Term Life insurance is a financial product designed to pay a benefit in the event of a death during the duration of the “term” of the insurance policy. Term lengths can range from a few years to 30 years.

If there is anyone (spouse, children, etc) who stands to be at a financial loss and/or may not be able to maintain their desired standard of living if you were to unexpectedly pass, then Term Life is probably something you should consider.

A consultant at Alkali, LLC will discuss your situation to help you determine if Term Life insurance is the right product for you. Once you decide to move forward, we can run quotes for you and assist you in analyzing your financial situation to see what your term length and death benefit should be.

Dave Ramsey recommends buying a 20 year term at 8-10 times your annual salary. The logic behind this calculation is better explained in the following example: If you make $50,000 per year and you purchase a Term Life policy for 20 years with a $500,000 death benefit and you were to pass during that 20 years, your spouse could invest that $500,000 in a good growth stock mutual fund and the amount of money you would bring home every year in interest alone would be almost as much as the $50,000 would net in a given year.

. The premium is based on many factors. Age, sex, tobacco usage, pre-existing conditions, family history, and even driving records can affect your premium. Of course the amount of the death benefit and the length of the term play a role as well.

Yes. Tobacco products alone can drive a rate up considerably due to the increased risk the insurance carrier takes on. A few carriers may not penalize you for an occasional “celebratory cigar”, but for the most part you can count on this raising your premium.

The standard answer is 3 years. This may vary a little from carrier to carrier. We do have access to multiple carriers to give you the most options.

Yes. A visiting medical practitioner, paid for by the insurance company, will check your weight, blood pressure and other vital signs, and perhaps take a blood and/or urine sample. In some cases, more extensive tests, such as an X-ray or EKG, might be required. Your blood and urine samples will be tested for any sign of disease, including the presence of the HIV virus, cholesterol level, and any indications of disorders such as diabetes, kidney problems, hepatitis and other problems. The samples will also be screened for the presence of nicotine and certain medications as well as for illegal drugs. The exam can be scheduled for your home or place of business at a time convenient for you and typically take no more than 15 to 20 minutes. You will be able to request a full copy of your exam report for your keep.

Most Term Life applications require some basic financial questions for you to answer and all will ask about medical history which helps them determine a rating and premium for you.

It is recommended that you get a minimal amount of coverage in the unlikely event a child passes during the duration of the term. Most carriers will offer at least $10,000, which is enough to cover burial and related expenses of a child’s death. This optional rider is very inexpensive and is the same price regardless of how many children you have.

There are no fees to apply for Term Life insurance. The premium is due upon delivery of the policy, which is after you have submitted an application and it has gone through the underwriting process with the insurance company. This way you can opt not to take a policy if the premiums came out to be much higher than you expected.

You have several options here. Many people will take the same coverage and pay the higher premium. Others will chose to reduce benefits to get the same price they were expecting to pay. Another option might be to try and find a different carrier that may view your medical history differently, therefore not rating poorly as the original carrier.

Yes. You may cancel your policy at any time.

Ratings play a major role in determining your premium. “Preferred Best” or “Super Preferred” mean that after the application and exam you are deemed to be in excellent physical health. This will help lower your premium since it’s a lower risk to the carrier. If you have health history you may still qualify for Term Life, but with a lower health rating translating to a higher premium.