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About Term Life

Frequently Asked Questions

About SelectQuote

Why should I choose SelectQuote?

Because SelectQuote offers you advantages that other online, and traditional, insurance services don‘t. In 1985, we pioneered an impartial, pressure-free way to buy individually underwritten term life insurance from competing insurance companies by phone, helping customers save hundreds of dollars on their policies. Since then, hundreds of thousands of people have saved millions of dollars with SelectQuote.

Accurate quotes. Thanks to our years of experience and exclusive rate-calculation technology, you get an accurate quote from our insurance companies right from the start. No surprises.

Expertise and value. Your SelectQuote licensed agent knows how to cut through insurance company red tape, saving you time and money.

Continuing service. Our VIP program keeps you current with changes in insurance rates. We monitor rates and compare them to our customers‘ existing coverage. If we can save you even more on your existing policy, we‘ll let you know.

What companies does SelectQuote represent?

Learn more about the highly rated life insurance companies we represent. Availability of companies and products varies by state.

Is SelectQuote licensed in my state?

SelectQuote is licensed to sell life insurance in every state, with the exception of South Dakota. What‘s more, your personal representative is fully licensed in your state, so you‘ll be able to speak to an expert on your state‘s rules and requirements whenever you need information.

How confidential is my information?

Completely. No one has access to your information other than SelectQuote, and, once you‘ve chosen one of our highly-rated companies, the insurer you decide to use. We never sell your name, address, or personal information. Click here to view our Privacy Policy.

Do you just give price quotes?

No. SelectQuote handles every step of the buying process, and does it all at your convenience. Unlike some online insurance services, which simply generate leads and sell your contact information to the highest-bidding agents, we are a full-service agency that helps you throughout the process.

How does SelectQuote get paid?

SelectQuote receives a commission from an insurance company each time a policy goes in force. We may receive additional compensation from insurers based on other factors such as premium volume placed with a particular insurer. The compensation we receive may differ depending upon the product and the insurer. SelectQuote sales representatives are compensated through a combination of base salary and production incentives reflecting customer care and sales volume. We train and instruct each sales representative to find the best priced policies matching the individual underwriting characteristics and coverage needs of our clients from the insurance companies that we represent. To ensure that you receive impartial advice and get the right coverage, we do not tell our agents the details of the insurance company compensation programs, and we do not rank or present our insurance companies or their products based on compensation. Our sales representatives‘ recommendations will never be influenced by any differences in commissions or other compensation offered by the different insurers we represent.

How does SelectQuote pick the companies it represents?

SelectQuote regularly monitors the products, prices and service of highly-rated insurance companies that actively compete for term life business placed by independent agents. Different insurance companies have different standards for their underwriting classifications. Each company can be more or less competitive depending upon such factors as policy size, age range, health factors and lifestyle. SelectQuote establishes agency relationships with a select group of insurers to have highly competitive products for a broad range of underwriting factors and to establish strong personal relationships with insurance companies‘ underwriting and administrative staffs to facilitate prompt and responsive service. SelectQuote uses the following consumer factors to select the insurance companies it represents.

  • Competitive Pricing
  • Financial stability
  • Varied underwriting specializations
  • Excellent claim-paying record
  • Efficient operations
  • Experienced personnel

Determining Coverage

How much term life insurance do I need?

Since life insurance replaces lost income if something happens to you, the proceeds from your policy should be enough to cover immediate expenses as well as to provide continuous income for your beneficiaries. Most financial planners recommend coverage that‘s 5 to 10 times your annual income. For example, if you make $50,000, you might consider coverage between $250,000 and $500,000. If you‘re younger and just starting a family, you might need as much as 15 times your income to allow for salary increases. Since individual needs vary, we recommend that you speak to one of our licensed agents to help you determine what‘s right for you. We also recommend you consult your attorney or financial advisor for professional legal, tax and financial planning advice.

What does "guaranteed" mean when you are talking about my premium?

"Guaranteed" refers to the annual premium you pay on your policy. For example, a fully guaranteed 20-year term means that your premium is guaranteed to remain the same, or level, for a full 20 years as long as you pay the premium. The coverage, or death benefit, also remains level. The insurance company cannot cancel your policy or raise your premium for the length of the term, as long as you pay the premium. The same is true for 10-year, 15-year, 25-year, and 30-year guaranteed terms.

