What is Term Insurance?
Term insurance provides protection for a specific period of time. It pays benefit only if you die during the term. Some term insurance policies can be renewed when you read the end of a specific period, which can be from one to 30 years. The premium rates increase at each renewal date. Many policies require that evidence of insurability be furnished at renewal for you to qualify for the lowest available rates.
How much life insurance do you need?
If you are providing financial support for people who are depending on you, you probably need life insurance. To determine how much you need, deduct the total income that would be lost upon your death from the sum required for your family's ongoing financial stability. Beyond that, it depends on your particular circumstances (e.g., whether you have considerable net worth or few backup resources) and whether you want insurance for other purposes, such as educational funds or your own retirement income. Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb is to buy life insurance that is equal to five to seven times your annual gross income.
What Types of Policies are offered?
Policies offered have premiums that remain level for the initial term period your select, 1, 5, 10, 15, 20, 25, or 30 years. Therefore, following underwriting approval, your premium is guaranteed not to change during the initial term or your policy.
Do I have to take a medical exam?
Yes. Every company requires a brief paramedic exam which includes blood and urine sample. This is free and is done in your home or office, at your convenience, and usually takes less than 30 minutes.
What is the Medical Information Bureau (MIB)?
The Medical Information Bureau, or MIB is a non-profit association of about 600 U.S. and Canadian life insurance companies that provide information to each about an applicant past medical history. It's intention and purpose is to deter applicants of life, health, disability, or long-term care insurance who would omit or misrepresent facts about their medical history when applying for coverage.
How do I contact the MIB about my medical file?
The MIB does not have a file on everyone. But if your medical information is on file, you will want to be sure it is correct. You can obtain a copy ($8.50) by writing to:
Medical Information Bureau
P.O. Box 105, Essex Station
Boston, MA 02112
or call (617) 426-3660.
You can also visit the MIB web site at www.mib.com to find out more.
Why might the underwriting process take a while?
If you have any medical history that an insurance company may see as questionable, they will send a request to your physician(s) for your records that this process can take a few weeks. The other reason why underwriting can take a while is that if you are applying for a large amount of coverage, most companies will request a copy of your driving record, send for a copy of your doctor records (whether there is a history or not) and also call you to complete a Personal History Interview.
What is Personal History Interview (PHI)?
A Personal History Interview is conducted over the telephone and takes about ten to fifteen minutes. The interviewer will ask questions about your personal characteristics, mode of living and may also repeat questions already asked on the application itself. Some questions may seem odd or uncomfortable but are asked only to gain a better understanding of your background. It is important that if the interviewer calls you at an inconvenient time you ask to be called back.
What if I had a bankruptcy; how will that affect my rates?
With the majority of companies most will require that it be discharged completely or be over a year after filing before they will underwrite you. The reason being is that your past credit history may signify an inability to pay future premiums. Due to the high up-front cost that insurance companies incur to establish a new policy, they will be very cautious about this. If it has been discharged completely it shouldn't affect your rates.
How long does it take for the insurance company to pay a claim?
The insurance companies usually pay the claims within days of receiving the paperwork and a copy of the death certificate. Our experiences with the companies we work with have been very quick and easy.