Term Life Insurance

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Term life insurance is also referred to as straight life insurance, pure life insurance, and temporary life insurance. Term insurance is exactly what it says. You receive benefits for a specified period of time. Contrary to popular belief, there are other benefits available with term insurance besides just a death benefit, some at no additional cost. That is why it is best to consult with your insurance agent before purchasing a term policy. Other benefits include disability income rider, waiver of premium rider, other insured rider, accelerated benefit rider, to name a few. When choosing your policy, making it affordable is also very important. Term life provides the most coverage for your money. In most cases a term policy and a permanent life (whole life, universal life) policy are usually recommended. The amount of life insurance needed and desired, is going to differ with each individual client. At Hoch Insurance Services, we will help match you with the best policy for your particular needs and desires.

1. Age or Birthday: most insurance companies base underwriting on age of nearest birthday, while some still use age last birthday.
2. Gender: currently- based on life expectancy tables, women have a slightly lower premium for same age/class insurance coverage.
3. Health Class: It is widely known that smokers pose a higher risk, and therefore have higher premiums than non-smokers. There are still different health classes for each smokers and non-smokers. Most companies consider you a smoker if you have smoked tobacco within the last 12 months. Chew and cigars are usually not considered for underwriting purposes. Again all companies use different underwriting guidelines, so please ask your agent if you have any questions about any specific policy or company. If you have been denied insurance previously, due to health factors, there may still be companies that will insure you. At Hoch Insurance Services we will search exhaustively to find a competent company to insure you.
4. Amount of Insurance: Again the amount of insurance desired is going to be based on many individual factors. What assets do you want to protect? In case of death, how long do you want to provide for your family? Do you want to have additional monies for your children's education? Are you more likely to have an accident or a health related risk? How much can you afford on a regular basis? These questions and more need to be addressed to get you the right policy for you.
5. Accidental Death Benefit: This rider provides additional insurance, usually up to the face amount of the policy, for an accidental death of the insured. Some companies provide this rider at no additional charge. The basic accidental death benefit rider, if not included, is about $4.00 more a month for a $100,000 ADB (accidental death benefit) policy. You need to check with each individual policy to see exactly which kinds of accidents are covered and how much the actual rider is.
6. Waiver of Premium: This rider also is included at no additional cost in some policies. This rider allows the insured to be free of premium payment on the basis of some external health or disability factor. Most companies list this factor to be total disability. Total disability can differ in definition between companies also. Some companies have a 90 day elimination period for the rider to go into effect. Then once the 90 day elimination period has been reached, they will refund premiums for the elimination period. Again, all policies are different and should be understood prior to purchasing and/or comparing policies.
7. Return of Premium: Some insurance companies offer a return of premium rider with their policies. This rider provides that if certain criteria are met (mainly paying your premiums on time), you will be refunded all or part of the premiums paid. In most cases, if you were to just receive the term policy (no return of premium rider), and invested the difference, you would need to receive approximately a 7% return on your investment to equal the ROP (return of premium) rider benefit.
8. State: Not all policies are approved in all states. If you know of a specific company that is not approved in your state, you may still be able to get the policy through a licensed surplus agent. This is a more complex transaction, as unapproved companies may not be as restricted by the same state laws and regulations as the "approved" insurance companies. This type of transaction is rarely needed. If this is desired, we can help expedite your transaction.
9. Child Rider Units: This rider allows you to add life (level term) insurance on your dependent children (usually to age 22). The amount of insurance is listed in units. Each company has a limit on how many "units" may be issued. And, just to make things a little more confusing, companies attach a different value to how much a "unit" is. The two most common amounts are $1,000 and $2,000 per unit.
10. Desired Term Length: Almost all term insurance policies are issued in 5 year increments. (You may get single year and other increments guaranteed renewable insurance, but rarely is this the correct choice for the insured.)
11. Guaranteed Premium: Guaranteed premium guarantees that your premium will stay the same for a certain period of time. A 30 year guaranteed premium policy means your premiums are guaranteed for 30 years, they cannot go up or down. This usually has a slightly higher cost than non-guaranteed premium, but is usually worth the peace of mind. Some policies come with a 5 or 10 year premium guarantee and then become a non-guaranteed premium type policy. Again you need to review the terms of the specific policy to understand the actual length of the guaranteed premium. Non-guaranteed premiums may go up or down, but will have a limit listed in the insurance contract on how much the premium can go up or down. At Hoch Insurance Services we almost always advise on acquiring insurance with the guaranteed premium clause.
12. Additional Comments: It is hard to put all insurance options into a submit form. If there are additional riders or questions you are interested in, please indicate them here.
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    Term Life Insurance comes in 2 different forms: Level Term and Decreasing Term. At Hoch Insurance Services we will search both forms based on the criteria given for the quote. Not all benefits and riders are available for both level and decreasing term policies.

    There are currently over 1500 insurance companies in the U.S. We currently research as many as we can to find you the best value for your money.

    We will also give the A.M. Best rating of the insurance company for all quotes we submit to you. For your FREE and NO OBLIGATION quote please click the link below.

    Thank You
    Timothy J. Hoch
    Hoch Insurance Services

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