The majority of Term Insurance Quotes Online are BOGUS!
Well, that’s not exactly true – BUT TERM INSURANCE QUOTES are MISLEADING!!
The majority of financial experts and just about every life insurance professional will encourage the average American to get online term life insurance quotes.
Exposing The Myths
It’s a terrific idea in principle, but 95% of quotes received are inaccurate.
I am exposing the top 6 myths surrounding term insurance quotes. This vital information will better prepare you to create a realistic budget, so you will not receive sticker SHOCK when you obtain the actual quote from a life insurer.
So, here they are, pay close attention!
Myth 1. Your Term Insurance Quotes Online Are Accurate
Did you know that only 5% of Americans Receive accurate term insurance quotes online? So, what’s the NUMBER 1 REASON for these misleading quotes?
ALL TERM INSURANCE QUOTES found online are generated for a “PREFERRED BEST” health rating.
It's estimated that only 5% of Americans looking for online term quotes will qualify for a “Preferred Best – Non Smoking Rate”!!
Liran Hirschkorn, in his article “Understanding Life Insurance Health Ratings” , describes the “Preferred Best” health rating classification as:
Sometimes referred to as preferred elite, super preferred, or preferred plus, this category is associated with excellent health, a normal weight and height profile, and no other factors that might suggest increased health risk such as the death of a family member due to heart disease before age 60, for example.
Even though you are a non-smoker, young and healthy, you might discover that you don’t qualify for the highest rating when you finally apply for term life insurance.
Your classification might simply be a factor you're unaware of:
A lesser rating is often linked to a family member that has a negative medical history. For example, if your mom died at a younger age because of cancer this would be taken into consideration.
The truth is, life insurers take family history into account when they underwrite a policy.
Another cause for not obtaining the best possible rate might be due to your height to weight ratio. Suppose you are young and healthy but slightly overweight, and on the shorter side.
The underwriter will consider the possibility that down the road you might succumb to health issues such as high blood pressure and/or high cholesterol levels. These factors contribute to medical problems later in life, such as cardiac ailments or the possibility of developing type 2 Diabetes.
The majority of Americans looking to compare quotes for term life insurance do consider minor health issues they may have.
You can still get a “Preferred” rating with controlled medical issues, which is the 2nd best category. If your pre-existing medical condition happens to be slightly more severe, you may receive a “Standard Plus” rating which is the 3rd best health category.
Myth 2. Online Term Insurance Quotes Apply to Your Individual Circumstances
Your personal medical history makes a huge impact on the ultimate quote you receive. Online quote engines default into providing Preferred Plus ratings.
To give you some insight, the majority of life insurers use between 12 – 16 rating classifications when they underwrite your application! How underwriters rate you depends on your replies to a questionnaire and the results of your medical exam.
There are 4 Main Rating Classifications
If you fall into the below listed classifications, according to insurers, you should enjoy a normal life expectancy in relation to your respective gender.
- Preferred Plus
- Standard Plus
As Jay MacDonald , “Understanding Life Insurance Ratings” states:
What do these risk classes actually mean? And more importantly, how much can you save on your premium by improving yours? The answers lie in the often proprietary methods that life insurance companies use to crunch your personal data and identify the financial sweet spot between their risk exposure and your posthumous payout.
To qualify for these ratings, you have to be in average to better than average health. Risk factors that may impact whether or not you qualify are:
- high risk occupation
- negative family medical history
- a bad driving record
- recreational drug usage
- travel to high risk countries
These factors might not preclude you from the top 4 classifications, but they will impact your final rating.
What If I Smoke?
There are other separate rating classifications for smokers. A limited number of insurers may qualify a cigar smoker or the occasional cigarette smoker (less than 12 per year) for the above listed top 4 ratings.
Most smokers and users of tobacco products have their own rating classification system. As you might expect, smokers can expect to pay more for life insurance.
Generally speaking, finding an insurer to give the occasional smoker, non-smoking rates can be tough. Most insurers lump occasional smokers into the smokers classification. If you use an independent agency, such as Huntley Wealth, you have a stronger chance of qualifying for a better rating. We know which insurers have more lenient underwriting guidelines and will be able to nail down the best possible rate for you.
What If I Fall Below the Standard Rating Classifications?
If you fall below the standard rating classification life insurers use what they refer to as a “Table Rating” system.
Table ratings break down into a variety of other classifications and generally measure the type of health issue you have against how well it is has been controlled. They also take into account whether you have been symptom or disease free and whether or not you are following a treatment process.
