1. Why should I choose TermAdvantage?
2. Is TermAdvantage licensed in my state?
3. How does TermAdvantage select the companies it represents?
4. Does TermAdvantage only give quotes?
5. How confidential is my information?
6. How much life insurance do I need?
7. What does guaranteed level term life insurance mean?
8. How long do I need protection?
9. Should I insure my spouse, dependents, and/or children?
10. Can I convert term to permanent life insurance?
11. Can I still be insured if I have had some health problems?
12. How do I get the best price for my policy?
13. How long will it take before I receive my policy?
14. Will I have to take a medical exam?
15. How does a monthly payment plan work?
16. Will I have coverage while waiting for my policy?
17. When does my coverage begin?
18. What do I do if I want to replace my life insurance policy with a new one?
19. Should I buy term or permanent life insurance?
20. What is the advantage of guaranteed level vs. yearly renewable term life insurance?
21. What riders (add-ons) are available on term life insurance policies?
22. What is involved in the application process?
23. What factors determine my health class?
24. What happens if I receive a higher rate than I applied for on my policy?
25. How are term life insurance death benefit proceeds taxed?
26. When/How do I make my first premium payment?
27. What forms of payment are accepted?
28. How do I know I am purchasing term life insurance from a reputable company?
29. How does smoking or using other tobacco products affect my premiums?
30. If I become disabled, can I protect my coverage?
31. Can my policy ever be canceled due to health or illness?
32. Can I renew my policy after the guaranteed period expires; if so, how much will it cost?
         

1. Why should I choose TermAdvantage?

TermAdvantage is the no pressure way to buy term life insurance. We make it simple and convenient for you to compare policies, get accurate quotes, and apply for the right term life insurance policy online. We are committed to providing the highest level of service to our customers. We believe that customer service starts by listening to our customers so that we may better help them determine their insurance needs. We work hard to guarantee that our customers choose the best policy for their unique needs while also fitting their budget. We understand how valuable your time is and it is our promise to conduct all necessary correspondence quickly and efficiently. We will only contact you once you request an application, unlike many other sites that solicit you once you enter your personal information to get a free quote. Our quotes are free and require no personal information or obligation.

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2. Is TermAdvantage licensed in my state?

Yes, TermAdvantage is licensed in all 50 states and the District of Columbia..

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3. How does TermAdvantage select the companies it represents?

TermAdvantage monitors hundreds of insurance companies, but we only represent those with an A.M. Best rating of A or higher. A.M. Best is the most widely recognized rating agency of insurance companies in the nation. Their ratings are an indication of financial strength with A being an excellent rating and A+ or A++ being a superior rating. We want to be sure that our customers’ policies are underwritten by the most secure companies in the world. That is why we only select companies with a history of excellence.

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4. Does TermAdvantage only give quotes?

No. TermAdvantage handles every step, from submitting your application to servicing your policy after it is issued. Many online companies simply generate leads and then sell your contact information to bidding agents. However, your TermAdvantage agent will guide you through the entire process.

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5. How confidential is my information?

100%. No one has access to your information other than TermAdvantage and the highly rated insurer that you choose. We never sell or distribute any part of your information. You can view our Privacy Policy if you’d like.

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6. How much life insurance do I need?

Many people purchase life insurance in order to replace lost income should something happen to them. The proceeds from your policy should be enough to replace income for your primary beneficiaries and cover immediate expenses as well. Many financial planners and experts recommend coverage that is 5 to 10 times your annual income. However, this general rule of thumb does not take into consideration special needs or goals that you may have. For instance, you may want to account for pay raises, especially if you are young. Only you can determine that amount of coverage that is right for your family’s needs. Here are a few things to consider when trying to determine the amount of insurance for your family:

1. The amount of annual income your family needs.
2. How many years the income will be needed.
3. Final expenses.
4. College funds.
5. The payoff of outstanding debts.
6. The needs of your children and/or other family members.
7. The average annual percentage of interest your investments will earn.
8. The value of your current assets.
9. The anticipated annual inflation rate.

Individual needs will vary, so we recommend that you speak with one of our licensed agents to help you determine what is right for you. We also recommend that you consult with your financial advisor or attorney for professional legal and financial planning advice. You may also use our Life Insurance Needs Calculator to help you calculate your insurance needs.

