Life & Term Life FAQ

How much Life Insurance is enough?

If you have a family, many experts recommend that you need an amount equal to 10 times your annual salary. However, these 'experts' won't be around to help out your family if they are wrong. Only YOU can determine what you would want your family to have. For this reason, and because life insurance (when purchased carefully) is extremely inexpensive , many people own larger amounts.

How do I apply?

Generally, we handle the entire process right over the phone. Our service representatives will ask you the questions on the appropriate application form. Then, the completed forms are sent to you for review and signature. We even provide you with a pre-addressed, postage-paid return envelope.

Will I need a medical exam to qualify?

In most cases, an exam is required. If so, it will be done at the expense of the insurance company, at a time and place convenient for you -- usually right in your home. The exam is usually conducted by a licensed paramedic or medical doctor, and generally involves a blood test, urine specimen, blood pressure reading, height and weight measurement, and a series of questions about your health history. The whole process takes about 20-30 minutes.

When does my coverage begin?

Although most companies provide some temporary conditional coverage during the application process (assuming the conditions are met), this temporary coverage is limited in time and amount. The availability, amount and conditions vary from company to company. If you are replacing existing coverage, you should never drop your existing coverage until your new policy has been approved, and your first premium has been paid.

Do I need to send a check with the application?

If you remit the first premium along with your application, most insurance companies will provide limited temporary conditional coverage during the application/underwriting process. However, there is no requirement that you submit a check with your application. The premium can be paid once the policy has been approved.

What financial criteria is used in selecting a safe insurance company?

There are a number of ways in which to evaluate the financial strength, performance, and integrity of a life insurance company. At Richard Whitaker Insurance Services Inc., we maintain a separate database of financial information about several hundred life insurance companies. We only monitor the rates from insurance companies with a proven track record of financial strength, integrity, performance, and claims-paying ability. And, before quoting any company, we require that it have a rating of A, A+, or A++ by A. M. Best, the nations leading independent evaluator of insurance companies since 1899. As part of our service, we provide a financial profile of the companies quoted.

What about coverage on my spouse and/or children?

Most families have coverage on both spouses. There are many financial pressures on a family after the loss of either parent. Beyond the obvious final expenses, the financial strain on a family after the loss of a spouse can be significant, even if the deceased spouse wasn't working. Often the surviving spouse will take time off work, or change jobs in order to spend more time with the children. Coverage for children is also available to cover final expenses and/or to guarantee insurability for the childís future.

What is the difference between standard and preferred rates, and how do I qualify for preferred rates?

Although the qualifications for preferred rates vary from company to company, generally you must be in excellent overall health. There are strict limits on height, weight, cholesterol, blood pressure, and you must not have a history of any significant health impairments. You also cannot use tobacco in any form. You must have no history of drug or alcohol abuse, and you cannot be engaged in any hazardous activities. The specific criteria for preferred rates differ widely among the various insurance companies, and it is not uncommon for an individual to be classified as standard at one company and preferred at another. The key is finding the right company. At Richard Whitaker Insurance Services Inc., we constantly monitor each company's criteria so that we can assist you in finding a company that will have the best rates for you, based upon your specific situation.

What if I smoke cigarettes?

Rates for smokers are higher than for non-smokers. In order to qualify for non-smoker rates, most life insurance companies require that you be smoke-free for at least one year; some require longer periods. Through our extensive research of the market, we have found that certain insurance companies treat smokers much more favorably than others.

What about other tobacco use?

Believe it or not, most insurance companies treat all tobacco use including Cigars, Pipes and Chewing Tobacco in the same category as cigarettes. However certain companies allow pipe, cigar, and chew to qualify as non-smokers. This one difference alone can save you 50% on your premiums. We know which companies will do so, and will recommend only those companies when appropriate.

What happens if I become disabled?

Most insurance companies offer a rider called "waiver of premium" which provides that in the event you become totally disabled for a period of six months or longer then the insurance company will pay your premium for you until you are no longer disabled. This rider is optional and available at an extra cost, and must be chosen at the time of your application. The rider is generally not available for purchase after age 55 (60 in some cases) and, even if elected, will automatically be removed from most policies at age 60 (65 is some cases). However, if your disability begins while the rider is part of the policy, most policies provide that premiums will be waived for as long as your disability lasts, even if that period lasts beyond the age in which the rider would have been removed.

Will my policy ever be cancelled because of health reasons?

No. Your policy will never be cancelled because of a change in your health, and you will not be asked to provide evidence of good health in order to renew your policy each year. However, YOU have the right to cancel your policy at anytime .

After the initial period of guaranteed premiums, what will my insurance cost?

Each product, if renewable, has a contractually guaranteed maximum renewal premium which can be illustrated, and which is shown in your policy. This amount is the most you'll have to pay to renew the coverage.

Most insurance companies also illustrate current renewal rates, which represent the expected future renewal rates, which are lower than the maximum renewal rates. These rates are not guaranteed, and can be higher or lower than expected, but never higher than the guaranteed maximum renewal premium discussed above.

After your initial guarantee period ends, you can re-apply for new coverage and, if you qualify, you can begin a new period of guaranteed rates (in effect, a new policy), which will generally cost less than your current or maximum renewal rates. This process is referred to as 're-entering,' or 're-entry.' Since your future good health is not guaranteed, the ability to 're-enter' is not guaranteed. And, although re-entry premiums are often attractive, to illustrate such 're-entry' rates without showing the current and maximum renewal rates, and in the absence of a complete explanation (as if to imply that they are the same as renewal premiums) is universally condemned as unethical and deceptive.

Is there a money-back guarantee?

Yes. If, at any time during the application process, you change your mind for any reason whatsoever, you will receive a full refund, no questions asked. This guarantee continues until ten full days after your policy is delivered to you.