If you’ve already decided to protect your family with life insurance, you’re probably aware that the smartest way to find the best coverage is to compare term life insurance policies side-by-side online. It’s also wise to ask questions before and after you get your term life insurance quotes.
» Calculate: Life insurance needs calculator
We’ve put together a list of some basic and not-so-basic questions to consider when shopping for life insurance. While all of these things are worthy to know, not all of these questions may pertain to you and your family.
1. What is the financial health of the company that is giving me a term life insurance quote?
A strong prospect for future financial solvency is a key requirement for any insurance company that you purchase a policy from; their ability to provide a death benefit to your loved ones hinges on their longevity as a company.
Quotacy only works with insurance companies that receive top ratings from A.M. Best, an independent rating agency that looks at the financial strength of insurance companies and provides a letter rating, indicating their credit worthiness. Ratings run from A++ (best) to D (worst). Each life insurance company Quotacy works with has an A- rating for better.
2. Have I reviewed several term life insurance companies’ customer service ratings?
High customer service ratings are essential for you to be able to rest assured that your term life insurance purchasing experience is a positive one.
Quotacy searches for insurance companies that have received the highest customer service ratings from J.D. Power, the leading customer service ratings agency.
You don’t need to spend hours searching the web for these ratings. Quotacy put together a ratings guide of the top insurance companies for you here: Ratings for the best life insurance companies.
3. What rating has the term insurance company that I’m considering received from the Better Business Bureau (BBB)?
The BBB looks at a broad range of public data on thousands companies, ranging from their customer service record, integrity, and product and/or service quality. Based on this information, they produce a rating from A+ to F. Every insurance company that can be found providing term life insurance quotes via Quotacy has high ratings from the BBB.
While many insurance companies simply require that the two parties have an insurable interest (the death of the loved one purchasing the insurance would have an adverse financial effect on the beneficiary), some life insurance companies may have additional requirements. For example, if you are unmarried and want to buy life insurance on one another, some life insurance companies would prefer you to at least live together.
If you are in a same-sex marriage, run as many term life insurance quotes on each other as you like. You can buy life insurance on each other or name each other beneficiaries. At present, same-sex married couples have the same rights as opposite-sex married couples. Even if federal and state laws change, your life insurance contract won’t.
5. Am I eligible to be insured with my current immigration or residency status?
Life insurance companies may have restrictions based on your current or pending immigration status. Quotacy advisors can help you uncover your options.
» Learn more: Life Insurance for Non-US Citizens
6. Am I within the age range that life insurance companies consider insuring?
Life insurance companies have varying upper age limits for the applicants that they will provide term life insurance to, but it is always worth it to look for a policy.
For aging individuals, term life insurance can be a great way to prepare for retirement while there are some other guaranteed-issue policies that will help cover any end-of-life costs, should you pass away unexpectedly.
7. How will my job influence my term life insurance quotes?
If you have a job that is considered high-risk by underwriters (such as being a skydiving instructor or police officer), then you may face increased life insurance premiums. If this is the case for you, Quotacy advisors will gladly help you with your application in order to find the best term life insurance options for you.
» Learn more: How Much Is Life Insurance if You Have a Dangerous Job?
8. How will my hobbies impact term life insurance quotes?
Just like they’ll look at how you spend your time at work, underwriters will want to know if you spend your down time participating in hazardous activities. And your life insurance premiums may increase based on your more dangerous hobbies.
Those considered very risky may exclude you from coverage with certain insurance companies. But even if you just can’t stop cliff-diving, it’s worth applying for coverage.
9. Do I need to get a medical exam to buy life insurance?
Not necessarily. The life insurance industry is working to make buying life insurance easier and this includes eliminating the medical exam for qualified applicants.
If you want to get life insurance and not have to take a medical exam, when you run term life insurance quotes on Quotacy, choose the insurance company SBLI. If you’re 49 years of age or younger and only looking for coverage amounts of $500,000 or less, this may be a good option for you.
Some other companies we work with have accelerated underwriting processes as well (a.k.a. no exam necessary) but as of now you don’t find out if you qualify until after you apply and their underwriters evaluate your application. Learn more in our blog here: What Is No Exam (Accelerated Underwriting) Life Insurance?