Term insurance allows you to buy the maximum amount of life insurance coverage at the lowest possible price. When your need for insurance is temporary - such as covering the mortgage, making sure the funds are there to put your children through college, perhaps covering a business loan - term insurance is most likely the most cost effective way for you to cover that need.
The advantages of term insurance cannot be equaled - Term insurance provides affordable protection for a temporary period of time. The term can be set for one year, for 5, even 10, 15 or 20 year periods. (If your need for insurance extends beyond that period, your Term policy can be converted to a permanent life product - Universal or a Whole life policy. With the conversion feature, the change to a permanent plan may be done without having to show evidence of insurability... which means having to take a new physical examination).
There are some disadvantages to buying term. While much cheaper in the early years than a permanent life plan, the rates do get more expensive as you grow older. Should you know your need will be more than temporary, then buy a permanent plan. It is important to note that term insurance does not build in cash value.
WHAT IS INVOLVED IN SECURING TERM COVERAGE?
A medical exam is required. The extent of the medical exam is based on the amount of coverage desired, your age and your general health. For example, a healthy 40 year old males wanting to buy $250,000 term would likely need a medical exam consisting of a blood profile, home office specimen, height, weight and blood pressure measurements and answering questions on a medical profile questionnaire. The exam can take place at your home or business by a nurse hired by the company at a time and place convenient for you. If the coverage limits were higher, your age were greater or there were health problems, the company could and likely would require an attending physicians #39 statement (a questionnaire sent to your doctor) and more a more extensive exam, likely including EKG tests, etc.
HOW SOON CAN COVERAGE BEGIN?
Once the application is completed and a downpayment is collected, a conditional receipt issued, which provides temporary coverage until the policy is either issued or declined by the company. The exceptions to this include the existence of a potentially serious health condition (wherein the company will wait until the medical exam is completed before allowing the coverage to be placed in force). Another stumbling block to issuing a conditional receipt for temporary coverage is in the event an existing life insurance policy is going to be canceled and replaced. Unique to New York is a law known as Reg60. This requires that before a policy can be issued that will replace another policy, certain forms must be completed. The intent behind this law was to protect you... the insurance purchaser from "replacement artists", that were frequently talking people into changing life insurance policies when it was definitely not in the best interests of those consumers.
HOW CAN I KNOW I AM GETTING THE BEST PRICE?
The RP Wheeler Insurance Agency, LLC has access to over 37 life insurance companies - each with an AM BESTŪ rating of A or better. (AM Best is an independent insurance company rating company. An A rating means the insurance company is in excellent financial condition).
The RP Wheeler Insurance Agency runs each and every quote through this process so that the quote you receive from us - is the one offering you the very best protection at the very best price.
WHY DO PRICES DIFFER SO MUCH?
There are several factors that determine the rate, the price you will pay. Obviously, rates do vary between companies. That's why the RP Wheeler Insurance Agency, LLC retains access to so many of the best.
Another big factor in determining the price is the person insured. The rate is affected by the age, by gender (males are more expensive than females), your general health (for example, someone 20 pounds overweight with a family history of heart problems and diabetes would be rated higher than someone of identical age and gender that is not overweight and has no medical problems in the family history). Note that it is extremely important to be totally honest in providing the underwriting information to your agent or company. Each policy sold in New York contains a 2 year contestability period. During that time, if the company learns that incorrect information was willfully supplied to them, the coverage does not apply and the premium monies you paid would be returned to your family. As well, there is no coverage for suicide during the 2 year contestability period.
Let us quote your life insurance today. Give us a call at (315) 539-5500 or toll-free at (877) 896-9702 on weekdays from 8:30am - 5:00pm. For quickest results, fax your quote request to us at (315) 539-0961, emailing us as life@rpwheeler.com or by clicking on the Free Quote button below. Either way, we will get back to you right away!
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