Type of Insurance?

Your policy length (or “term”) determines how long your coverage lasts. After it expires, you can get a new policy or you can usually renew it at a higher rate.

Rule of thumb: Your term should cover your longest financial obligations. For example, people with young children usually pick 20 or 25 years. If you want a Permanent policy (which never expires), you’ll need to select “Lifetime“

What does “Face Amount” mean?

Coverage is the amount your loved ones would receive (as a tax-free, lump sum) if anything happens to you before your policy expires.

Rule of thumb: Most financial planners recommend having coverage around 10x your income. For now, just pick what you think makes the most sense. You can always change it later.

How do Health Classes work?

Life insurance companies base their premiums on health classes. This basic guide can help you with your selection:

Preferred Best

• Alcohol/Drug Hx: No abuse
• Blood Pressure: Average readings in the past 2 years not greater than 136/86.
• Cholesterol: 120-300. Ratio may not exceed 4.5.
• Family Hx: No cardiovascular disease in either parent or sibling before age 60.
• Medical Hx: No personal hx of disease or impairment that would affect mortality.
• Driving Hx: No more than 2 moving violations in past 3 years. No DUI in last 5 years.
• Cancer: Only available on certain types of skin cancer.

Preferred

• Alcohol/Drug Hx: No abuse in the past 10 years.
• Blood Pressure: Average readings in the past 2 years not greater than 146/90.
• Cholesterol: 120-300. Ratio may not exceed 5.5.
• Family Hx: No cardiovascular disease in either parent or sibling before age 60.
• Medical Hx: No personal hx of disease or impairment that would affect mortality.
• Driving Hx: No more than 2 moving violations in past 3 years. No DUI in last 5 years.
• Cancer: Only available on certain types of skin cancer.

Standard Plus

• Alcohol/Drug Hx: No abuse in the past 7 years.
• Blood Pressure: Average readings in the past 2 years not greater than 136/86.
• Cholesterol: 120-300. Ratio may not exceed 4.5.
• Family Hx: No cardiovascular death of more than one parent before age 60.
• Medical Hx: Can have personal history of certain diseases or impairments.
• Driving Hx: No more than 3 moving violations in past 3 years. No DUI in last 3 years.
• Cancer: Available depending on type and date of onset of cancer.

Standard

• Alcohol/Drug Hx: No abuse in the past 7 years.
• Blood Pressure: Average readings in the past 2 years not greater than 156/94.
• Cholesterol: 120-300. Ratio may not exceed 8.0.
• Family Hx: No cardiovascular death of more than one parent before age 60.
• Medical Hx: Can have personal history of certain diseases or impairments.
• Driving Hx: No more than 4 moving violations in past 3 years. No DUI in last 2 years.
• Cancer: Available depending on type and date of onset of cancer.