FAQs

[vc_row][vc_column][vc_tta_accordion css=”.vc_custom_1464110471208{border-top-width: 0px !important;border-right-width: 0px !important;border-bottom-width: 0px !important;border-left-width: 0px !important;padding-top: 0px !important;padding-right: 0px !important;padding-bottom: 0px !important;padding-left: 0px !important;}”][vc_tta_section active=”1″ title=”How to use Term Teams Frequently Asked Questions”][vc_column_text]Just click on the arrow on the far right and the answer to the question will be revealed.

You can fill out the form below if you do not see you question answered here and we will get back to you shortly.[/vc_column_text][/vc_tta_section][vc_tta_section title=”How much Term Life Insurance do I need?”][vc_column_text]5-20 times your gross annual income is recommended by the industry professionals. Some experts recommend as much as 20 times your income due to interest rate returns being so low. Life Insurance is intended to replace the income of the breadwinner should he or she be unable to work.

It is highly recommended that you discuss your requirements with one of our financial professionals to better understand your specific financial needs and planning. Please feel free to call, with no obligation, and talk to one of our agents. The very least you will get out of the discussion is, “A Good Education”![/vc_column_text][/vc_tta_section][vc_tta_section title=”Who Can Take Out A Policy On My Life?”][vc_column_text]There are many ways to prove insurability of another. This would allow other people besides you or immediate family members to take out a policy on your life. If another person wanted to do this, they will need your agreement and an explanation as to why they are taking out the insurance. (i.e. because they are a business partner).
Also, parents are allowed to take out policies on young or even adult children. A favorable argument for this would be that in the horrible event of a child’s death, a life insurance policy could give you the money you need to take some time off from work in order to cope with the situation. There is often a rider in life insurance policies for children that allow your child to add more insurance coverage at a later date, usually at given age.
When your child is healthy and has no medical problems, and you have purchased a life insurance in their name, when they reach the age of +23, and are willing to have their own policy. They have the option of a guaranteed face amount and price if they continue with their child policy. If their medical status is fine, they should just cancel the child policy and buy an inexpensive new one. If they have a medical problem, they can just continue with the later, and cannot be rejected by life insurers because of their medical condition.
Some are against taking out life insurance on a child and argue that even though this insurance is cheap, if you were to lose a child, your household expenses would go down, not up. So if your kid is not a model or a child star, for example, you would not be losing income in the event of their demise.
You can listen to the arguments from both sides, and make the decision to take out a policy in your child’s name, friend or business partners name experts say that at the very least, you should make sure you are dealing with an A rated insurance company.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Which Insurance Companies do we represent?”][vc_column_text]To View our comprehensive list of A rated carriers just submit the Life Insurance Quotes and Rates form at the top of each page. Please enter your details accurately. Availability is subject to your state of residence.

Below is a list of some of the great providers that we work with. Depending our your needs and where you live some of these companies may not be available.

