Life Insurance Basics

WHY FindaTerm

FindAterm.com was founded by Rick Dixon, an insurance agent with 20+ years in the business. We are located in Brentwood, TN. What we try to do is pull back the curtain on life insurance pricing and let you look at unbiased quotes. We even have companies on the calculator available for your review that we don’t even sell. You can spend as much time reviewing terms and rates as you like, before or after we talk. I don’t like paying insurance premiums myself, just like you I assume, so I will only recommend the best possible option I can find for you. I’ll put my experience and 1000s of client interviews to work for you.

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Should I go with the lowest quote?

Sometimes we hear people say that our quote is higher than a quote they received from someone else. At FindaTerm, we aren’t trying to give you the lowest quote we possibly can, we attempt to give you the lowest price that you will qualify for. Our quotes take into account your height/weight, medical and family history, etc. We could quote everyone “super preferred” and that would probably result in more people applying with us, but then we would often times have to come back with approved rates that are higher than you expected. Our quote does not affect underwriting either way. In many cases, we see a favorable underwriting outcome and rates are actually less than our quote. So remember, we are trying to offer you the lowest possible quote that we think you’ll qualify for.

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What is term life insurance?

Term life is simply a life insurance policy that locks in your premium and death benefit for a certain number of years. If someone refers to a 20 year term policy, this means that the price you pay will not change for 20 years. If the death benefit is $100,000 for a 20 year term policy, then for the next 20 years, and as long as you pay the premiums on time, the insurance company will pay your beneficiary $100,000 if you were to die. The most common number of years for term policies are 10, 15, 20 or 30 year terms. Recently, 40 year terms have been introduced. The shorter the term, the less expensive the premium is now.

The idea behind a term policy is to allow you to purchase the most amount of coverage for the least amount of money right now, and provide the protection for your family for a certain time period. Term insurance usually builds no cash value and at the end of the term, your premium will increase. Usually the increase is dramatic and most people don’t pay the higher premiums for very long. When a term ends, you have a few options, which include:

  • Continue the coverage and pay the increasing premiums
  • Cancel the coverage
  • Apply for a new term policy
  • Convert the term insurance to a permanent plan.

This last option is important because conversion is allowed with no underwriting. When applying for term coverage, you should always ask if the policy is convertible and to what age.

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What is term life with return of premium?

Sometimes people will say to me, “I don’t want an insurance policy where I could pay for 20 years and then get nothing in return.” Well the insurance companies have an answer for you. How about paying your premiums for 20 or 30 years and then if you don’t die (that’s the good news), all of your premiums paid will be refunded to you. You pay more for this feature, and it usually works best for policies issued to those in the lower age brackets at the best ratings. We can discuss this option with you to see if it makes sense.

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What is permanent insurance?

Permanent insurance (whole life) is a policy that has a premium that’s guaranteed for life and usually builds a cash value. Most of the time we find that for folks that are between the ages of 20 to 60, and that are in need of larger policies, term insurance works best due to the lower premium. We also find that permanent insurance has a place for those folks in the higher age brackets that need a final expense type policy or are using life insurance for estate planning or pension replacement. Another type of permanent insurance, Universal Life, also builds a cash value and can offer premiums that are guaranteed for life. Universal life can offer flexibility in the scheduled premium based on current interest rates and how long the policy is designed to stay in force.

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Do I need to take an insurance exam?

It depends on your age and how much insurance you need. We offer policies that can be approved without an exam. For a relatively healthy person, taking an insurance exam that qualifies you for a preferred rating can result in a premium that is significantly lower than a policy issued on a “non medical basis.”

An insurance exam is performed by a qualified technician who will come to your house. Normally the exam consists of a blood draw, urine sample, height and weight measurement, blood pressure reading and a medical questionnaire. The process takes about 30 minutes. Most companies will provide you with a complimentary copy of your results. It’s best to fast for 7-8 hours before the exam, no food and only water to drink. Schedule the exam at a relaxing time of the day in a calm environment.

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How much life insurance do I need?

Click on the link below and you can download our worksheet to help you determine how much life insurance you need

Life Insurance Calculator

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