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Frequently Asked Questions
What is Term Life Insurance? Term Insurance is generally the least expensive and least complicated type of life insurance. It provides insurance protection at a low cost for a specified period of time, such as 10, 15, 20 or 30 years. At the end of the term, you may renew the protection, although rates may then increase. There is no "accumulation" element, or cash value with term insurance. Term insurance is ideal for people who have a temporary need for life insurance protection or who need a large amount of coverage, but are on a limited budget. Term insurance can also satisfy the needs of business owners who wish to cover the life of a key employee. Additionally, rather than passing outstanding obligations to your loved ones, term insurance can be used to pay off these debts in the event of the insured's death. Why are your quotes for life insurance so low?
Why do premiums vary from company to company? Actually, premiums vary because the insurance company has targeted categories to gain market share, for example ages males 35 to 45, products, e.g., 10 and 20-year guarantees, and/or classifications, e.g., Preferred Best, the classification with the lowest premiums, indicates no unusual medical or personal history. If you fall outside a target demographic, that company may no longer be competitive. It pays to check your classification carefully. Quote Services quotes vary, Why? Simple. Not all services take the time to classify you based on their best estimate of your probable classification at issue of a policy, e.g., as a preferred risk or as non-preferred. Classification inflation caused by asking too few questions can mean that the policy you select may have a much higher premium than is quoted when issued. So taking the time to get your best estimate of your classification with ChoiceQuoteSM can mean accurately quoted premiums. The other reason quotes vary is that not all services represent all competitive companies. This occurs because some services elect not to represent certain insurance companies because of marginal service in the past or the quote service may be unable to contract directly with the insurance company. Alternatively, some services represent only the companies where the maximum compensation is available. If a company does not appear in our quote system it may mean we are not contracted with the company. In some cases this means they are new to the term market with competitive premiums and we have not completed the paper-work. Selected companies do not appear in our database because our experience has shown their service is poor and untimely. Some companies have instructed their agents not to provide quote information and/or comparisons of their premiums over the Internet. Finally, not all companies will contract with all direct-to-consumer companies for a variety of reasons. How do you select companies to recommend? ChoiceQuoteSM selects companies to be quoted based on the following criteria:
What is your relationship to the insurance company? ChoiceQuoteSM and/or its agents represent most major companies offering competitive term insurance policies. However, not all companies are represented in all states and not all recognized companies offer competitive term policies. ChoiceQuoteSM is compensated solely by the insurance company, and only after you have: 1) selected the company, 2) qualified for the insurance, 3) reviewed the policy and 4) paid the premium. Therefore, the final decision is always in your control. How is ChoiceQuoteSM compensated and how much does ChoiceQuoteSM receive? ChoiceQuoteSM and/or its agents receive compensation, called commissions, directly from the insurance company you select. Commissions fall into two categories, base and bonus. Base commissions depend on the plan guarantee you select, e.g. 10 or 20-years. Commissions vary widely from company to company. Agent commissions can be as low as 40% or as high as 80% of the first year premium. The policy fee is excluded from commission by most companies. Agents usually do not receive commissions, called a renewal commission, after the first year for like insurance. In addition, certain companies pay a volume bonus to ChoiceQuoteSM which begins when premium volume placed with a company exceeds a certain level, e.g., $250,000 of first year premium. ChoiceQuoteSM may also earn nominal renewals to service policies such as 2-4% for five years. ChoiceQuoteSM may also receive selected other compensation for attaining a high level of placement of policies submitted for underwriting, and/or for keeping policies in force (persistency). Note, however, that compensation is predetermined by the insurance company for all agents and direct-to-consumer marketing companies such as ChoiceQuoteSM. For short-term needs — under five years — Yearly Increasing Premium plans offer the lowest average premium. For longer needs, a guaranteed level premium for 5, 10, 15, or 20 years can have the lowest average cost. Some companies, depending on your age, will offer guarantees to 40-years. What happens after I choose a quote? Just follow the simple 1, 2, 3 steps at the end of the Application Request screen:
Note: Your application along with a quote for the plan you selected will be mailed directly to you for your for approval. Is my information confidential? Yes, by federal and in some cases state law, information you provide to gain acceptance by the insurance company is confidential. It must be kept confidential by the insurance company and may not be released to any third party not a participant in the underwriting process. ChoiceQuoteSM does not release inquiries or give quote request information to any third party. ChoiceQuoteSM may, however, use information provided to advise you of renewals, new products or premium changes, or relevant issues unless your request that we do not. The ChoiceQuoteSM site, in addition, is secure, to further ensure safety. How long does it take to get my policy issued? Consumers are rewarding the most competitive and financially strong companies with a large volume of applications. This "flight to quality" is now overloading companies with low premiums. Plan on 6-8 weeks processing time after we have received your application and the insurance examination has been completed (no we're not kidding). The direct-to-you ChoiceQuoteSM system has been crafted to optimize ecommerce processing without face-to-face contact which may save you time. All communications are via phone, fax, mail or email. If you wish to speak to a licensed agent, call 1-888-SEE-TERM (888.733.8376) Are there any other fees or charges for ChoiceQuoteSM services? No, ChoiceQuoteSM is compensated by the insurance company only after you have made your plan choice and received a policy you find satisfactory. In most states you will have a free look during which you may return the policy for any reason. If premium had been paid, your full premium will be refunded. As a result, the decision is always in your control. |
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To speak with a licensed professional, 1-888-SEE-TERM 1-888.733.8376 (Toll Free) 8 a.m. to 6 p.m. Eastern time, Monday through Friday ChoiceQuoteSM Insurance Services, Inc. CA License #711831 |
Robert P. O'Leary, CLU is licensed agent in all states except AK and WY: Commercial use by others is prohibited by law. No portion of this site may be copied, published, faxed, mailed or distributed for any purpose without prior written authorization. All rights reserved Copyright © 2002-2010 |
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