There are three main ways a new life insurance policy is priced: Underwritten policies are those where you answer questions on your personal and family medical history and undergo a medical exam arranged by the insurance company; a simplified issue life insurance policy application asks you some medical questions but does not require a medical exam; and a guaranteed issue life insurance policy requires no questions and no medical exam. If you’re healthy, or even if you have a few medical problems, you’re likely to get the best insurance value from an underwritten policy, which is priced specifically for you. Simplified issue and guaranteed issue life insurance policies set a price that assumes risk that you may not have.

Whether you’re buying term life insurance or whole life insurance, you’ll likely be asked to undergo a medical exam. These are typically performed by licensed paramedicals who are often independent contractors hired by the insurance company. They will schedule a visit to your home for the exam and bring all the necessary supplies. The life insurance company foots the bill for the exam.

Health questions

When you submit your completed application for your life insurance policy, your agent or life insurer will call a paramedical service to let them know you require an life insurance medical exam. The service will then contact you to arrange a convenient time and place. You must have the exam or your application won’t be processed.

The life insurer may still request an attending physician’s statement (APS) from your doctor, but you cannot have the life insurance medical exam done by your own physician.

In a basic exam, the paramedical will take your medical history (even though you’ve already supplied it on your application), height and weight, blood pressure, pulse, and blood and urine samples. Beyond that, tests will vary based on your age and policy amount.

For example, MetLife will order an in-home EKG for applicants age 50 and older who are applying for face amounts of at least $1 million. For applicants age 70 and older who are applying for $2 million policies and higher, MetLife forgoes the paramedical exam and requires an exam by an M.D. chosen by MetLife (not your own doctor). The doctor will ask the same medical questions as a paramedical and get your height, weight, blood pressure and pulse, plus do a brief medical exam such as listening to your heart.

Jacki Goldstein, Vice President of Life Underwriting at MetLife, emphasizes that this is not a comprehensive medical exam and does not include sensitive issues, such as a breast exam for women. Goldstein also stresses that the M.D. life insurance exam is not a substitute for good routine medical care.

When age and face amounts get higher, a treadmill test may be required. For example, MetLife requires treadmill tests for applicants who are at least 50 and applying for over $10 million in insurance or applicants 76 and older applying for $5 million or more.

If you’re applying for a low face value policy, you may not even be asked to do a paramedical exam. For example, if you’re age 40 and applying for $50,000 of life insurance, MetLife requires no specific tests or measurements. And for some cases, MetLife asks for a “simple paramed” exam, encompassing the basic measurements and blood and urine work but without the paramedical question list. Guidelines for tests will vary among life insurers.

What are They Looking For?

The life insurance company wants to know if you have any health condition that could shorten your life – which in turn affects the insurer’s risk and your policy premium. When samples of blood and urine are collected, the insurer tests for HIV, cholesterol and related lipids, liver or kidney disorder, diabetes, hepatitis, prostate specific antigen (PSA) and immune disorders. The urine sample might go through routine analysis, plus screening for certain medications, cocaine and other drugs.

Results go to the life insurer’s home office for an underwriter to review. You can usually send a written request if you want a copy of the results, and some insurers will automatically send you a copy of your lab work. If there’s anything of concern about the lab results, you would need to consult your own doctor. Goldstein says, “It’s not uncommon to have abnormalities that don’t mean anything.”

A life insurance underwriter then reviews your application and the results of your medical exam. They decide your life insurance rating, which sets your premium. If there are lingering questions about your health, they may request additional information or medical tests. In the very rare event you are unknowingly quite ill – chronically or terminally – your application would be declined and you would have to look for a high-risk carrier or one that offers guaranteed issue life insurance.

Don’t Let Your Life Insurance Premiums Go Up In Smoke

Smokers pay higher premiums for life insurance because of their higher mortality rate. If any nicotine shows up in your results, you’ll be considered a smoker. The test also detects nicotine from a transdermal patch.

After the Life Insurance Exam Results

If your test results correlate with the classification used for your original life insurance quote, you’ll have no problem getting that rate. If a medical problem is discovered, you might be offered a life insurance policy with a higher premium.

There are two types of risk ratings: “flat” ratings, sometimes called temporary flat extras, and “table” ratings. Underwriters assess health conditions based sophisticated table to determine how to rate certain health conditions.

For instance, an underwriter might apply a flat rating for a short period of time for a person who has just had surgery. On the other hand, a person with high-blood pressure could receive a table rating, which increases premiums by a set amount for the duration of the policy, depending on your medical condition and age. If you disagree with a rating you receive, contact your agent. Agents can find out if the rating can be revised based on supplemental medical tests to prove you qualify for a better rating.

