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long term life insurance

Life Insurance

Where the Quoting comes from

The list of comparative rates is provided by an independent quoting service known as Compulife. Their mission is to obtain information from the top insurance companies who sell level premium life insurance. They then sell this service to insurance agents who want to provide competitive prices for their clients to choose from. It is the biggest and best life insurance quoting system in the nation.

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Nationwide, there are over 100 insurance companies included, providing you with the most thorough comparison shopping possible.

The Lowest Price

It is not possible to get any of these policies at a lower premium price. You are buying insurance direct from the insurance company. If you enter the insurance company's office and apply in-person, the premium is the same.

For the same life insurance policy, the premium that you pay is always the same irrespective of where you get it or from whom you get an application. Life insurance companies do not alter the premium price according to who helps you apply.

There is no such thing as "Buy direct and save". All advertising and marketing costs, including payments to agents, are just part of the cost of doing business. So you can not get a discount by not using an agent. The insurer decides how it will pay to get new business and pays the cost of marketing that it has chosen.

Your premium is determined by what any particular insurer determines your personal risk category to be. Life insurance is not a commodity, so no one can get you a "special deal" or volume discount, nor can they "exert influence" because they sell a lot of it.

Why such a Price Variation?

For the same coverage amount and period of coverage, there may be a wide range of premium prices that you see in the quote results for the different companies. That's why we offer this quoting system, so you can see the difference.

If there is a large variation, most of it is likely to be accounted for by different companies having different projections as to what it will take to pay the death claims and stay in business as a financially strong insurance company.

These expectations can vary a lot. Additionally, some insurers focus more effort on particular niches in the life insurance market and feel more confident in offering lower rates than other companies because of their specialized knowledge.

Some variation may also be accounted for by additional features such as a conversion right to a permanent policy of your choice after the term is over, compared to having to take the policy that the company specifies. Every extra benefit of value is likely to carry an extra charge.

Insurer Financial Strength

Life insurance companies vary in size and financial strength. The longer the period of coverage, the more important are the financial prospects of the life insurer. Financial stability can change over time, but it is certain that the company should at least be financially sound today.

The A.M. Best rating in the quoting system is an indication of the insurer's current financial condition

Duration, Renewal, and Conversion

At the end of the term, for those who find that they want to continue having life insurance for a longer period than initially planned, it is usually possible to continue coverage. However, there can be a big variation in renewal costs. The death benefit remains the same for as long as you maintain the policy.

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It is also common to be able to convert to a permanent policy at the end of the term without any requirement to requalify medically. If you want to continue to have life insurance, this may be the best and perhaps only way if your health situation has changed significantly. Some policies will have much better conversion options than others.

Although these options exist, it is more economical to buy what you need the first time without having to ever buy again or renew or convert.

If your health or circumstances change, life insurance may become more important than it seems now. If there is doubt as to how long you may want coverage, a longer period is a better choice than a shorter period.

At the same time, buying a longer period than what you need will result in you overpaying. It is therefore important to make a careful assessment of possible future needs and possible changing needs should circumstances change.

Payment Options

The lowest annual premium may not also be the lowest for monthly, quarterly, or semi-annual payment. Some insurers charge more than others for paying less often than annually. Monthly bank draft or annual check are the usually most convenient and are more likely to result in the the policy staying in force.

Risk Category

Upon application, the insurer alone decides the final rate, which may vary substantially from an applicant's expectations. Paramedic exam results sometimes cause great disappointment for overly optimistic applicants who find that they are offered twice the premium that they were expecting. If you have not had a recent physical exam, do not rely on necessarily qualifying for any particular risk classification.

A company with the best premium for one risk category may be far from the best for other categories. So the best company to apply for initially may be the one that has the best average rates over more than one category.

While there is great similarity, there is also some variation between insurers as to what criteria should have the most weight for each risk category.

Age calculation can vary between companies. Some calculate premiums based on your last birthday, while others base it on your nearest birthday.

Tobacco Use

Some companies cater to smokers more than others. They are more likely to make distinctions as to how much you smoke, for how long, and whether you smoke cigars or pipe instead of cigarettes. They can then offer lower premiums for carefully defined situations.

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