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7. What does guaranteed level term life insurance mean?


If a policy is guaranteed level it means that the annual premium you pay on your policy is guaranteed to remain the same, or level, for the full length of the term. Your coverage is also guaranteed to remain the same, and the insurance company cannot cancel your policy or raise your premium for the entire length of the policy. Not all companies offer policies that are guaranteed level, so we recommend that you review the details of each policy carefully before choosing one. TermAdvantage only offers fully guaranteed level term policies. Your premium will not change for the entire length of your policy.

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8. How long do I need protection?

The amount of time you need coverage is dependent upon a variety of different things. First, think about the beneficiary of the policy. You may want to cover your children until they are out of college, or your spouse may need coverage until the time you plan on retiring. If your policy is covering your mortgage, choose a policy that is at least the length of the loan. The length of your policy should protect your beneficiaries until they would no longer be dependent upon your income. Guaranteed level term life insurance policies are available for up to 30 years depending upon your age.

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9. Should I insure my spouse, dependents, and/or children?

If your spouse earns income, the need for term life insurance applies equally because there will be a portion of your family income that needs to be supplemented in the event of a premature death. For a stay-at-home spouse you may also want to consider a term life insurance policy that is at least 50 percent of the amount of term life insurance coverage on the income-earning spouse. This will provide protection that may be needed to cover increased daycare costs, time away from work for the surviving spouse, and final expenses incurred due to the premature death of a stay-at-home spouse.

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10. Can I convert term to permanent life insurance?


Yes, all of the policies offered at TermAdvantage are convertible to permanent insurance. The time in which you may convert your policy varies depending upon your individual policy. Should you choose to convert your term policy to a permanent policy you will not have to reapply or take another medical exam, regardless of changes in your health. There are different types of permanent insurance, whole, universal, and variable. Traditional whole life has the most guarantees. The annual premium is guaranteed, and there are at least minimum guaranteed cash values and death benefits. Most whole life policies these days are participating which means that they earn dividends which can be used to increase the cash value and/or death benefits, decrease the premiums or be refunded in cash. Universal life is more flexible than whole life in that it has adjustable premiums with a guaranteed maximum. Universal also has minimum guaranteed cash values and death benefits. Instead of dividends, universal life policies earn interest at the credited interest rate determined each year. Variable life insurance has the fewest number of guarantees and therefore offers the greatest potential for cash value increases. There are required guaranteed annual premiums and a guaranteed minimum death benefit. However, there is no guaranteed cash value and you have to select the investments for your policy. Buyers typically are offered a variety of mutual fund accounts ranging from money market to aggressive growth funds.

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11. Can I still be insured if I have had some health problems?


It is very likely that you will be able to receive coverage. Several of the companies that we represent specialize in insuring those that are not in perfect health. Even those who have had heart/kidney disease, or stroke, as well as diabetics and cancer survivors have been able to find the coverage they need at an affordable price.

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12. How do I get the best price for my policy?


TermAdvantage is committed to making sure our customers receive the best price on their term life insurance, so we shop around for you. All you have to do is complete your application honestly, take your medical exam (at no cost to you), and provide any additional information and promptly return any additional forms required by the insurer. If the company you chose comes back with a higher rate than your quote, we automatically start working to find other companies that will offer you the best price for your specific health profile and needs.

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13. How long will it take before I receive my policy?


It normally takes 4-8 weeks after you submit your application to receive your policy. Most of our providers offer conditional coverage during the underwriting process. In these cases, coverage begins once your application has been received by the insurance company along with your initial premium payment and medical exam. Coverage is contingent upon qualification. Please read the conditional receipt of your life insurance application for specific details.

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14. Will I have to take a medical exam?

Most of the companies we represent do require applicants to take a brief medical exam. This exam is at no cost to you and only takes about 15 minutes. Your agent will schedule the exam for you at either your home or office, whenever it is convenient for you. During the exam, the licensed medical technician will take blood and urine samples. In some rare cases, additional tests may be required by the insurance company. TermAdvantage also offers No Medical Exam coverage up to $250,000.

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15. How does a monthly payment plan work?


