Frequently Asked Questions

• What is Term Life Insurance?
  
• Why are your quotes for life insurance so low?
  
• Why do premiums vary from company to company?
  
• Quote Services quotes vary, Why?
  
• Why is a company not quoted?
  
• How do you select companies to recommend?
  
• What is your relationship to the insurance company?
  
• How is ChoiceQuote^SM compensated and how much does ChoiceQuote^SM receive?
  
• Which policy is right for me?
  
• What happens after I choose a quote?
  
• Is my information confidential?
  
• How long does it take to get my policy issued?
  
• Will an agent visit me?
  
• Are there any other fees or charges for ChoiceQuote^SM services?
  

Term Insurance is generally the least expensive and least complicated type of life insurance. It provides insurance protection at a low cost for a specified period of time, such as 10, 15, 20 or 30 years. At the end of the term, you may renew the protection, although rates may then increase. There is no "accumulation" element, or cash value with term insurance.

Term insurance is ideal for people who have a temporary need for life insurance protection or who need a large amount of coverage, but are on a limited budget. Term insurance can also satisfy the needs of business owners who wish to cover the life of a key employee. Additionally, rather than passing outstanding obligations to your loved ones, term insurance can be used to pay off these debts in the event of the insured's death.

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Why are your quotes for life insurance so low?

• Only no frills pure insurance, called term insurance, is quoted.
• Our computer database is updated montly to ensure ChoiceQuote^SM always has the latest and most competitive premiums
• Requalifying (if you have term insurance now) may mean lower premiums from certain companies.
• In the past nine years, competition among insurance companies for market share has caused the overall level of insurance premiums to decline.
• New classification systems allow individuals with good health history to qualify for special low premiums.

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Why do premiums vary from company to company?

Actually, premiums vary because the insurance company has targeted categories to gain market share, for example ages males 35 to 45, products, e.g., 10 and 20-year guarantees, and/or classifications, e.g., Preferred Best, the classification with the lowest premiums, indicates no unusual medical or personal history. If you fall outside a target demographic, that company may no longer be competitive. It pays to check your classification carefully.

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Quote Services quotes vary, Why?

Simple. Not all services take the time to classify you based on their best estimate of your probable classification at issue of a policy, e.g., as a preferred risk or as non-preferred. Classification inflation caused by asking too few questions can mean that the policy you select may have a much higher premium than is quoted when issued. So taking the time to get your best estimate of your classification with ChoiceQuote^SM can mean accurately quoted premiums.

The other reason quotes vary is that not all services represent all competitive companies. This occurs because some services elect not to represent certain insurance companies because of marginal service in the past or the quote service may be unable to contract directly with the insurance company. Alternatively, some services represent only the companies where the maximum compensation is available.

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Why is a company not quoted?

If a company does not appear in our quote system it may mean we are not contracted with the company. In some cases this means they are new to the term market with competitive premiums and we have not completed the paper-work. Selected companies do not appear in our database because our experience has shown their service is poor and untimely. Some companies have instructed their agents not to provide quote information and/or comparisons of their premiums over the Internet. Finally, not all companies will contract with all direct-to-consumer companies for a variety of reasons.

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How do you select companies to recommend?

ChoiceQuote^SM selects companies to be quoted based on the following criteria:

1. Superior/Excellent financial ratings in the opinion of the independent insurance company rating service (s) such as A. M. Best, independent insurance analysts since 1899. Many companies also have Superior/Excellent ratings in the opinion of Standard & Poors, Duff & Phelps, Moody's and/or Weiss Research.
2. Dedicated to e-commerce, i.e., accepts application requests generated by the ChoiceQuote's Internet simplified shopping service.
3. First class underwriting of applicants in terms of decision-making and timely processing.
4. And, "yes" an acceptable level of compensation to ChoiceQuote^SM so we can stay in business.

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What is your relationship to the insurance company?

ChoiceQuote^SM and/or its agents represent most major companies offering competitive term insurance policies. However, not all companies are represented in all states and not all recognized companies offer competitive term policies. ChoiceQuote^SM is compensated solely by the insurance company, and only after you have: 1) selected the company, 2) qualified for the insurance, 3) reviewed the policy and 4) paid the premium. Therefore, the final decision is always in your control.

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How is ChoiceQuote^SM compensated and how much does ChoiceQuote^SM receive?

ChoiceQuote^SM and/or its agents receive compensation, called commissions, directly from the insurance company you select. Commissions fall into two categories, base and bonus. Base commissions depend on the plan guarantee you select, e.g. 10 or 20-years. Commissions vary widely from company to company. Agent commissions can be as low as 40% or as high as 80% of the first year premium. The policy fee is excluded from commission by most companies. Agents usually do not receive commissions, called a renewal commission, after the first year for like insurance.

In addition, certain companies pay a volume bonus to ChoiceQuote^SM which begins when premium volume placed with a company exceeds a certain level, e.g., $250,000 of first year premium. ChoiceQuote^SM may also earn nominal renewals to service policies such as 2-4% for five years. ChoiceQuote^SM may also receive selected other compensation for attaining a high level of placement of policies submitted for underwriting, and/or for keeping policies in force (persistency). Note, however, that compensation is predetermined by the insurance company for all agents and direct-to-consumer marketing companies such as ChoiceQuote^SM.

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Which policy is right for me?

For short-term needs — under five years — Yearly Increasing Premium plans offer the lowest average premium. For longer needs, a guaranteed level premium for 5, 10, 15, or 20 years can have the lowest average cost. Some companies, depending on your age, will offer guarantees to 40-years.

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What happens after I choose a quote?

Just follow the simple 1, 2, 3 steps at the end of the Application Request screen:

1. Complete and email ChoiceQuote^SM the Application Request.
2. Schedule your insurance examination by selection of time and place.
3. Expect a call from a "service provider" who make an appointment for an insurance company paid examination at a convenient time or you. The examination may be at your home, business location or at the examination facility's office.

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Is my information confidential?

Yes, by federal and in some cases state law, information you provide to gain acceptance by the insurance company is confidential. It must be kept confidential by the insurance company and may not be released to any third party not a participant in the underwriting process.

ChoiceQuote^SM does not release inquiries or give quote request information to any third party. ChoiceQuote^SM may, however, use information provided to advise you of renewals, new products or premium changes, or relevant issues unless your request that we do not.

The ChoiceQuote^SM site, in addition, is secure, to further ensure safety.

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How long does it take to get my policy issued?

Consumers are rewarding the most competitive and financially strong companies with a large volume of applications. This "flight to quality" is now overloading companies with low premiums. Plan on 6-8 weeks processing time after we have received your application and the insurance examination has been completed (no we're not kidding).

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Will an agent visit me?

The direct-to-you ChoiceQuote^SM system has been crafted to optimize ecommerce processing without face-to-face contact which may save you time. All communications are via phone, fax, mail or email. If you wish to speak to a licensed agent, call 1-888-SEE-TERM (888.733.8376)

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Are there any other fees or charges for ChoiceQuote^SM services?

No, ChoiceQuote^SM is compensated by the insurance company only after you have made your plan choice and received a policy you find satisfactory. In most states you will have a free look during which you may return the policy for any reason. If premium had been paid, your full premium will be refunded. As a result, the decision is always in your control.

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