analyze the product and then opt for any term life insurance policy.

Term Companies: Contents of Online Quotation Form

In order to choose the best term companies, one must fill up an online quotation form. Most of these forms bear some common features, which include:

• ZIP code: One needs to assign the zip code of his locality
• Date of birth: Users have to put their date of birth in MM-DD-YYYY format
• Gender: Here one needs to specify M/F
• Coverage: One needs to select a particular coverage amount for which s/he will be insured.
• Term length: In most cases, five options will be given. One needs to select any one of them. The options are 5 years, 10 years, 15 years, 20 years and 30 years. These are annually renewable.

Some online forms require additional information such as:

• State: One needs to select his/her state of residence
• Height: Height should be given in the ft-inch format
• Weight: Weight should be given in lbs unit
• Tobacco/nicotine use: Here one needs to give his tobacco or nicotine addiction frequency.
• Guaranteed term: 10 years, 15 years, 20 years, 25 years, 30 years
• Health class: One needs to choose from best class, preferred standard or plus standard
• First name: One needs to give his/her first name
• Last name: Last name has to be given
• Phone: One needs to give a contact number
• E-mail: A valid email address should be provided

Term Companies: Choosing a Term Insurance Agent

Most term companies rarely sell products directly to the public. They sell their insurance products through agents. Some companies prefer to use “captive” agents who represent only one company. Others prefer to use independent agents. Independent agents are those who are free to represent several companies. These agents normally help one to select from a variety of products.

The selection of any term life insurance agent should be based on criteria such as trust, experience and the range of products they are providing. One should look for a helpful agent who can design the best life insurance plan for the client.

Term Companies: Some Popular Names

ACSIA, Americom, Clarica Life, North American, Ameritas, First Penn-Pacific, Ohio National, Banner Life, GE Capital, Pruco, Cincinnati Life, John Hancock, Security-Connecticut, CNA/Valley, Forge, MONY, West Coast, Ohio National Life Assurance Corporation, Western Reserve Life Insurance Company of OH, West Coast Life Insurance Company, Savings Bank Life Insurance Company of MA, Banner Life Insurance Company, AIG, Jackson National, Penn Mutual, American Republic, Lincoln National, Sun of Canada, Empire General, National Guardian, Transamerica, Fidelity, Old Republic, The Travelers etc.

Term Companies: Common Coverage

Almost all these term companies provide some common coverage like:

Mortgage Reducing Term: This is a term life insurance policy which bears a death benefit reducing to zero over a specific period of time. If one purchases this type of coverage through any lending organization where he mortgaged; then that lending organization will be the beneficiary and will be the only one to receive the death benefit.

Critical Illness Living Benefit: By this coverage, one can get a lump sum tax free amount against severe ailments such as a heart attack, stroke, cancer, organ transplant, coronary artery surgery, renal failure, paralysis, blindness and deafness. If death occurs before the claim is made, all paid premiums are usually refunded. But in order to get this sort of coverage, the applicant should have a good health report.

Accidental Death Benefit: This coverage includes benefits against death by accident, loss of a limb or limbs or loss of use of a limb.

Term Companies: Purchasing a Policy

Here are some tips by experts regarding purchasing any policy from term companies:

One can purchase a term insurance policy with level (same) premiums for one year. This is called annual renewable term (ART) and is renewable up to 90 years of age. Other term insurance policies are typically 5, 10, 15 or 20 year terms. As one becomes older, term insurance will be renewable at higher premium levels.

Almost all major term insurance companies require medical tests in order for one to qualify for the policy. For this reason, one should ensure that the policy offers the guaranteed renewal feature. This will guarantee that the policyholder does not need to take the medical test in order to continue the his coverage for another term. In this way, the policy will be converted into a whole life policy without any medical exam.

Another vital point one must take into consideration is that term life insurance policies normally contain clauses that define limitations on the event of death of an insured person. One should have a clear idea about these limitations.

Term Companies: Some Technical Terms

To know more about term companies and their policies, one needs to understand certain technical terms like:

Beneficiary: The person(s) who is/are entitled to receive the life insurance proceeds upon the death of the insured.

Cash value: The amount which is accessible in cash for loans or for withdrawals.

Convertible term insurance: Term insurance which can be converted to other types of term insurance policies.

Dividend: Dividends are the payments given by a company to its shareholders. Generally, when the company earns a profit, then that amount is normally utilized in two ways. It can either be re-invested in the business (called retained earnings) or it can be paid to the shareholders of the company as a dividend.

Face amount: This is an amount to be paid upon death or maturity as explicitly stated on the face of the policy.

Insured or insured life: The person who is insured.

Level premium: A premium which remains the same throughout the coverage period.

Paid-up insurance: Insurance that is effective without giving any additional payment.

Policy owner: The owner of the policy.

Premiums: The amount which is paid or to be paid, often in installments, for an insurance policy.

Renewable term insurance: This is a term insurance policy that can be renewed at the end of the coverage period. If one renews his/her policy, the premium rates normally become high. Some of the common renewable terms are for 1 year, 5 years, 10 years, 20 years and 30 years.