There are as many as 16 different table ratings used by life insurers. Bear in mind, they vary significantly from company to company.
Each change in the top 4 ratings and table ratings translates into an additional 25% being tacked onto the premium you pay.
Myth 3. Life Insurance Is Unaffordable If You Have a Medical Condition
Far too many Americans don’t even think of applying for life insurance if they have a health condition.
They don’t bother applying for a policy because they believe life insurance will be too expensive, or they will not be approved.
This is another serious myth which needs to be addressed – because for many health conditions, this is no longer true.
A person with a pre-existing medical issue, which is under medical control and does NOT IMPACT HIS OR HER LIFE EXPECTANCY, may qualify for the top 4 ratings.
As Alice Holbrook states in “How to Get Life Insurance If You Have a Medical Condition” :
Medical advances have improved outcomes for many patients and, in turn, led to better rates. If you’re in remission, or your chronic condition is well-managed, you might be able to score standard or even preferred rates.
What About Advances in Medicine?
Most people with fair to serious medical conditions live longer. As treatment methods improve, many pre-existing conditions have a much better prognosis.
In terms of adjusting underwriting guidelines, some life insurers are slower to adapt the results of medical advances and how diseases are responding to treatment, while others are more cutting edge in their approach.
The trick is to locate those companies which are more likely to approve you for a policy. Equally important is to find companies which will give you the cheapest rates.
Myth 4. No Medical Exam Life Insurance Is a Good Option for Most Folks
Don’t fall into the no medical exam trap!
No medical exam advertisements are all over the place. They claim that you can get easy approval and inexpensive premiums.
It’s true no exam policies can help get you approved quickly. But, if you're young and in good health, they are a bad fit.
No exam life insurance COSTS A LOT MORE than policies with an exam.
As Jeff Rose points out in “Should You Buy No Exam Life Insurance” ,the reason why a no exam policy costs more is because:
…the insurance company does not have to go through the traditional underwriting procedures, they are taking a higher risk by insuring you. Because of that, they are going to have to charge a little bit more for the coverage. That being said, simplified issue insurance products aren’t super-expensive, but there’s no question that going the traditional underwritten route will save you money.
No Exam Policies Are COSTLY
A no exam policy will typically cost as much as 30% MORE than what you would pay for one which requires a medical exam.
…and to top it off, the dollar amounts available are a LOT LESS than what you can find for those policies that do require an exam.
There 6 different types of no-exam policies, which should only be used for very specific situations. Beware. The cost may VARY SIGNIFICANTLY.
You should only consider a no exam policy if you are:
- Have a serious medical condition
- Have a major aversion to needles
- Need life insurance immediately, for example to fulfill requirements for a business loan
DO NOT APPLY for a no exam policy without using an independent agent to help you. They will be able sift through the options to find the most suitable and affordable policy for your circumstances.
Call us here at Huntley Wealth so we can discuss your unique situation to ensure you are getting the best fit.
Myth 5. Online Term Insurance Quotes are the Same for Smokers & Non-Smokers
Busted! This is NOT TRUE!
Although it’s true that full time users of tobacco products, e-cigarettes and marijuana users pay more – YOU CAN SAVE A LOT OF MONEY!
The answer is easy. Not all insurers are the same. You can save money through comparison shopping, which we can do here for you at Huntley Wealth.
Here’s a quick example which I revealed in an article called “Life Insurance for Smokers”
Say a 50 year old healthy male smoker needs $500,000, 30 year term. Nationwide comes in at #1 at $6,165 annually. Assume this same man favors Mutual of Omaha for some reason, and only got a quote from Mutual of Omaha, and no other company. Mutual of Omaha is #10 on the list, charging $6,838 for the same 30 year policy. That’s $673 more, or an 11% difference! You see, if you need life insurance for smokers, it pays to shop around.
If you do not use an independent agent, rates for the occasional user can be even more dramatic. Many insurers lump any form of smoking into their smoker’s classification, and charge smoker’s rates.
The Good News?
There are insurers who differentiate between smoking a few times a year and being a regular smoker. These companies will consider you for the “NON-SMOKERS” rating category.
That’s right! You may qualify for the same health rating as a non-smoker and enjoy the same cost savings they do.
Here at Huntley Wealth, we can hook you up with the most affordable term insurance quotes for full time smokers.
…and, we will provide occasional smokers with quotes from insurers who may be able to give you NON-SMOKING rates.
Myth 6. Your Can Buy Term Life Insurance Online Without an Agent
You might be under the misunderstanding that all you have to do is get a quote and contact the company which gave the lowest rate to start the application process.
