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General Questions 

General Issues

Policy Issues

Underwriting Issues

How do I pay for my life insurance?
You can select from a variety of options including annual, semi-annual, quarterly, or monthly payments. Also, most companies allow you to have your premium automatically deducted from your bank account or charged to your credit card.

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How does PrimeQuote save me money on life insurance?
Competition between life insurance companies and the increasing life span of the average American has caused term life insurance prices to decrease dramatically over the last 10 years. Prices can vary by hundreds of dollars a year between one company and the next. Our computer system allows us to shop through a list of nearly 200 insurance companies to find a policy that matches your needs at the best value.

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What if I already have life insurance?
Feel free to get a quote from us. If we find you a similar policy for less money you can replace the policy you currently have. However, it usually takes 4-6 weeks to process a new policy so be sure to keep your previous policy until your new one arrives. In other words, don't cancel your policy just because the quote we give you has a lower premium than the premium on your current policy. Instead, wait until you have applied for and qualified for the term life quote we send you.
Also, please be advised that there may be disadvantages and/or penalties involved when replacing existing life insurance coverage, and you will be required to sign a notice of replacement depending on your state's insurance regulations.

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What if I decide to purchase one of the policies PrimeQuote finds for me?
Simply call us toll-free at 1-888-600-3600 and we will send you an application for any policy that we quoted for you or you may fill out your application on-line and instantly download the application. After you apply we will be here to personally guide you through the process of obtaining your life insurance. If you like what you see when you receive a quote from us please purchase the policy through PrimeQutoe. By having people purchase their life insurance through us, we are able to continue offering the free services available at this web site.

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What if I receive my policy, but am not satisfied and want a refund of premiums paid?
Law requires that insurance companies provide consumers with a "free look" period of anywhere from 10 - 20 days to look over the policy before being committed to the premium you have already paid.

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What insurance companies does PrimeQuote shop from in order to generate a term life insurance quote for me?
We shop from a list of companies including names like CNA, Zurich Kemper, and Prudential along with other lesser known but equally sound companies. All of the companies are rated A++ to B+ (Superior to Very Good) by A.M. Best Company. Also, PrimeQuote is completely independent from every insurance company and therefore always gives you unbiased policy information.

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What is term life insurance?
Term Life Insurance provides insurance protection for a specified period of time. Many policies provide guaranteed premiums for anywhere from 5 to 30 years. Term Life Insurance provides no build up of cash values.

Two common characteristics of term life insurance include Renewability and Convertibility. Most policies are Renewable without having to prove insurability until a certain age (Usually between 90 - 100). In addition, policies can be converted to a different policy the company offers for a certain period of time.

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What is the difference in level, decreasing, and increasing term life insurance?
Level Term Life Insurance provides a death benefit that remains the same throughout the length of the term.

Decreasing Term Life Insurance provides a death benefit that decreases each year throughout a specified term. Decreasing term life insurance is typically used to protect the value of a loan. For instance, insurance used to protect a mortgage could decrease every year at the same rate as the amount owed on a mortgage loan.

Increasing Term Life Insurance provides a death benefit that increases each year throughout a specified term. This is typically purchased by individuals who believe their insurance needs will be greater in later years than they are at present.

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What is Whole Life Insurance?
Whole life insurance offers insurance protection for the whole of life (or up to age 100) Whole life insurance also builds cash values as the policy matures. At age 100 the policy would be considered mature because the cash values would equal the death benefit. The policyholder is entitled to the cash value of the policy at any time. In addition, the policy holder can choose to take out loans against the cash value or use it to pay-up premiums. Whole life insurance usually does not provide as much protection per dollar of premium as term insurance, but that is due to a whole life policy building a living benefit through its cash values.

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Who provides service after I become a policyholder?
We will provide you with all of the personal service you need after you become a policyholder. Simply call our policyholder service department for any information regarding your policy.

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Will my coverage be effective while I'm waiting for my policy to arrive?
After you submit your application and first premium payment, some companies provide you with temporary conditional coverage until your policy arrives. We will explain your conditional coverage options when you apply for a policy.

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Should I name a minor as a beneficiary?
Typically life insurance companies will not pay settlements to minors because they are not legally bound to contracts. In most cases, settlements would be paid to a legal guardian or a trust.

