AFFORDABLE TERM LIFE INSURANCE QUOTES

If you would rather speak with a live agent, please call 877-305-9083.

Online Insurance Rates


Understanding Affordable Term Life Insurance


There are many commercials that pop up on television and radio promoting the value of getting an affordable term life insurance quotes. Now, most people have a clear understanding of what a term life insurance quote entails. However, they may be unaware what the concept of term life insurance centers on. For those that may have a number of questions regarding this form of coverage, the following is a brief overview of what it entails.


As with other forms of life insurance, term life insurance centers on offering a “death benefit.” That is, when the insured dies the beneficiaries will be paid a settlement amount based on the amount of coverage that the insured purchased. Again, this is standard with all life insurance policies. However, term life insurance is different in one respect. Specifically, term life insurance only provides coverage for a certain designated period of time. This timeframe is, of course, the term mentioned in the title of the coverage.


In short, the coverage is purchased for a specified term. When the term expires, the insured has the option of purchasing a new policy. In some instances, it may be the exact same policy at the same price. In other instances, it could be a new policy at an increased price or different terms. And, of course, the insured could also downgrade the policy for a lower premium. Really, this is the major benefit of purchasing a term life insurance policy. A person can save a lot of money on the purchase of a policy since the policies are being purchased in fixed terms.


This makes term life insurance perfect for those that may be on a proverbial budget. Anyone looking to make sure their family is properly covered in the advent of an emergency can take out a short term policy at a reasonable cost. That alone is a huge endorsement for term life insurance.

Ways to Avoid Life Insurance Rescission

What is Life insurance rescission? It is a legal move through which the insurance company can declare the life insurance contract void or cancelled, as a result of which your policy no longer holds good. The policy may be revoked even after you have started paying premiums on it.

Why would an insurance company rescind your policy? The most common bases for rescission are concealing, lying about or misinterpreting important material information that directly affects the outcome of the underwriting procedure, and subsequent predictions on your mortality. The term 'material' refers to a piece of information that was vital enough to have altered the life insurance company's decision on your policy application. e.g., concealing something as common as a cold is alright, but concealing tobacco usage would be classified as material information. Had these facts been disclosed at the time of buying the policy, your insurance policy would either have been rejected, or worked out at possibly higher premiums.

There are two ways to avoid life insurance rescission

  1. Make sure you understand the difference between a warranty and a representation: A warranty is something that you guarantee to be true in your insurance application. If the life insurance company finds that you have lied about your warranty, it has the right to revoke the contract. On the other hand, a representation is something that you state in your application, and affects the formation of the contract. If your representation is found to be untrue, the insurance company can cancel the contract. Most life insurance companies will resort to rescission if material (explained above) information was not included in the application.
  2. Know your timeline ' Life insurance companies have a two-year contestability period from the time the contract was signed. If the company suspects fraud during this period, or that false information was given during the underwriting process, it can rescind the policy.

Needless to say, having your policy rescinded has serious repercussions. You may never again have the opportunity to insure yourself, and this will of course have an impact on how your family will carry on after your death. Once a policy is rescinded, there is little hope for getting another policy, even with another insurance company. Insurance companies have access to the MIB (Medical Information Board), which maintains a record of policy rescissions on health grounds. Your information will no doubt be recorded too, making it impossible for you to obtain a new policy.

The only way to avoid the risk of rescission is to include all relevant information in your insurance application. Ask yourself if a particular health condition or lifestyle habit can affect your mortality. If the answer is yes, disclose the same to your insurer. True, you run the risk of being denied a policy, or given one with an exorbitant premium, but at least you can still apply to another insurance company. More importantly, your family will not be denied the benefits of insurance.

These days, even with certain health conditions, Rate this Article:

0 / 5 stars - 0 vote(s) Print Email Re-Publish

About the Author:


About AccuQuote:
AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

Author: Denise
Be sure to shop for affordable Individual Health Insurance AFFORDABLE TERM LIFE INSURANCE QUOTES