Because of the very complex underwriting guidelines life insurers use, you might think you will actually be given the rate you originally received. Even if you are provided a rate in the ballpark of the initial quote, it may not be the lowest term insurance quote available.
There Are Different Types of Life Insurance Agents:
CALL CENTER AGENTS
Call center agents focus on making sales, not providing services. They often restrict the companies used and provide quotes from only a select few. This means you won’t get the best possible rates.
To top it off, they do not provide follow up or ongoing services. Once they sell you a policy, they move on and you never hear from them again.
Captive or Company Life Insurance Agents
Captive or company life insurance agents only sell policies for 1 or maybe 2 particular companies. Agents are pressured to push products that boost sales for the insurer, which means your best interests are not served.
The biggest sales pressure they face is promotion of whole life insurance, which most of you should avoid like the plague.
Independent life insurance agents sell a number of different products and are not tied to one company, so they have access to multiple rates. Which means they have the tools to pinpoint the insurer that is best for your specific set of circumstances. There are a number of large agencies that are regularly advertised such as:
This type of independent agency is very similar to Huntley Wealth.
…but there is ONE BIG Difference between these agencies and us.
HUNTLEY WEALTH SPECIALIZES IN ‘HIGH RISK LIFE INSURANCE.
When it comes to pre-existing health conditions, we locate and provide better term insurance quotes than our competitors. Our knowledgeable agents really understand health conditions and which life insurers will give you the best rating. This enables us to provide you with the lowest premiums to save you money.
Our sole goal is to find all our clients affordable coverage for any pre-existing medical condition.
LIFE INSURANCE COMPANIES
You can also purchase your life insurance policy directly from the company. You may of heard of some of these insurers:
- Zander Insurance
We represent a few of these companies such as Prudential and MetLife. However, we strongly recommend that you NEVER BUY LIFE INSURANCE DIRECT FROM A LIFE INSURANCE COMPANY!
Why Shouldn't I buy My Policy Directly from a Life Insurance Company?
It’s unlikely that you will obtain the most affordable rate. Choice equals savings and you don’t get this when you buy a policy directly from a life insurance company.
Each company only offers certain products and dollar figures. You might not even be able to purchase the policy you require for your particular circumstances.
You don’t know what their underwriting qualifications are. This is especially important if you have an underlying medical condition. Your application may even be declined.
There are other sites where you can get online insurance quotes such as:
Although these sites won’t directly sell you term insurance, they have agreements with 3rd parties who compensate them as “lead partners”. To be honest, they generate leads for specific insurers so be careful when you provide your contact information.
WHY PICK AN INDEPENDENT AGENT & WHY HUNTLEY WEALTH?
Independent life insurance brokers, such as Huntley Wealth and Insurance Services, are your best bet for quality and continued service.
Independent insurance agents are very knowledgeable about the industry and the different companies that exist in the marketplace. They have worked with customers in the past and have a good idea of which companies have the best track record when it comes to pleasing their customers. They can narrow your options down and help you choose between the best insurance companies in the market.
A really good independent agent works for you and strives to build a lasting relationship. We will guide you through all the steps without resorting to high pressure sales tactics.
At Huntley Wealth We:
- Provide boutique service and our only goal is to get our clients affordable coverage.
- Go the extra mile by providing you with screenshots of the term insurance quotes we receive – so you will be able to easily verify the information we share.
- Specialize in knowing which insurers are more easy going in their underwriting guidelines.
- Have access to dozens of the top rated life insurers, so you know the companies we use are financially strong and will always be able to honor their claims.
Remember to keep in mind, the companies offering the lowest term insurance quotes online don’t necessarily translate into the lowest rate offered to you. The quote generated might appear much lower down in the results offering the cheapest possible premium for your particular circumstances.
4 Helpful Tips For Navigating Online Term Insurance Quotes
Here, at Huntley Wealth, we are happy to offer our best advice, tips and tools to help you find term insurance quotes to find you affordable term life insurance.
1. Ballpark Sample Quotes By Age
Now that you know the myths of term insurance quotes, let me provide you with some links to our blog pages which provide “ballpark” sample term insurance quotes by age.
