Term Life Insurance

Term life is designed to provide protection for a limited period of time. The premiums remain level for a minimum of one year to as long as 30 years with the most common lengths of coverage being 10, 15, 20, and 30 years. This limited coverage has premiums that are generally lower than whole life or universal life, but policies do not build up cash value. However, some insurers offer a return of premium option where all the premiums paid are returned at the end of the level premium period.

Most term policies include an option to convert the term plan for a universal or whole life policy without having to reapply and prove you’re still healthy. This can be valuable if you have a change of health or need to extend coverage beyond the initial guaranteed premium period.

This type of policy is appropriate when you want coverage for a fixed time period, or when the budgeted dollars available for coverage are limited.

Whole Life Insurance

As its name indicates, whole life insurance is permanent insurance that provides lifetime protection as long as the premiums are paid. The three major policy components in a whole life policy are all guaranteed: the premium, the death benefit, and the cash value. Similar to universal life, whole life’s cash values may be accessed while you’re living through policy loans. While the cash value growth is guaranteed, it may build values at a lower rate than a universal life policy.

Whole life policies are defined as participating or non-participating. Participating whole-life policies share in the excess profits of the insurance company through dividends, where as non-participating policies do not. Policyholders have the option to receive their dividends in cash, increase their policy’s cash value, or to increase their amount of insurance coverage. Since they are based on the profitability of the company they will fluctuate with the success of the insurer and are not guaranteed.

This type of policy is appropriate when you desire guarantees in your protection, premium, and build-up of your cash value. This stability allows policyholders to have confidence in the role life insurance plays within their overall financial plan.

Universal Life Insurance

As its name indicates, whole life insurance is permanent insurance that provides lifetime protection as long as the premiums are paid. The three major policy components in a whole life policy are all guaranteed: the premium, the death benefit, and the cash value. Similar to universal life, whole life’s cash values may be accessed while you’re living through policy loans. While the cash value growth is guaranteed, it may build values at a lower rate than a universal life policy.

Whole life policies are defined as participating or non-participating. Participating whole-life policies share in the excess profits of the insurance company through dividends, where as non-participating policies do not. Policyholders have the option to receive their dividends in cash, increase their policy’s cash value, or to increase their amount of insurance coverage. Since they are based on the profitability of the company they will fluctuate with the success of the insurer and are not guaranteed.

This type of policy is appropriate when you desire guarantees in your protection, premium, and build-up of your cash value. This stability allows policyholders to have confidence in the role life insurance plays within their overall financial plan.

Commonly Used Terms

  • Preferred Plus - The preferred plus life insurance rate class states that you are in overall excellent health, you are free of any type of tobacco use and you do not engage in a risky occupation or hobby. In addition, you have no history of drug or alcohol abuse.
  • Preferred - Preferred rates generally apply to those who are in excellent overall health and do not participate in dangerous activities.
  • Standard - Individuals in the standard life insurance rate class are typically in average health with some minor health conditions. For instance, someone with elevated cholesterol levels and is overweight.
  • Substandard - This life insurance rate class refers to people who have significant health impairments. These individuals may have to pay an extra premium depending on the risks they pose to the issuing life insurance company.

Medical Guidelines

Medical Guidelines

Underwriting Criteria

Preferred Plus

Preferred

Standard

Physical/Mental Impairments and Medical History

No health impairments allowed. No personal history of cardiovascular disease or diabetes.

Some health impairments allowed. No personal history of cardiovascular disease or diabetes.

Some health impairments allowed. Can have personal history of certain cardiovascular diseases or diabetes.

Blood Pressure

No current or past history of blood pressure treatment. Current and average readings in the past two years not greater than 140/85.
(except Banner Life)  

Currently well controlled with current and average readings in the past two years not greater than: 150/90

Currently well controlled with current and average readings in the past two years not greater than: 150/90 - age 45 and younger, 154/93 - ages 45-60, 158/95 - ages 61 and over.

Family Medical History

No cardiovascular disease or cancer in either parent or siblings before age 60.

No cardiovascular death of either parent before age 60.

No cardiovascular death of not more than one parent before age 60.

Personal Driving History

Not available if 3 or more moving violations in last 3 years, or if any DUI in last 60 months.

Not available if 3 or more moving violations in the last 3 years , or if any DUI in last 60 months.

Not available if 3 or more moving violations in the last 3 years except with flat extra, or if any DUI in last 24 months.

Use of Tobacco or Tobacco Products

No tobacco use in the past 36 months.

No tobacco use in the last 12 months.

No tobacco use in the last 12 months.

History of Cancer

Depending on company, only available on certain types of skin cancer.

Only available on certain types of skin cancer.

Available depending on type and duration of cancer.

Cholesterol Readings

Levels may not exceed 240.

Levels may not exceed 250.

Levels may not exceed 280.

CHOL/HDL Ratio

May not exceed 5.0.

May not exceed 6.5.

May not exceed 7.5.

 

Insurance Guidelines for Health

The following tables,offer basic guidelines as to how most companies will classify you (preferred plus, preferred, standard) based on medical and personal issues. Important: Even if you apply as a standard or preferred risk, our companies will offer you their very best possible rates (preferred, preferred plus) whenever possible.
 

 

Maximum Weight

Height

Preferred Plus

Preferred

Standard

4'10"

137

144

169

4'11"

141

149

175

5'0"

145

154

189

5'1"

149

159

193

5'2"

153

164

197

5'3"

158

169

204

5'4"

162

175

209

5'5"

166

180

215

5'6"

170

186

220

5'7"

176

192

225

5'8"

182

197

230

5'9"

188

203

235

5'10"

193

209

242

5'11"

199

215

251

6'0"

207

228

256

6'1"

211

227

263

6'2"

216

234

271

6'3"

222

240

279

6'4"

227

246

286

6'5"

233

253

293

6'6"

238

260

300

6'7"

243

266

307

6'8"

249

273

316

6'9"

254

280

325

6'10"

260

287

333

6'11"

265

294

341