Term Life Insurance FAQ

What are the general guidelines that determine preferred non-smoker rates?

No tobacco usage of any kind in the last 3 years No history of, or current treatment for, high blood pressure, cancer, diabetes, mental or nervous disorders, or disorders of the heart, lungs, liver, or kidneys No incidence prior to age 60 of cardiovascular disease in immediate family (parents, siblings) All values should be favorable, including cholesterol, triglycerides, and lipids No abnormal findings in urinalysis; presence of nicotine may disqualify you for preferred class Height and weight must comply with established underwriting guidelines No convictions for reckless driving or driving under the influence of alcohol or drugs in the past 5 years No participation in hazardous activities or avocations that require rating Private pilots may be preferred but may have flat extra premium or exclusion No residence outside U.S. or Canada

What is the "guarantee period"?

Rate guarantees vary by product and by company.  The guarantee period indicates the number of years the premiums are guaranteed not to change.

What does "age basis" mean?

Age basis indicates how your age will be determined for premium calculations. Nearest indicates that either your next or last birth date will be used based on which you are nearest to.  Last indicates that only your last birth date is used.

What does "renewable" mean?

The right, for a specified period of time, to renew your insurance coverage without providing medical information.

What does "convertible" mean?

The right, for a specified period of time, to exchange your insurance coverage to a permanent form of insurance, regardless of health or insurability.

What are the financial ratings by rating service?

A.M. Best Duff & Phelps Moody's Standard & Poor's 1. A++ AAA Aaa AAA/BBBq 2. A+ AA+ Aa1 AA+/BBq 3. A AA Aa2 AA/Bq 4. A- AA- Aa3 AA- 5. B++ A+ A1 A+