Term Life Insurance Quotes at 20-29 Years Old
|20 Year Old Male||$14.17||$23.01||$30.45||$54.81|
|21 Year Old Male||$14.17||$23.01||$30.89||$55.68|
|22 Year Old Male||$14.17||$23.01||$31.32||$56.55|
|23 Year Old Male||$14.17||$23.01||$32.19||$58.29|
|24 Year Old Male||$14.17||$23.01||$33.50||$60.90|
|25 Year Old Male||$14.17||$23.01||$34.80||$63.51|
|26 Year Old Male||$14.17||$23.22||$36.54||$66.99|
|27 Year Old Male||$14.26||$23.44||$38.28||$70.47|
|28 Year Old Male||$14.26||$24.20||$40.46||$74.82|
|29 Year Old Male||$14.35||$24.42||$42.68||$77.88|
(Life Insurance Preferred Quotes based on healthy, male, non-smoker for 30 Year Guaranteed Level Term, as of 7/18/16, subject to change)
Term Life Insurance Quotes at 30-39 Years Old
|30 Year Old Male||$14.35||$24.64||$43.15||$79.64|
|31 Year Old Male||$23.55||$23.55||$43.31||$79.64|
|32 Year Old Male||$14.96||$23.76||$43.31||$80.72|
|33 Year Old Male||$15.22||$23.76||$43.75||$81.37|
|34 Year Old Male||$15.57||$24.18||$44.19||$82.25|
|35 Year Old Male||$15.84||$25.01||$45.94||$84.92|
|36 Year Old Male||$16.72||$26.26||$48.56||$89.73|
|37 Year Old Male||$17.69||$27.93||$52.06||$97.31|
|38 Year Old Male||$18.83||$29.80||$56.37||105.74|
|39 Year Old Male||$19.86||$32.30||$61.69||$115.38|
(Life Insurance Preferred Quotes based on healthy, male, non-smoker for 30 Year Guaranteed Level Term, as of 7/18/16, subject to change)
Term Life Insurance Quotes at 40-49 Years Old
|40 Year Old Male||$12.89||$21.47||$38.50||$69.63|
|41 Year Old Male||$13.84||$22.93||$40.43||$76.55|
|42 Year Old Male||$14.88||$25.01||$44.59||$85.20|
|43 Year Old Male||$16.09||$29.09||$51.63||$93.85|
|44 Year Old Male||$17.56||$30.22||$56.44||$103.37|
|45 Year Old Male||$19.29||$32.72||$61.42||$112.84|
|46 Year Old Male||$20.50||$35.01||$67.38||$124.13|
|47 Year Old Male||$21.88||$37.93||$73.06||$135.19|
|48 Year Old Male||$23.36||$43.22||$79.63||$147.44|
|49 Year Old Male||$25.00||$46.55||$86.19||$162.75|
(Life Insurance Preferred Quotes based on healthy, male, non-smoker for 20 Year Guaranteed Level Term, as of 7/18/16, subject to change)
Term Life Insurance Quotes, 50-59 Years Old
|50 Year Old Male||$15.66||$30.47||$53.55||$100.35|
|51 Year Old Male||$16.87||$33.14||$58.50||$100.35|
|52 Year Old Male||$18.25||$36.53||$63.90||$117.81|
|53 Year Old Male||$19.46||$39.38||$68.85||$127.71|
|54 Year Old Male||$20.85||$42.88||$73.80||$138.51|
|55 Year Old Male||$22.58||$47.84||$78.30||$149.85|
|56 Year Old Male||$24.48||$50.97||$90.45||$165.51|
|57 Year Old Male||$55.78||$55.78||$102.60||$184.63|
|58 Year Old Male||$28.46||$59.54||$108.92||$204.23|
|59 Year Old Male||$30.53||$64.97||$119.21||$223.60|
(Life Insurance Preferred Quotes based on healthy, male, non-smoker for 10 Year Guaranteed Level Term, as of 7/18/16, subject to change)
Term Life Insurance Quotes at 60-69 Years Old
|60 Year Old Male||$32.78||$70.93||$130.50||$244.37|
|61 Year Old Male||$37.02||$80.89||$150.81||$293.31|
|62 Year Old Male||$41.61||$91.69||$172.46||$324.81|
|63 Year Old Male||$46.45||$107.33||$196.00||$369.25|
|64 Year Old Male||$51.29||$119.68||$220.58||$417.36|
|65 Year Old Male||$56.31||$128.19||$244.36||$470.13|
|66 Year Old Male||$62.80||$142.13||$273.65||$522.03|
|67 Year Old Male||$70.76||$156.92||$301.78||$570.70|
|68 Year Old Male||$78.80||$178.27||$344.23||$653.45|
|69 Year Old Male||$87.19||$200.16||$388.94||$721.88|
(Life Insurance Premium Quotes based on healthy, male, non-smoker for 10 Year Guaranteed Level Term, as of 7/18/2016, subject to change)
Term Life Insurance Quotes at 70-75 Years Old
|70 Year Old Male||$95.67||$225.06||$433.65||$799.91|
|71 Year Old Male||$109.16||$253.14||$493.02||$938.96|
|72 Year Old Male||$117.12||$284.37||$526.35||$1,005.56|
|73 Year Old Male||$130.53||$317.89||$576.96||$1,105.04|
|74 Year Old Male||$152.33||$371.86||$677.73||$1,286.69|
|75 Year Old Male||$185.63||$417.30||$801.46||$1,555.27|
(Life Insurance Premium Quotes based on healthy, male, non-smoker for 10 Year Guaranteed Level Term, as of 7/18/16, subject to change)
2. The Huntley Wealth Life Insurance Calculator
It’s important to nail down how how much life insurance you want to buy. It is imperative that you buy the right amount.