There are a variety of payment plans available such as annual, semi-annual, quarterly, and monthly. If you choose the monthly payment plan, most often the insurance company will set up an automatic bank draft (EFT). This means that on a specified date each month your premium will automatically be deducted from your checking account, along with a small service charge (approximately 3% depending upon the insurance company). Monthly payment plans require an initial premium payment of two months premium in order to activate your policy. Annual payment plans have no service charge. Depending upon your state and the insurance company, a credit/debit card may be used for the initial premium only when securing conditional coverage.

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16. Will I have coverage while waiting for my policy?

Conditional coverage may be available depending upon the insurance company. This is temporary coverage during the 4-8 week underwriting process. Your coverage begins as soon as the application along with the first premium payment and medical exam are received by the insurance company. Most of our providers, depending upon your state, will hold a credit/debit card on file to secure the conditional coverage. They will not charge your card until the policy is approved and accepted by you. Coverage is contingent upon qualification. Please read the conditional receipt of your life insurance application for specific details.

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17. When does my coverage begin?


Your coverage begins as soon as the policy has been issued and all requirements have been met. These requirements may include, but are not limited to, premium payment, medical exam, delivery acknowledgment form or application amendment. Conditional coverage may be available depending upon the insurance company. This is temporary coverage during the 4-8 week underwriting process. Your coverage begins as soon as the application, along with the initial premium payment and medical exam, are received by the company. Coverage is contingent upon qualification. Please read the conditional receipt of your life insurance application for specific details.

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18. What do I do if I want to replace my life insurance policy with a new one?


If you already have a life insurance policy and wish to replace it with a new one, you should not cancel this policy until you have made application for and received your new policy. Make sure to read and review your new policy. Once you are satisfied and accept your new policy, wait until you receive notification that the policy is in force before canceling your old policy. If your old policy had cash values, surrendering them may involve penalties. We recommend that you consult your legal or tax advisor prior to surrendering any cash values prematurely.

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19. Should I buy term or permanent life insurance?

There are advantages to both term and permanent life insurance. Deciding which one is the best for you really depends on your individual needs. Term life insurance is a much more cost effective approach for insuring temporary needs. For example, term life insurance would be the best option for securing college education or a mortgage. On the other hand, permanent life insurance is the best option for long term needs such as estate taxes. Many families are opting for a combination of both term and permanent life insurance. Over 95% of our business comes from selling term life insurance.

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20. What is the advantage of level vs. yearly renewable term life insurance?

The difference between level term life insurance and yearly renewable term life insurance is that the premium remains level over a specified period of time with level term and yearly renewable term begins with a lower initial premium, but the premium increases each year. If you only need coverage for a few years, yearly renewable term life may be the way to go. However, if you need coverage for more than a few years a level term policy would usually be the most cost effective. When choosing the length of your term make sure to carefully consider your needs, after the level premium period expires, most insurance companies require a new medical exam in order to qualify for renewal. If for some reason you do not qualify, your premium will increase after the level premium period expires.

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21. What riders (add-ons) are available on term life insurance policies?

Accelerated Death Benefit Rider-
This rider allows for early payment of a portion of the basic policy’s death benefit upon receipt of medical proof that the insured is terminally ill and if certain conditions are met. These conditions are dependent upon your individual policy.


Accidental death Benefit Rider-
The ADB rider will pay a specified additional amount above the face amount if you are the person insured and you die as a result of an accident. The amount of ADB available at the time of application is usually equal to the lesser of either the face amount or a fixed dollar amount such as $150,000 or $200,000. Experts recommend this rider to young individuals (accidents major cause of death) especially if you’re married with a family and you have little savings so that additional money would be needed if death occurs without warning.

Guarantee Insurability Rider-
A Guarantee Insurability Rider gives you, as the owner of the policy, the right to purchase additional insurance at certain designated future dates regardless of what the health of a person being insured is at that date.

Waiver of Premium Rider-
The Waiver of Premium Rider insures that you, if you are the policy owner, will not need to pay premiums if the person being insured becomes disabled. The insurance company then would either waive or pay the premiums due and maintain the coverage in force. The definition of disabled varies depending upon the type of policy purchased and the provider of the coverage. The specific definition of disabled can be found in your Waiver of Premium Rider when you purchase it.

