Guaranteed
vs. Non-Guaranteed
Due to recent
regulation, there has been a major change in the products offered
by many insurance companies. In an effort to keep costs down, many
companies are now offering "non-guaranteed" products. All this means
is that the premium is only guaranteed for a portion of the initial
coverage period. This is a good way to get longer term coverage
for less money.
In contrast,
if you do not want to assume any of the risk associated with the
possibility of increased premiums down the road, you can purchase
a "fully-guaranteed" term life insurance product. There is virtually
no risk of increased premiums until the initial coverage period
is over. Expect to pay more for this feature.
Rate Banding
Many insurance companies lower the cost per
thousand at certain intervals. This is called "Rate Banding". For
example it may cost $1.00 per thousand dollars in coverage for face
amounts up to $249,999, and only $.75 per thousand dollars in
coverage for $250,000 and more. This means that you may be able to
buy twice as much coverage for less than twice the premium!
Payment Modes
Deciding how to pay for your new term life
insurance policy can be a decision that could save you money each
year the policy is in force. Most companies offer annual,
semi-annual, quarterly, and monthly payment options. The least
expensive way to pay the premium is always annually, followed by
semi-annually, then quarterly, with the most expensive being
monthly. Choosing an annual payment could save you 5% or more over
monthly automatic withdrawels.
Actual vs. Nearest Age
There are two methods of determining your age for insurance purposes: actual and nearest age. Depending on the
company and how far off your birthday is, you could be considered a
year older than your actual age when the policy is issued. That is
why we say: "The longer you wait, the older you get, and that means
higher premiums!" Without you even realizing, you could have an
insurance birthday!
Child Riders
The following
companies offer insurance for children as a rider on a parentıs
policy. The specified amount is added to the parents premium each
year you desire coverage, up to the predetermined cutoff age (usually
21-24, depending on the company).
Company
Cost / Unit # Units available
First Penn Pacific $6.00
/ $1000 5-20
Great American Life $4.50
/ $1000 5-25
Jackson National
$25.00 / $5000 Max of 5 units
North American Company $8.75
/ $1000 1-10
Protective Life $6.00
/ $1000 1-20
Security Connecticut $6.00
/ $1000 2-10
TransAmerica $5.83 /
$1000 1-50
West Coast Life $7.50 / $1000 1-10
Zurich Kemper $8.00 / $1000 5-10
Please call
ConsumerQuote USA at 1-800-994-SAVE(7283) with any questions or
concerns. If you would like to purchase insurance for your children,
please note so on your request form or speak with a member of our
Client Development Team. |