If you purchase too little life insurance, you will not have enough, in which case your family will run into financial difficulty. On the other hand, you don’t want to buy too much because you will be spending hard earned cash which could be better used elsewhere.
To find that “sweet spot” for buying the right amount of life insurance to meet the needs of your family, use our LIFE INSURANCE CALCULATOR to help you decide!
3. Choosing The Length of Your Term Life Insurance Wisely
When the time comes to purchase your life insurance policy, the first step is to choose the right term length. Life insurance is purchased in chunks of time which are known as terms.
The terms available vary from company to company. Here are some examples:
- 1 Year Renewable
- 5 Year Term
- 10 Year Term
- 15 Year Term
- 20 Year Term
- 25 Year Term
- 30 Year Term
- Age Specific
A few companies allow you to customize the term length for an odd number such as 17 or 23 years for example. So, you have many options when it comes to finding the right type of term for your particular needs.
You may also choose to buy several term policies together to cover different purposes for different term lengths. This is known as layering your policies.
Choosing the right term length is very important. Too short a term may require you renew the policy when it expires. Life insurance becomes increasingly more expensive as you age and your health may decline over time. This may cause you problems down the line.
You do not have to worry if you buy a term policy for too long a period, because you can always cancel the policy when you no longer need it.
Consider your term length carefully!
4. Know the Common Uses for Term Life Insurance
Term life insurance provides a valuable financial safety net. Here are some of the most common reasons people use it:
- Income Replacement
- Personal debts such as loans and credit cards
- Charitable donations
- Pay for children’s college education or for co-signing a student loan
- Provide a financial legacy
- Funeral and Burial Costs
- Estate planning to provide liquidity and cover estate taxes
- Business planning
You decision to buy life insurance will involve taking into account all your needs and financial obligations.
Huntley Wealth's Top 3 Life Insurance Company Picks
Here is some information about the “Top 3 Term Life Insurance Companies” we use at Huntley Wealth. I am going to share the reasons we characterize them as our top 3 life insurance carriers and will provide you with PDF links to their brochures, so you read more about these excellent companies.
1. Prudential Life Insurance Company
- They are one of the most lenient life insurers when it comes to underwriting guidelines
- They specialize in some medical and health issues that other companies will not insure
- They are an awesome choice for tobacco users who aren’t cigarettes smokers, for occasional users of cigars, chewers, e-cigarette users & occasional marijuana users
- They are one of the best companies for non-U.S. residents or permanent residents
- They are a terrific company for seniors over age 60
- They are one of the easiest and most responsive companies to work with.
Want to learn more about Prudential Life Insurance and what they offer? Then check this handy PDF Prudential Product Brochure!
2. Protective Life Insurance Company
- They have very competitive rates especially for those 50 years and older
- They have lenient underwriting policies
- They provide Coverage to age 121
- They offer term life policies under $100,000
- They are our number 1 choice for those with heart disease, elevated cholesterol levels and diabetes
- They provide excellent policy options for seniors
Want to learn more about Protective Insurance and what they offer? Then check this handy Protective Custom Choice UL PDF!
3. Banner Life Insurance Company
- They provide some of the lowest premium rates available
- They offer very aggressive underwriting and provide credits
- The generate excellent rates for those with a variety of health conditions such as Epilepsy
- They are very lenient with seniors using maintenance medications
Want to learn more about Banner Life Insurance and what they offer? Then check this handy Banner Life & William Penn Life Value Term 20 and 30 PDF!
Need Information or find a term insurance quote right now? Call us today at 877 – 443 – 9467 for a term insurance quote because we can help!
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