Family Insurance Rider-
The family insurance rider pays a selected amount, usually limited to $20,000, on the death of a dependent child or spouse. This rider is designed to provide small amounts of term coverage with only limited underwriting. A stand alone, fully underwritten term policy will usually have lower rates, but will have a minimum coverage amount of $50,000 or more. $10,000 of coverage on your spouse and all your children under a Family Insurance Rider will cost about $25 per month.

Dependent Child Insurance Rider-
A Dependent Child Insurance Rider provides coverage for the amount selected, usually limited to $20,000. All children (including legally adopted children) from the age of 15 days to 18 years at the time of purchase can be covered by this rider. Future children will automatically be covered from age 15 days. The dependent coverage rider provides a specified death benefit upon the death of the dependent. Coverage usually continues until the child reaches age 23, or you, if you are the person insured, reach age 65. The death of a dependent often results in a financial hardship due to funeral and burial costs. This rider can provide the benefits needed to cover those expenses.

Spousal Rider-
On the death of your spouse, the Spousal Rider will pay the amount of coverage you have chosen. A stand alone, fully underwritten term policy will usually have lower rates, but will have a minimum coverage amount of $50,000 or more. You may not want that much coverage. Experts recommend the Family Insurance, Dependent Child Insurance, and Spousal riders if you feel that burial expenses, medical bills, or other expenses incurred as a result of the death of a loved one will cause a financial hardship. They also recommend these riders if you have one or more family members who are in good but not perfect health, and thus may be rated (asked to pay a higher premium) if they try to buy a policy on a fully underwritten basis, or if you want a small amount of coverage which would either be very expensive or not available under a separate policy.

Guaranteed Re-entry Rider-
The Guaranteed Re-Entry Rider lets you renew your term insurance at certain points throughout your term policy coverage without having to prove insurability, i.e., undergo a medical examination to prove that your health is the same as when you first got your policy.

Conversion Feature-
The conversion feature allows you, the owner of the term life policy, to convert the policy to a permanent life insurance policy ( whole or universal ) during a specified period of time without evidence of insurability.

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22. What is involved in the application process?

The application process involves submitting an application and taking a medical exam. The medical exam is paid for by the insurance company and can be scheduled at either your home or office. The exam normally consists of blood and urine samples, blood pressure readings, height, weight, and medical history questions. Occasionally additional requirements are needed. After you have submitted your application and taken a medical exam, the underwriting process will normally take 4-8 weeks. Once your policy is approved, we will send it directly to you.

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23. What factors determine my health class?

Each insurance company sets limits on height to weight ratios (build), blood pressure, cholesterol, and other particular health issues in order to determine health classes. Family history and lifestyle also play a role in determining your health class. “Preferred” rates require excellent overall health as well as a healthy lifestyle. You may not use tobacco, have a history of alcohol or drug abuse, or be involved in hazardous activities to be considered for “Preferred” rates. It may be difficult to determine your own health class, so we make it simple to use to figure out exactly where you stand. Our Health Class Estimator helps you better determine your particular health class and get the lowest possible qualifying rates for your situation. We are constantly updating information on dozens of leading insurers to provide you with the most accurate health class information possible. Please note that all insurers require a medical examination prior to determining your actual health class and resulting rate. This determination may differ from the initial health class or rates that you were quoted during the application process.

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24. What happens if I receive a higher rate than I applied for on my policy?

In the event that you apply for a life insurance policy through TermAdvantage and the premium for your policy is higher than the premium you were quoted, we will automatically begin working to find you another life insurance carrier that may be more lenient given the reason you received the higher rate. Once we have found other carriers that may offer a more competitive rate, your TermAdvantage agent will contact you to discuss your options. We never disclose your name or personal information until we have discussed the alternate options with you. At that time, you will be able to either continue with the original life insurance company you applied with or apply with the alternate carrier that may offer a better rate.

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25. How are term life insurance death benefit proceeds taxed?

Most term life insurance death benefits are non-taxable. However, they are subject to estate and inheritance taxes. These taxes can be avoided by establishing a Life Insurance Trust, where the trust is the owner of the policy. We recommend that you speak with your financial planner or attorney for advice on how to receive the most favorable tax treatment for your life insurance death benefit. Life insurance death benefit proceeds are generally not subject to income taxation provided they are paid in a lump sum; however, there a few exceptions to this rule. If a settlement option is used other than the lump sum option, then the interest earned on the principal death benefit is taxable. Although life insurance proceeds are generally exempt from income taxation, they are subject to estate and inheritance taxes. For more information on estate and inheritance taxes visit the estate planning section.

