Inside Tips On Term Life Insurance
The following, are some inside pointers, tips and hints that can help you if you’re thinking about getting a term life insurance policy. Bear in mind, there are many types of life insurance. This article is going to primarily focus on Arizona term life insurance.
What is Term Life Insurance?
Term policies are life insurance for a duration of time, such as 10-30 years, then the policy expires and you get re-insured.
How Do I Qualify for Arizona Term Life Insurance?
Firsty, term life insurance requires that you are quite healthy. Typically, you need to be on two prescription medicines or less. There are some exceptions when you can be on three. But if you are taking four or more prescription medicines, it’s not very likely that you’re going to be able to get a term policy.
The other health requirement is a clean medical history. Most term life insurance providers look back at least 10 years and usually 15-20 years. We are human! It’s perfectly fine if you have visited the doctors (In fact, routine checkups are a bonus) and taken antibiotics or had temporary, occasional prescriptions for minor situations. However, there are many medical diagnoses that you can be declined for.
How does diabetes impact getting approved for term life?
There are many common diagnosis such as diabetes that are A-Okay. However, taking Insulin shots can be a bit of a term life insurance hurdle.
If you’re taking something that helps your body to create its own insulin, that is likely fine. Another way to look at it is “If it’s a shot, it’s probably not”.
Lastly, regarding diabetes, is your age when first diagnosed with diabetes, or started taking a diabetes medicine, such as Metformin. It gets very difficult to get approval if you are diagnosed at an early age in your life, such as before the age of 30.
Other issues that might complicate term life insurance approval
Your your height and weight, may come into account. You don’t have to be an Olympic sprinter like Michael Johnson to get approved for term life insurance.
Nowadays it’s normal to have have some extra meat on our bones. So don’t worry about that too much.
However, if you are extremely overweight, that will reduce your options. If this is your situation, chat with your agent. Just give us a call and we will be happy to quickly run your height and weight and see what your options are.
How Do Some People Get Term Coverage that is SO CHEAP!?
There ARE ways to get exceptionally low Arizona term life insurance prices. Again, you have to be very healthy.
In fact, it’s all going to come down to health for this reduced price term. If you take ZERO prescription medicines and doctors have never warned you about your high cholesterol, high blood pressure or other health concerns; and you weight is not high, for your height, this might be an option for you.
If a doctor has recently told you “Hey, your blood pressure is amazing” or “Your cholesterol is nice and low. Everything looks really good!” Then you are a prime candidate.
If this is the case, you can likely get what’s called a “fully underwritten” term policy. That’s where a ParaMed comes to your home on the insurance company’s dime when it is convenient for you, they do a blood draw and collect a urine sample. They check your height and weight, they ask you a bunch of questions. Usually this takes about 20 or 30 minutes. The urine and blood samples go to a laboratory.
When the results come back in, as long as everything is clear, you can get an amazingly reduced price- usually 40% – 60% less than the other term life insurance options.
The highest health category possible is what you want to get. Most term life insurance companies call the highest health rating “super preferred” or “preferred plus.” The higher your health rating, the lower your price.
What The Heck Is RETURN OF PREMIUM Term Life?
Another type of term life insurance in Arizona, is return of premium (ROP) term.
This is NOT the cheapest type of term. In fact, it is the most expensive option.
Here’s why: At the end of your life insurance term (assuming you made every payment until the end, and outlive your policy), the life insurance company gives you all your money back. (Total premiums paid throughout the term)
So let’s say the cost for your R.O.P term is $125 a month. You pay this amount every month for 30 years. At the end of 30 years, they send you a check for $45,000. This amount is simply $125 x 12 x 30 years. It is every penny that you put into the policy. So R.O.P terms are an excellent choice, if your budget allows. Depending upon your age, build and health, R.O.P may only be 10%-20% higher cost than non-R.O.P.term life insurance policy.
How does AGE effect term policies?
For obvious reasons, term policies cost a lot more, if you wait to get them, until you are older.
Past the age of about 55, Arizona term life insurance policies start to cost more. If you are 55+, still give it a good hard look. If you are extremely healthy, the price can come down if you get a fully underwritten policy.
Perhaps you only need $100,000 to $150,000 coverage, in which case it still might be affordable for you. But if you’re looking for a $300,000 – $500,000 term policy, and you’re past the age of 55, it is going to be expensive.
Certainly have your exclusive PWI agent price this for you to see what your options are.
Worse-case, if you cannot get term, consider a whole life insurance policy.