A.: Term policies feature rate/benefits that are guaranteed to remain level  for a specified number of years, i.e. 10, 20, or 30 year periods.  This type of  policy is the most affordable and will not build cash value.  After the initial  terms, the rates go up to your new age or they expire.  A cash value policy  has payments and benefits that are projected to remain level until age 100.  It will build cash value that you can borrow from but it takes 10-15 years or more  to build substantial amounts of money in most cases.

A: The company is more at risk for covering your life and guaranteeing coverage for 30  years than 20 years, so they have to charge more.

A.: This varies from person to person.  Example: You may have a 10-year-old child  that you want to make sure has money for college or whatever if you die.  A 15-20  year term policy fits best because this child will be 25-30 and into his/her own life and  not nearly as much in need of this money after the policy expires.  You have  effectively covered their needs during this time.  Second example: you may have 24 years remaining on a 30 year mortgage, a 30 year term policy fits perfect here.  You  need to decide exactly what or who it is that you want to protect and a policy can be  designed that fits your needs.  In a majority of cases, term insurance is the best  policy to cover your life's needs.  It is the most affordable between the two and you  can invest any savings over a cash value type of policy into a mutual fund or other  investment for retirement needs.

An agent who works for a specific company, also known as a "Captive Agent",  can only offer you the products and services offered by that particular company.   This limits your ability to research not only the best priced policy, but also  the best type of policy to fit your needs.  An Independent Agent has access  to hundreds of companies and can tailor a policy to suit your needs while still using a  highly rated company.

Most Independent Agents, like myself, usually keep a core group of 10-20 companies  within their portfolios that we use the majority of the time.  I know, based on years  of experience (since 1991) in dealing with many different companies, which type of company  and policy will best suit your needs.  Once we determine the best type of product for  you, if necessary, I will then submit your application with several qualified companies in  order to achieve the best results for you.  A "Captive Agent" can only  submit an application to their own company, this limits your ability to receive the best  offer.  Utilizing modern computer technology, it is relatively easy to scan the  marketplace within minutes to find the best type of policy for you.

These types of policies you see on television will guarantee coverage  and they do not review medical records or require you to take an exam, it is very easy to  have a policy within 2 weeks.  They generally ask very few, if any health questions.   These policies offer rates and benefits that are guaranteed until the insured is  100 years old.  If the insured is still living at that time, the company will pay the  amount of the insurance policy.  These policies also have a cash value feature that  allows you to borrow money from the policy or receive money back (if avail.) if you decide  to cancel in the future.  I offer this type of coverage as well at much more  affordable rates than you see on your TV.  However, these types of policies  group everyone into the same rate category.  This means that even if you are healthy, you will receive the same rate as an individual who had a heart attack or cancer last  year.  This type of coverage definitely has a place and offers policies as low as  $1,500.00, but if you are reasonably healthy, I can find you much lower rates on a dollar  for dollar basis.  I actually have a client who was living in a nursing home that I  was able to insure this way.  Also, many of these types of policies have restricted  benefits in the first two years.  Call my office for details.

Now compare this type of policy with regular life insurance where the company will ask many more health questions, review your medical records AND have you take a no-cost exam.   Given the ability to review your health, you will receive MUCH lower rates than the  "Guaranteed Issue" types of policies, if you are healthy.  These types of policies generally take 5-7 weeks for you to receive your policy.