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What are Settlement Options in a life insurance policy?
Settlement options are the various methods death benefits can be paid-out to the beneficiary. They include lump sum pay-outs, and various installment methods.

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What is a Contingent Beneficiary?
The contingent beneficiary has claim to any death benefit if the primary beneficiary dies before or at the same time as the policyholder.

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What is a Guaranteed Insurability Rider?
This rider guarantees that on a specified date in the future the insured may purchase additional insurance without having to prove insurability.

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What is a Rider to a Policy?
A Rider is an additional benefit added to a policy, usually for an increased premium.

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What is a Waiver of Premium Rider?
This rider provides that in the event of total disability as defined by the policy, premiums for the policy will be waived for the duration of the disability. Many policies have waiting periods before the benefit kicks in. For instance, a policy may require that an individual be totally disabled for six months before waiving premiums.

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What is an Accelerated Death Benefit Rider?
This rider provides for early payment of a death benefit if an insured is stricken with a terminal illness as defined by the policy and is given less than 6-12 months to live. Many policies provide this option at no cost to the insured. The amount payable before death is usually limited to 50 - 75% of the true death benefit.

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What is an Accidental Death Rider?
This Rider provides an additional death benefit if death occurs from accidental causes. The accident must be defined by the policy, and usually death must occur within 90 days of the accident. In addition, death resulting from illegal activities, illness, war, and suicide are usually excluded.

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What is the Incontestability Clause of a life insurance policy?
With this clause the insurance company agrees not to use as a defense against a claim any error, concealment, or misstatement on the part of the policyholder after the policy has been in force for a specific period of time, usually 2 years.

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What rights do the owner of a life insurance policy have?
The owner of a policy is entitled to certain rights as defined in the policy. These include the right to assign or transfer the policy, the right to select and change the payment schedule, beneficiary, and settlement option. In the case of cash value insurance the owner has the right to receive cash values, dividends and the right to borrow against the policy.

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Who or what can I name as the beneficiary of a life insurance policy?
The beneficiary can be a person or an institution, such as a charity. The policyholder can name as many beneficiaries has needed. These may be an estate, a corporation, trust, or any other legal entity.

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Will my creditors have first rights to any death benefit that is paid-out?
No, once the insured dies the proceeds of a life insurance policy belong solely to the beneficiary.

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Do I have to take a medical exam in order to qualify for life insurance?
A medical exam is required if you are looking for a low premium on your life insurance. The exam is done by a nationally recognized paramedical facility and can be set-up at your convenience in your home or place of work. Some insurance companies offer what is known as Guaranteed or Simplified Issue life insurance which does not include a paramed exam. Typically premiums for these products are higher since you do not have to go through the inconvenience of a medical examination.

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What entails the underwriting process of a life insurance application?
The underwriting process is the act of evaluating known data to determine how an individual will be rated (preferred, standard, or sub-standard).

The underwriting process can take up to 10- 12 weeks sometimes because of all of the different sources of information necessary to be collected in order to classify an individual's risk. These sources include: the initial application, medical exams, phone interviews with the applicant, inspection reports, records from doctors, motor vehicle reports, the Medical Information Bureau, and the agent.

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What is an Attending Physicians Statement (APS)?
This is the term for medical records ordered by an underwriter. They are used to show more detailed explanations on a proposed insured's health status.

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What is an Inspection Report?
These are ordered by an insurance company in order to provide financial or moral information on a proposed insured. They are usually performed by an independent investigating firm. The detail of the report usually grows as the face value of a policy increases.

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What is the difference in Preferred and Standard rates?
Preferred rates are the best rates offered by an insurance company. They are for non-smokers and smokers in good health. Personal factors such as past health history, family medical history, height, weight, cholesterol level, lifestyle, etc. will determine whether you qualify for preferred or standard rates.

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What is the Medical Information Bureau?
This is a non-profit trade association which maintains medical information on applicants for life and health insurance. The MIB has 650 member companies that write 80% of the health insurance and 99% of the life insurance policies in the U.S. All information reported to the MIB is reported in code to protect the privacy of an individual. In addition, the report does not indicate any action taken by another insurance company, nor the amounts of life insurance requested. Also, an insurance company is not allowed to decline an applicant based solely on information contained in an MIB report.

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Will my premiums rise if my health changes?
No, your premium is guaranteed to stay the same throughout the length of your term no matter what happens to your health.

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