T&C Life Insurance Company provided detailed answers to the most common questions we have received about our insurance products. For further clarifications, feel free to contact us. We proudly serve clients in Texas and other areas.
1. Do I need life insurance?
Not necessarily. If you have no children or dependents whom you support financially, you might not need a life insurance policy after all. Life insurance aims to provide a solution for those who seek income replacement, mortgage protection, estate planning, leaving a legacy, or burial expenses. However, if someone you love is dependent on you financially, you need life insurance.
2. How can I save money when buying life insurance?
Buying a term life or a combination of term and permanent insurance may help you pay a lower premium. Buying a policy early in life is also a good way to ensure a lower premium.
The older you are, the higher the premiums, and the more risk you have of developing a health condition that could increase your premium even more or disqualify you from getting coverage at all. You can read more about saving on life insurance here.
3. How does the insurance company determine my premium?
Premium rates are typically based on factors such as age, gender, height, weight, health status (including whether or not you use tobacco), and if you participate in high-risk activities or occupations.
4. What is a permanent policy?
Permanent policies are typically the best option if you are looking for life-long protection, or an option to accumulate a tax-deferred cash value. A portion of the premium of a permanent policy is used to build up a cash value. The cash value can be used in several different ways, including allowing you to take out a loan against the cash value, or paying your premium after your policy is fully paid up.
5. Once I buy the policy, will I even need to change my insurance coverage?
If you already have a policy, it will usually have a lower premium rate than a new policy you would buy. If you’re buying a permanent policy, the cash value will also be smaller for several years. Keeping all these factors in mind, it might be worth considering a new policy if you have any significant changes in your life circumstances, such as if you:
- Are recently married or divorced
- Have or adopted a child (or became a grandparent)
- Have children or grandchildren who are about to enter college
- Provide care or financial help to a child or elderly parent
- Receive an inheritance
- Retire (or your spouse retires)
- Start a business
- Change or lose your job or salary
6. What does it mean when a policy is “fully paid up?”
“Fully paid up” means that you have paid enough premiums to cover the cost of the policy for the rest of your life, and the company will use the cash value to pay your premiums until you die.
7. What happens if I miss a premium payment?
Most policies have a 31-day grace period wherein you can pay the premium with no penalty or interest. If you have a term policy and do not make the payment within this grace period, the insurance company will usually terminate the policy. If you have a permanent policy, you can authorize the insurance company to draw your premium from your policy’s cash value.
8. What are accelerated death benefits?
Some policies have a provision that allows you to collect a significant portion of the death benefit while you are still alive should you become terminally ill. The money can be used at your discretion to pay for medical expenses or even to do specific things with your family and friends while you still can. The amount you take out early will be subtracted from the death benefit payment along with interest.
9. What is a term policy?
Term insurance plans cover you for a term of one or more years, and it pays a death benefit only if you die in that term. However, even if you don’t die within the term, you have not wasted your money any more than when you buy car insurance but never have an accident.
You have bought yourself peace of mind that your beneficiaries will receive the death benefit if you should die within the term. Term policies typically offer the lowest monthly premium and are usually the best option if you have a limited budget or a temporary need. You can typically renew term policies for one or more terms even if your health has changed, however each time you do so; the premium may be higher.
There are four kinds of term policies:
- In level term policies, the death benefit amount will remain the same for the entire term. Depending on the policy, your premiums may be level or may increase over the term.
- Decreasing term policies have a death benefit that decreases over the term. Your premium will typically remain the same throughout the term. People who purchase decreasing term policies usually have financial obligations that decrease over time (such as mortgage payments or loans).
- Annual renewable term policies have a death benefit that remains the same throughout the term, but a premium that increases each year as you get older.
- Convertible term policies allow you to convert the policy into a permanent policy, typically without a medical exam or further underwriting. Generally, this does increase your premium payment and must be done before you reach age 65.
10. How much life insurance do I need?
To determine how much life insurance you need, it’s best to look at your surviving family’s immediate, ongoing, and future financial obligations, and compare that with your financial resources. Below are examples of each type of need:
- Immediate: funeral costs, medical bills, taxes.
- Ongoing: mortgage payments, utilities, food.
- Future: college tuition, retirement funds.
- Financial resources can include your partner’s income, savings, income-producing assets, and investments. Considering all these obligations and resources, the difference between the two is how much life insurance you need.
11. Am I still eligible for coverage if I have a serious health condition?
Even if you are not in top health or have a serious health condition, there are still some options available with guaranteed issue plans, although this comes at the cost of a higher monthly premium and a lower death benefit.
12. Do I need life insurance for my child?
A child’s policy can provide a saving vehicle, the ability to buy more coverage in the future without proving insurability and also pay the death benefit in the event of a child’s death, which can be used for burial expenses.
13. What is the underwriting process?
The life insurance underwriting process is a method through which carriers assess your risk based on the medical questions to conclude whether or not to approve, deny, or rate up a life insurance policy.
14. What is Mortgage Life Insurance with No Exam?
It’s life insurance protection for your mortgage that does not require any physical exam, blood, or urine tests to qualify for coverage.
You answer some health questions and your answers will determine if you qualify. After requesting your free, instant quote online you may find out the same day if you are approved for your mortgage life insurance.
Many people like you just don’t like having to take a physical exam in order to qualify for mortgage life insurance.
Some people feel it is invasive, or they just hate the thought of going to a doctor, having needles in their arm drawing blood, and the thought that something may be wrong with their health.
- Now, there is an option for you – Mortgage life insurance with No medical exam offers you a safe and easy way to get the mortgage protection your family deserves, without a doctor's visit or physical check up.
- In fact, you may qualify today for up to $500,000 of mortgage life insurance. Get a free quote now.
- Your life insurance Agent (Me) will quote and review the answers to your health questions and will contact you to discuss your options for no exam life insurance.
15. Do I Want to Purchase Mortgage Insurance No Physical Exam Required?
Now you may qualify for up to $500,000 of mortgage life insurance without any exams, in a matter of minutes.
It used to be the case that life insurers required a medical examination if you requested $100,000 of life insurance, or more.
Now, some insurers are using the internet and technology, to be more competitive, and offering life insurance online with no medical exams.
Mortgage term life insurance offers you guaranteed level rates and amounts of coverage for a period of 10, 15, 20, 25 or 30 years.