Banner Life, SBLI, Protective, Tansamerica, Mutual Of Omaha, ING, American General, Prudential, Met Life[/vc_column_text][/vc_tta_section][vc_tta_section title=”How Does Smoking Impact My Ability to Buy Life Insurance?”][vc_column_text]Smoking will cause a definitive impact to your cost for your life insurance. All insurance companies will ask you if you have ever smoked or presently smoke on their applications, as well as perform blood, urine tests, and physicals before granting you a policy.
If you are a smoker, you will find that your insurance premiums are considerably higher than if you were a non-smoker. This is because life insurance companies have created a list of risk types that categorize people according to their risk of dying.
The classes include 18 tables from super preferred, table 14. Those in the super preferred category are totally healthy and have not made any bad lifestyle choices. These people are given lower premiums since they are of smaller risk to die young. The premiums start to rise if your status is lower than super preferred because you have a shorter life expectancy. Many Americans are classified as standard, but smokers are often placed in even greater risk categories. These categories pay definitively higher premiums. If you are a “Healthy” smoker you would be able to get a preferred smokers rate, which is about the best you would be able to lock-in.
FYI, Cigar smokers who smoke no more than 4 cigars per month can qualify for a non-smoker rate with many carriers.
Many try to lie about their nicotine use, but they are misrepresenting the risk to the insurance company, and thereby committing fraud. A life insurance policy comes with a “contestable Period” that lasts for two years. It means the insurance company has at least two years after you buy the policy to contest any claim if you die if you lied on your application. The policy would then not pay out if the insurance company finds you were less than truthful about your nicotine use (or other illnesses), and they would do no more than return the premiums paid, but they would not pay the death benefit.
These are good reasons to make healthier lifestyle choices well before you apply for life insurance, but if you can’t quit, get what you can afford until you can smoking.[/vc_column_text][/vc_tta_section][vc_tta_section title=”General Life Insurance Terms”][vc_column_text]Agent
Insurance is sold either by a person who is self-employed, represents several insurers and is paid on commission, or by someone who only represents one insurance company and is either salaried or paid a commission. The former person is known as an independent agent, while the latter is called an exclusive or captive agent, or direct writer.
Apportionment
This is when two or more insurers cover the same loss, and they divide that or any loss proportionately.
Beneficiary
The individual or legal entity the owner of an insurance policy names to get the policy benefit if the insured–against event should happen.
Binder or Conditional Coverage
The temporary coverage the owner of an insurance policy gets until permanent coverage is approved.
Cash Value
A life insurance term referring to the amount, before adjustments, that the owner of a permanent policy is entitled to if the policy does not stay in force until the insured’s death, or an amount paid in addition to the death benefit.
Complaint Ratio
A process used by some state insurance departments to keep track of consumer complaints against insurance companies. Generally, this ratio reflects the number of complaints upheld against an insurer, as a percentage of the premiums it has collected.
Contestable or Contestability Period
The time during which an insurance company has the right to back out of issuing a policy or paying a claim if it finds an applicant misrepresented him or herself on the application. This time frame is usually two (2) years.
Deductible
The pre-agreed amount of money the policyholder must pay over and above what the insurer pays.
Endorsement
Otherwise known as a rider, this is a written attachment to an insurance policy that makes an alternation or addition to the policy’s features, benefits, coverage, terms, or conditions.
Fraud
When a policyholder or beneficiary intentionally deceives or conceals information in order to get an insurance company to issue a policy or pay a claim that would otherwise be declined or unpaid.
Grace Period
With regard to insurance, this reflects the amount of time you have after the premium is due to pay the premium without penalty or lapse of coverage.
Indemnify
Provide monetary compensation for losses.
Lapse
When an insurance company terminates a policy because renewal premiums have not been paid by the end of the grace period.
Mortality Rate
The rate at which death occurs for members of specific sectors, age, and gender groups. Life insurance rates are based, in part, on mortality rates.
Risk Class
A group that an insurer places a customer in that reflects his risk of filing a claim against the company. Consumers in the preferred risk class will have the lowest rates and premium payments.
Premium
The price paid for a Life Insurance policy. This can be charged monthly, quarterly, semi-annually, or annually.
Rate Regulation
The way in which states keep track of rates changes made by insurance companies. This is done either through prior approval or open competition models.
Reinstatement
The way in which an insurance company puts back into force a policy that has lapsed due to such things as failure to pay premiums or reduced paid-up coverage.
Settlement Options
The choices an owner or beneficiary of a life insurance policy gets on how the insurer is going to pay out when the policy owner or beneficiary take the benefits over time instead of one lump sum.
Severity
What insurers refer to as the size of a particular loss.
Twisting
This is an illegal insurance sales tactic in which an agent misrepresents themselves or the product being sold to get the consumer to purchase it.
Underinsurance
When a policyholder has not bought enough insurance to cover a particular loss.
Underwriting
The method by which insurers assess risk to determine if you are eligible for coverage and if so, what your premiums or rate should be.
Void
A policy free of legal effect due to the fact that the policyholder has misrepresented himself or herself in the insurance buying process.
Waiting Period
With regard to health insurance, the period of time that must pass after policy issuance before benefits are payable.[/vc_column_text][/vc_tta_section][vc_tta_section title=”How do I take out a loan on my policy?”][vc_column_text]Loan Value is the amount of cash value that can be borrowed on a policy. A policyowner may be able to make a loan against the cash value of the policy, based on the type of policy owned. A loan allows access to the cash value of the policy, while still maintaining the insurance coverage. When a loan is made against a policy, the death benefit is generally reduced by the amount of the loan plus any interest that is owed. Loan interest rates vary and specific provisions are generally explained in the policy itself.Generally, a policyowner can request a loan by calling a Service Center. However, in certain instances, a loan form or written request signed by the policyowner will be required. Please remember a policy loan accrues interest and will reduce the death benefit. A loan form or written request signed by the policyowner must be sent to a Service Center if:

• The policyowner requests that the loan check be sent to a temporary address.
• There is a change of address pending when the loan is requested.
• The policy is company owned. Signatures of two officers and their titles will be required for corporations and the sole proprietor’s signature will be required for sole proprietorships.
• The proceeds of the loan are being transferred to a bank.
• The policy has multiple owners.
• The policy is owned by a trust.
• The policy is assigned.

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