Even if you end up declining the life insurance policy, your test results become part of your record in MIB Group’s database (formerly the Medical Information Bureau), a clearinghouse of medical information that insurers share which stores information for seven years after you apply for a life, health, disability income, long term care or critical illness insurance policy.

MIB is jointly owned by about 470 insurance companies. So, if you go shopping around for other term or whole life insurance policies, remember that your medical information is accessible to other insurers in the near future. Note that MIB’s database does not contain actual medical records but rather codes that represent medical conditions and tests, hazardous hobbies and even your bad driving record.

If you want to check your MIB file, or dispute information in it, you can obtain one free report annually at www.mib.com.

No Way, You Say?

Life insurance medical exams are really quite routine. But if you want to avoid a medical exam at all costs, you could buy a simplified issue life insurance policy, which requires only that you answer a few medical questions, or a guaranteed issue life insurance policy, which requires neither an exam nor questions.

Keep in mind, though, that if you’re in general good health, or even with a history of some health issues, you’ll likely get a much better rate by buying a life insurance policy that requires a medical exam.

Tips for a Better Life Insurance Medical Exam

Certain health conditions simply cannot be masked, but to obtain the best possible results, here are some recommendations:

Get a good night’s rest the night before your exam.
Don’t drink for at least eight hours before the exam.
Avoid coffee, tea or other caffeinated drinks such as soda for at least one hour prior to the exam.
Limit salt intake and high-cholesterol food 24 hours before your exam.
Don’t engage in strenuous physical activities 24 hours before the exam.

Source: Exam & Profile Services, Beaver Dam, Wisconsin

Amy Danise is a staff writer for http://www.Insure.com Visit Insure.com for a comprehensive array of comparative auto, life and health quotes, including a vast library of originally authored insurance articles and decision-making tools that are not available from any other single source. Insure.com is dedicated to providing impartial insurance information to consumers. Visitors can obtain instant insurance quotes from more than 200 leading insurers, achieve maximum savings and have the freedom to buy from any company shown.

If you are considering your life insurance options, you have undoubtedly encountered the “term insurance” versus “whole life insurance” debate. With so much information and so many opinions, it is easy to get caught up in a whirl of confusion. The key is to research your options, because there is no ‘one size fits all’ approach.

First, you need to understand the basics of each type of insurance. Once you know that, consider how they will apply to you. What are your financial goals? Do you have other investment tools at work for you? Would a combination of strategies be your best option? Once we address a few of these questions, it will be much easier to determine which route will suit you and your family – term or whole life or even a combination of the two.

Defining Term Life

Term life insurance offers coverage to the policyholder for a specified length of time. Generally, this type of policy is bought with an objective in mind. For example, term life insurance is a popular option for individuals with limited income. It is also sought after by those with high, but short term insurance needs; entrepreneurs who wish to cover a business loan, or for personal family protection. While term life policies offer no cash value accumulation; they do provide for beneficiaries upon your death. The face value is usually collected tax free, assuming that all premiums are paid current.

The Advantages of Term Life

Term life insurance typically boasts low premiums. Given the lower premiums, many industry experts believe that term insurance provides the best insurance coverage per premium dollar. In addition, this type of policy does provide you with the coverage you need to meet all your short-term needs. A good example of such a need would be your mortgage.

Finally, term life insurance policies can also serve as a complement to your whole life insurance policy, should you opt to have both in place. Convertible term policies are available. These policies will enable you to convert your current term coverage to permanent life insurance at a later date, and generally a medical exam is not required.

The Disadvantage of Term Life

To truly determine what type of coverage is right for you, you must also consider the disadvantages or cons of term life insurance. The first thing to keep in mind is that coverage only lasts a pre-determined length of time. In addition, premiums will continue to climb as you age, or your death benefit will decrease. As stated above, there is no cash value accumulation.

You will also need to look to the future, by realizing that riders that are available with whole life insurance policies are not usually obtainable, and you may be unable to purchase additional coverage at a later date. Finally, term life is not typically available to seniors and these policies are not appropriate for paying estate taxes.

Defining Whole Life Insurance

Whole life insurance offers policyholders permanent and lifelong insurance coverage. Of course, this is assuming that you continue to pay your premium payments! The policy benefit typically remains the same over the course of time, and is payable to the beneficiary(s), upon the insured’s death.

Unlike term life insurance, whole life is designed to last over an extended period of time. Those wishing to cover permanent needs favor these types of policies. Permanent needs may include covering final expenses or contributing to a survivor’s nest egg. Whole life policies also present you with an opportunity to build cash value. This may become important later in life, if you are faced with unexpected costs. You can take a loan on your policy to cover major purchases or help finance that ‘rainy day’.

The Advantage of Whole Life Insurance

There are a number of advantages to consider. First, whole life insurance policies offer guaranteed protection for life, as long as you continue to meet your premiums. Premiums do not increase in direct correlation with age, and typically, your death benefit is tax-free.