Some companies offer term policies that are partially guaranteed. We recommend that you consider only policies that are fully guaranteed, so that your rates cannot change for the length of your policy.

How long do I need protection?

The number of years‘ coverage you need depends on several things, but the most basic consideration is how long you expect your beneficiaries to be dependent upon your income. If your spouse is your beneficiary, you should consider being covered until you plan to retire. If it‘s your children, you‘ll probably want to protect them until they‘re 18 or finish college. To cover a mortgage, choose a policy that will be in place for at least the length of the loan. Depending on your age, you can purchase policies guaranteed for 10, 15, 20, or even 30 years.

Should I get coverage for my spouse?

The need for term life coverage applies equally to income-earning spouses, and there are strong arguments for acquiring life insurance for a partner who is not drawing an income as well. For instance, losing a stay-at-home spouse can lead to dramatically increased child-care costs, time away from work for the surviving spouse, final expenses, the settling of outstanding debts, and these are just the financial aspects of such a serious loss. The rule of thumb is to get at least 50 percent of the term life coverage for a stay-at-home spouse as for the primary breadwinner.

Should I get a policy for my kids?

None of the companies we represent offers separate policies for children, but many do have inexpensive "child riders." Usually, for one flat fee applied to the parents‘ coverage, each of your children (current and future) can be covered for up to $25,000. Ask your personal representative about the options available in your state.

What‘s the difference between term and whole life insurance?

A term life insurance policy covers you for a stated period-typically 10, 15, 20, or 30 years. Because the insurance company‘s liability is limited to a specific period, term is the most economical kind of life insurance. A whole life insurance policy lasts as long as you pay the premiums. Whole life policies can also have a cash value. Part of the premium you pay covers your insurance, and some of it goes into the policy‘s cash value. Whole life insurance is much more expensive than term life insurance for the dollar amount of coverage. So as you consider the two, you‘ll want to ask yourself the following key questions:

  1. How important is whole life coverage to you and your family? For many people, a 20- or 30-year term policy will meet their long-term insurance needs. For example, it could protect you for the period during which your kids (and their expenses) are growing, and end when they graduate from college.
  2. Can you afford whole life insurance? Premiums for the same dollar amount of whole life insurance can be two to ten times higher than a term life insurance policy.
  3. How important is the cash value of a policy to you? As Insurance for Dummies author Jack Hungelmann writes, people get "swayed by the lure of cash value of the policy. They buy a cash value policy with less death protection than they need in order to have some investment - something to show for it in the end when they don‘t (unlike the rest of us) die." His advice – and ours – is "never trade critical protection for less important investment opportunities."

Can I convert my term life policy to whole life insurance?

All of the term policies we sell at SelectQuote are convertible to permanent insurance, also called whole life or universal life insurance, at various times during the term of the policy. This conversion takes place without you having to take another medical exam or reapply, no matter what may have changed in your health. This option provides reassurance and flexibility should your health or insurance needs change after your original purchase through SelectQuote.

Can I renew my policy?

All of the term life policies we sell give you the option of renewing the coverage on a year-to-year basis once the initial guarantee period expires. Most importantly, the coverage is renewed without you having to take another medical exam or reapply, so you can continue your coverage even if there have been changes in your health. Premium charges will increase when the initial guarantee period expires, and can increase annually thereafter.

I‘ve had some health issues. Can I still get life insurance?

There‘s a very good chance you can. SelectQuote represents many companies that specialize in insuring people with less than perfect health. Since 1985, our agents have helped hundreds of thousands of people, including cancer survivors and those with diabetes or heart disease, get the coverage they need at the best price available.

Getting Your Policy

How do I apply for a policy?

With SelectQuote, three steps are all it takes.

  • Step One: Get your application started. You can call one of our personal representatives toll-free at 1-855-244-1993 and complete the process in a matter of minutes, or you can fill out our online life insurance application request form. A personal representative will then review your profile and get your application started.
  • Step Two: We‘ll have a representative from the insurance company you‘ve selected call you to verify your information and schedule your free medical exam.
  • Step Three: Complete the short paramedic exam in your home or office, at your convenience and at no cost to you. This exam, an insurance company requirement, includes blood and urine samples and should take no more than 15-20 minutes. Of course, all information is confidential, and you will have access to the results. The medical examiner will collect your application and send it to the insurance company.

How do I get the best price on a policy?