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26. When/How do I make my first premium payment?

The initial premium payment is made once your policy is approved, generally 4-8 weeks after your application is received by the insurance company. Payment may be made by check for quarterly, semi-annual, and annual payment modes. For monthly payment plans, the insurance company will set up a monthly bank draft (EFT). The EFT form will be included in your application. However, if you choose conditional coverage during the 4-8 week underwriting process, you may make the initial premium payment with your application. Most of our providers, depending upon your state, will hold a credit/debit card on file to secure the conditional coverage. They will not charge your card until the policy is approved and accepted by you. Conditional coverage normally takes effect after the medical exam is completed and the application, along with the initial premium payment, is received by the insurance company. Coverage is contingent upon qualification. Please read the conditional receipt of your life insurance application for specific details.

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27. What forms of payment are accepted?

Most insurance companies offer four payment plans: annual, semi-annual, quarterly, and monthly. Once your policy is in force you will be billed via mail for your premiums. If you choose the monthly payment plan, most often the insurance company will set up an automatic draft from your checking account (EFT). This means that on a specified date each month your premium will automatically be deducted along with a small service charge (approximately 3% depending upon the insurance company). Depending upon your state and the insurance company, a credit/debit card may be used for the initial premium only. Monthly payment plans require an initial premium payment of two months premium in order to activate your policy. Annual payment plans have no service charge.


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28. How do I know I am purchasing term life insurance from a reputable company?

The top independent financial rating services such as A.M. Best, Moody’s, Standard & Poor’s, and Fitch give ratings only to reputable insurers. These ratings are based on overall financial strength and liquidity, and are given a rating such as A++, A+, A, A-, B, or C. Each financial rating service has their own system for rating insurers. You may click on each rating service to view their rating system and criteria. TermAdvantage represents only those insurers with an A.M. Best (click to see rating scale) rating of A (excellent), A+ or A++ (superior). A.M. Best is the leading independent evaluator of insurance companies since 1899.

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29. How does smoking or using other tobacco products affect my premiums?


Smokers do have higher rates than nonsmokers, due to the increased health risks associated with smoking. However, some companies do offer lower rates for those who intended to quite smoking within one to four years. At the end of that time the individual agrees to requalify in order to maintain the lower rate. Most companies require you to have quit smoking for at least a year to be considered for non-smoker rates. Other forms of tobacco such as cigars, pipes, and chewing tobacco are most often rated the same as cigarettes, but some companies do allow users of these products to qualify as non-smokers.

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30. If I become disabled, can I protect my coverage?

The Waiver of Premium Rider insures that you, if you are the policy owner, will not need to pay premiums if the person being insured becomes disabled. The insurance company then would either waive or pay the premiums due and maintain the coverage in force. The definition of disabled varies depending upon the type of policy purchased and the provider of the coverage. The specific definition of disabled can be found in your Waiver of Premium Rider when you purchase it.

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31. Can my policy ever be cancelled by the insurance company due to health or illness?

No, the insurance company cannot cancel a policy during the policy period for any reason, including changes in health or illness. The only reasons an insurance company may cancel a policy are failure to make the premiums payments or misrepresentation of statements made in the application.

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32. Can I renew my policy after the guaranteed period expires; if so, how much will it cost?


Yes, all of the policies we sell become yearly renewable after the guaranteed period without the need to reapply or take another medical exam. Premiums will increase initially after the guaranteed period and may increase annually thereafter. If your policy is renewable, it will have a guaranteed maximum renewal premium which is explained in your policy. This is the amount you will have to pay to renew your coverage after the guaranteed period ends. You may also choose to reapply for new coverage with either the same company or a different company. If you qualify for coverage with the same company, this process is called re-entry. In some cases where a competitively rated policy cannot be attained, conversion may be the best option. Many policies carry a conversion features which allows you to convert your term policy to permanent insurance coverage (whole or universal). Conversion terms vary depending upon the company.

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