SAN FRANCISCO, March 4, 2003 (PRIMEZONE) -- Life insurance is something most people would rather not think about. They often don't know how much they need, and there are so many different types and companies to choose from. To address these concerns, SelectQuote(tm) Insurance Services, the nation's largest independent term life insurance sales agency, offers some basic information about life insurance in today's market.
"For almost 18 years, we have been impartial 'shoppers,' helping hundreds of thousands of men and women find the best policy and price for their situation," said Charan Singh, chairman and CEO. "We really have a sense of what people need to know about life insurance. Here is our top ten list of things everyone should know."
1. You probably need it -- The vast majority of American families
could not replace the income of their major wage earner if
something happened to him or her. Unlike auto or homeowners
insurance, there's no requirement that you have life insurance.
Yet, what better way to create an estate worth hundreds of
thousands of dollars for as little as a dollar a day?
2. If you do have it, you probably don't have enough -- Americans are
terribly underinsured. While consumer advocate groups recommend a
policy that covers 10 - 12 times your current income, most people
have less than 5 times. A $100,000 policy may sound like a lot of
money, but if a spouse were to invest a payout in that amount at
today's conservative interest rates of about 5% a year, that
$100,000 investment would only earn about $5,000 per year --
hardly enough to replace the income of their loved one.
3. Your spouse should be insured, too -- If your spouse is a wage
earner, you'll want to be able to replace that income. If he/she
is a homemaker, you'll need significant extra income to cover
costly household and child-care expenses.
4. Term life gives you the most protection for the lowest price --
Term is life insurance that you buy for a specific number of years
at a guaranteed price. You choose to lock in the same price for
10, 15, 20 or 30 years (in most states). In contrast, whole life
insurance may cost six to 10 times more for the same amount of
coverage.
5. Term life insurance prices have dropped dramatically -- As much as
33 percent in the past five years. One reason is the
proliferation of companies that "shop" several life insurance
companies for a person's best prices right over the phone or via a
Web site -- without ever having to meet with a sales person.
SelectQuote pioneered this impartial shopping concept in 1985.
Before that, consumers had to call around and meet with numerous
insurance agents to find the best deal.
6. Some people can save money on their existing policy -- If you have
not reviewed your life insurance policy in the past few years,
take a look. You may be able to reduce your rates or increase your
coverage for the same payments, assuming your underwriting
"profile," including your health and other risk factors are the
same.
7. There are companies that will shop the right policy for you --
There are hundreds of companies that offer term life insurance in
the U.S., and the cost for the same policy can vary hundreds of
dollars a year from one company to another. By working with a
shopping service that is committed to finding the best value for
your individual situation, you will probably save money and
definitely save time.
8. Even if you have had health problems, there's a very good chance
you can still get life insurance -- SelectQuote works with many
insurance companies who specialize in providing coverage to people
with asthma, diabetes -- even cancer in remission.
9. Yes, you do need a brief medical exam -- While you may hear about
a very few life insurance companies that offer insurance without
an exam, you'll find that their coverage limits are lower and
rates are much higher.
10. The process has gotten faster -- SelectQuote has shortened the
process by eliminating paperwork and employing technology. Policy
delivery is often cut from the typical two to three months to
just a couple of weeks.
For more information about term life insurance, contact SelectQuote at 800-824-3300 weekdays from 6 a.m. to 7 p.m. and Saturday from 9 a.m. to 3:30 p.m. Pacific Time. Information is available anytime at www.SelectQuote.com.
More about SelectQuote
In 1985, SelectQuote pioneered the concept of impartial shopping of term life insurance. Before that, consumers had to call around and meet with numerous insurance agents to find the best deal. SelectQuote provides a quick and accurate assessment of each customer's needs and finds the best price and policy.
San Francisco-based SelectQuote represents the leading companies selling term life insurance in America. All are rated A to A++ (excellent to superior) by A.M. Best, the leading independent rating service. Their roster includes well-known names like Travelers, C N A, Zurich Life, United of Omaha, and First Colony (part of GE Financial Assurance). Every month, SelectQuote's licensed agents sell thousands of policies nationwide. The company prides itself on its talented agents who provide superior customer service. SelectQuote.com is a "Best of the Web" site, according to Forbes.com.