It‘s easy. Simply answer all of the questions on your application honestly, complete your medical exam (at no cost to you) and promptly return any forms required by the insurance company. We‘ll take care of everything else.

How long does it take to get a policy?

Typically, it takes 4-7 weeks after your application is submitted to get the policy in your hands.

Do I have to take a medical exam?

Yes. Almost every one of our companies require applicants to take a brief paramedic exam, which includes blood and urine samples. In some cases, you may also be required to have additional tests at the request of the insurance company. The exam is at no cost to you and takes place at your home or office when it‘s convenient for you. It usually takes less than 20 minutes.

In most states, we also offer an express underwriting policy, which does not entail a medical exam. The cost for such coverage is somewhat higher than the cost of a comparable fully underwritten policy.

How does a monthly payment plan work?

You can choose to pay your premium monthly rather than annually. The insurance company will establish an automatic draft linked to your checking account, and deduct the monthly premium on the date that you specify. Small service charges, approximately 3-3.5 percent of your annual premium, will be added to your payment and vary by company. Annual, semi-annual and quarterly payment modes are also available. Annual payments have the lowest 12-month charge of these alternatives.

Do I have any coverage while I‘m waiting for my policy?

Very often you do. Once your application, initial premium, and completed medical exam have been sent to the insurance company, you may be eligible for temporary conditional insurance while your policy is being approved. Terms and conditions vary by company and state, but are explained in detail on your insurance application. Your SelectQuote personal representative will explain how it works.

I already have a life insurance policy. What should I do with it?

If you wish to replace a life insurance policy with one through SelectQuote, you should not cancel your old coverage until you have received, reviewed and accepted your new policy. Cancel your old policy after all final requirements for the new one are complete and you have received notification from the insurance company that your policy is in force.

Please make sure to consult your legal or tax advisor. The surrender of cash value policies may involve surrender penalties and tax consequences. New policies have contestability and suicide period provisions.

What is Term Life Insurance?

Term life insurance is the most affordable way to protect your family's financial security if something happens to you.

Men and women in excellent health in their mid 30s and 40s can buy $100,000+ of term life insurance for under a dollar a day.

You can buy term life insurance for 10, 15, 20, or 30 years — however long you need it.

In most cases, term life insurance proceeds are tax-free. Consult with your tax advisor if you have any questions.

How Much Do I Need?

Term life insurance is the most affordable — and flexible — Life insurance product available. Why? Because term life insurance provides a specific death benefit amount for a duration — or term — chosen by the policyholder. Once a 10-, 15-, 20-, or 30-year term is selected, the coverage and premium amounts remain the same for the life of the policy. So rather than paying a monthly premium for the rest of your life, you can simply buy coverage for however long you need it — usually until your children are grown and out of the house.

Life insurance is a personal affair. Standard formulas such as buying coverage equal to eight, nine or ten times your annual income are inadequate shortcuts. Online calculators can provide a general guide, but it doesn't make sense to say that someone with four young children should have the same amount of coverage as empty nesters with no mortgage and a substantial retirement fund. Other items to consider:

The time factor. Figure out how many years you'll need to be covered.

Final expenses. Determine the total cost of your funeral, burial and related expenses.

Mortgages and other debts. Tally your mortgage balance, car loans, student loans, and any other major expenses.

Education expenses. This calculation can be tricky because you need to consider the cost of a college education at the time your kids will enroll, as opposed to what it would cost today. Hint: It will be more expensive.

Income replacement. Once you cover funeral expenses, debts and education, you need to determine the amount of income required for your family members to sustain their current lifestyle.

A conversation with an experienced agent can provide the guidance you need.

Why Choose SelectQuote?

In 1985, SelectQuote pioneered the direct marketing of term life insurance — providing unbiased price comparisons of your best rates from highly-rated term life insurance companies.

Your personal SelectQuote agent is dedicated to:

  • Answering all your questions.
  • Offering all the information you need to be an informed buyer.
  • Diligently shopping for your best prices from the trusted companies SelectQuote represents.
  • Going to bat for you every step of the way.

SelectQuote focuses on each client’s individual needs in order to find the policy that suits you best.

SelectQuote is America’s #1 Term life sales agency.

Companies We Represent

The 12 Trusted Companies We Represent

American General
Globe Life
Legal & General
United of Omaha
Protective Life
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