Term Life Insurance Digest

When it comes to term life insurance quotes, it’s important to understand what they are, how they are derived, and how they can change.  They are after all just quotes; they are not guaranteed rates.

Once you have offered basic information to your life insurance agent or an online life insurance website, a quote can be given.  This is a quote of real rates based on the information you have provided.  The reason it is not guaranteed (unless it’s a guaranteed issue life insurance policy that is being quoted to you) is because the life insurance carrier will most likely need to send your application through underwriting.  Underwriting is the process that determines which health class you fit into.  Rates are based on the health class of the individual applying.  If after underwriting you fit into the same health class that you were quoted, then the rates will be the same as the quote.

If you do not fit into the same health class you were quoted, then the rates will be different.  Having an agent that knows how to ask the right questions will help you get a term life insurance quote that is less likely to change after underwriting.

This entry was posted on Monday, November 10th, 2008 at 2:09 pm and is filed under Term. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.