Amerisave Financial & Insurance Services, Inc.

An Independently Licensed
Full Service Insurance Brokerage

family of three in front of new house

Our Clients Say:

"Thank you for helping us with our insurance needs. I greatly appreciate the fact that you were able to get me a life insurance plan at an affordable rate!"

Bob, Auburn

Frequently Asked Questions

At Amerisave Financial & Insurance Services, we want to provide you with all of the necessary information before you choose a term life insurance policy. We have designed this section to answer the most frequently asked questions:

You are always welcome to call us at (800) 892-6550 to speak with an agent with any questions. Or to request additional information, fill out an online form now.

 

  1. What is life insurance?
  2. How much life insurance do I need?
  3. What is term life insurance?
  4. What is the difference between term life insurance and other types of life insurance?
  5. Do I have to complete a medical exam to apply for term life insurance?
  6. What lengths of terms are offered for term life insurance?
  7. What term coverage do I need?
  8. How is my insurance premium determined?
  9. What does the process involve?

 

What is life insurance?

Life insurance provides a way to replace the loss of income that occurs when someone dies. It is a contract between the insured person (you) and a company (the carrier), where the carrier agrees to pay a sum of money upon the occurrence of the insured individual's death or other event, such as terminal illness. In the untimely death of you or a family member, the insurance company would pay a specified sum of money, usually called a death benefit, free of income tax to the person or persons you name as beneficiaries.

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How much life insurance do I need?

To determine how much life insurance you need there are a number of factors that should be considered. The life insurance policy you purchased will provide money directly to your beneficiaries. To determine what your needs are, an agent will review what financial needs your family will require after your death; they include: loss of income replacement, funeral and other related expenses, pay off household debt, fund future children(s) education needs, retirement income or any other items you feel would be a burden to your family.

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What is term life insurance?

Term life insurance is life insurance that provides coverage at a fixed rate of payment for a specified period of time. If the insured passes during the term, the death benefit will be paid to the beneficiaries. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.

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What is the difference between term life insurance and other types of life insurance?

There are two types of life insurance: temporary and permanent. Term life insurance is considered temporary life insurance because it provides coverage for a specific period of time or term (terms up to 35 years). If death occurs during the term, the policy pays cash benefits to the beneficiary. However, once the term is over, and if the policy is not renewed, the coverage ceases. If death occurs after the coverage term is over, no cash benefits are paid out.

Permanent life insurance can include whole term life insurance, universal life insurance and variable life insurance. This type of insurance is for the life of the insured, the payout is assured at the end of the policy (assuming the policy is kept current) and the policy accrues cash value.

Because term life insurance premiums are generally lower than permanent insurance premiums, you can usually afford a higher level of coverage. Doing so has a potential drawback in some cases because all term policies eventually expire and you would then have to pay a higher premium based on your attained age. In these situations, money earned from investments may not measure up to the coverage the permanent policy would have provided.

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Do I have to complete a medical exam to apply for term life insurance?

Depending on the carrier and the type of policy, a medical exam is necessary. The carrier will pay for a nurse to visit your home, office or another convenient place for you to complete this exam. The examination is very quick and easy, covering your height, weight, medical history, and blood and urine testing. With these tests, the carrier looks for specific medical problems.

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What term coverage do I need?

This depends on your financial goals. You need to take into consideration how old your children are, how many years before you retire, and other factors to determine the right term length. For example, if you are looking to fund future education needs and your youngest child is 3 years old, then at the minimum term you would want to carry a 15 year. To help in the decision for your desired coverage, contact us at (800) 892-6550, or fill out an online form.

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What is the difference between guaranteed and non-guaranteed premiums?

If a term life insurance policy offers level term, it is usually one of two types. The first type is guaranteed premium level term, which the premiums are guaranteed to remain at the same level during the entire term of the policy. The second type is non-guaranteed premium level term policy, which the premiums are only guaranteed for a portion of the term period.

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How is my premium determined?

Age, height, weight, past and present medical conditions, family medical condition history and lifestyle can all affect the determination of your premium. Length of term and guaranteed premiums will also affect the amount you will pay.

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What does the process involve?

Once you’ve completed the online requests, a licensed agent from Amerisave Financial & Insurance Services will contact you to determine coverage needs. If a medical exam is required, the carrier you have chosen will set up a convenient appointment for the no-charge medical exam. The exam can take place in your home or office, and is performed by a medical professional.

Upon completion of the application and medical exam (if required), the agent will then submit the information to the carrier. Four to eight weeks are required for most companies to underwrite and issue the policy.

The entire process is quick and painless! Call us at (800) 892-6550, or fill out our online form.

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