Term life insurance rates change periodically and the carrier with the best rate today, may not be the best rate in 6 months. When we shop the carriers we get the most current up to date rates that exist on the market currently for term life. It is important to make sure that rates are still applicable to when you are applying for the coverage. Clients will often wait on applying and the situation may have changed by the time that they get around to it. Not only can the rates change, it is important to know that it is just a quote. A quote doesn’t become a rate until you qualify for it in underwriting. Often times, clients will assume they can get the quoted rate, but when they apply they get a worse rating or declined.
Another item to consider with the current term life rates is whether the carrier is actual age or next age. If the carrier is actual age, you are eligible to qualify at that age and rate while you are that age. If a carrier is next age, you turn one year older 6 months prior to your next birthday. You can save age by backdating the policy prior to your actual birthday or your insurance birthday. It requires the policy date to be before the event and for the client to back whatever back premium to save age. Please come by www.paramountlifeinsurance.com to get the most up to date rate quote for your situation.
When buying term life insurance there are several things to consider. For example, what length level term do you want to buy. They offer 1 year annual renewable term, 5 year term, 10 year term, 15 year term, 20 year term, and even 30 year term. On top of that, many of the company’s offer a return of premium option. This option will return all of your premiums to you, if you outlive the term. I recommend to our clients that they have the term run at least through the years of highest need for their families. In other words, until there kids are at least 18 and preferably through college.
The term length is important, because at the end of the term the insurance cost will probably go through the ceiling and be cost prohibitive. Another thing to keep your eye on with insurance is your insurance age. Most life insurance companies, recognize you as one year older when you get within six months of your birthday. For example, if you are turning 43 on July 11th, you want the policy to be dated no later than January 10th to be considered 42. The other option to save your age is backdating the policy. This can be a good option, but you must catch up on the back premiums. Talk to your agent about this.
Make sure to put your policy in a safe place. It is a shame, but many life insurance policies go unclaimed. Either the policyholder lost the policy or never let his/her family know that he had a policy. Of course the insurance company is ok if the beneficiary doesn’t come forward. That simply means that they don’t have to pay out the benefit. They will not seek you out. This is a good reason to have an agent that services your account and advises you on your insurance needs.
When looking for a policy look at the financial ratings of the companies. Make sure the company you buy from has at least an A rating. It is easy to get caught up on just the rate and ignore the strength of the company. With today’s financial insecurity, make sure you consider this in your decision.