In addition, whole life insurance offers low risk cash value accounts, and the cash may accumulate tax-deferred. In certain cases, you may be able to convert your cash value to an annuity or even opt to make tax-free loans of your cash value. Finally, many depend on a whole life insurance policy to provide their loved ones with the funds to pay for medical bills, final expenses and any remaining debt.

The Disadvantages of Whole Life Insurance

One of the major disadvantages associated with whole life insurance is the cost of premiums. Many find the high premiums to be a hindrance, and are unable to purchase the appropriate amount of protection. Following along that same thought, in order for a whole life insurance policy to be beneficial, you will have to maintain the policy for a considerable amount of time. You are unable to vary your monthly premium payments and the payment period time is lengthy.

Another disadvantage is that at the ‘end of the day’ the cash value of your policy may be less than your face value. This is one major reason that proponents of term life insurance encourage policyholders to buy a term policy and invest the difference. But we will touch more on that later.

There are two final points to consider when shopping your options. First, should you opt to take out a loan, the amount is deducted from the cash value or death benefit of the policy. In addition, you generally are unable to increase the amount of coverage at a later date.

What Type of Policy is Right for Me?

There are a few basic questions to ask yourself. First are your insurance needs permanent or temporary? Also, you must face the practical issue of premiums. Can you afford the high premiums associated with whole life insurance? Are you disciplined enough to, ‘buy term and invest the difference’? If you were faithful in putting your pennies in the piggy bank as a child, this may be a smart option. However, if you know that you will spend every extra dollar buying fabulous shoes or that amazing set of golf clubs – you will want to consider the ‘forced’ savings that whole life insurance provides.

There is always the option of a convertible term policy. Many find that it is an appropriate way to begin. Despite your choice, at the end of the day, you want to ensure that the type of coverage you opt for will help you build a strong and solid financial foundation for you and your family! Our last tip? Do not depend on either term or whole life insurance as your primary source of investment. Talk with a financial advisor regarding other options, such as 401Ks, IRAs, Stock Options, etc. You can never over prepare for the future.

Establishing his insurance career in 1985, Gary Stuart began from the ground up, building and cultivating an agency which specialized in several lines, including long term care, group health, disability, whole life insurance and more! In 2001, Gary translated his 15 years of experience in the industry to the development of his website which provides his customers with an opportunity to explore their insurance options. Gary sees education as the key element in purchasing a policy best suited to the needs of the individual. For more information, you can vist his site at: http://www.acculifeinsurance.com

It is sometimes said by poets that life is but a span, and if something bad happened to you, yours family would have to go through a heavy time; the welfare of your family would be deteriorated. Life insurance companies offer you various insurance programs, which will provide financial security of your family in case of death, disability in your future. They help you keep your head above water, as well as support your most optimal plans.

Most life insurance companies are reputable because of the strict regulations in Canada and throughout the world. The best way to get a good selection of life insurance most fitted to your needs in this day is to use the Internet. It could be quickly found out that Wawanesa Life is among best rating life insurance companies.

Wawanesa Life is a subsidiary company of the Wawanesa Mutual Insurance Co. Wawanesa has a rich history dating back to 1896, when it was founded in the Village of Wawanesa, Manitoba. Today executive offices are located in Winnipeg, Manitoba, Canada. Wawanesa Mutual operates in all areas of Canada as well as in the states of California and Oregon in U.S.A.

Wawanesa was awarded an A+ (Superior) Rating for its financial strength from A.M. Best Co. the world’s oldest and most authoritative insurance rating and information source. Some of Wawanesa traits are the out standing claims service and underwriting service, consistent range of quality products and among them:

Individual Products and Services

It should be noted that a vast array of life insurance policy types available consists of one of two basic forms: Permanent insurance and Term insurance.

As the names imply, permanent insurance is permanent for life and term insurance is temporary. Examples of permanent needs are funeral expenses, survivors’ income, taxes at death on capital gains and charitable bequests. Examples of temporary needs are mortgages, education and business loans.

Permanent Products

Types of permanent insurance plan:

Universal Life is a permanent insurance plan providing for separation of the insurance and savings components of the policy. All premiums are generally deposited to interest bearing investment accounts. From these accounts it is deducted Cost of Insurance (COI) charges and administration fees. Policyholders could direct premiums to different account choices, such as a Daily Interest Account, a Canadian Equity Index-Linked Account, a U.S. Equity Index-Linked Account, an International Equity Index Account and a Canadian Bond Index Account. It may be selected two COI charge methods by the policyholder. The charge may be level for policy’s life, or may be level (at a lower amount) up to age 65 with a following increase to a new higher amount for policy’s remainder.

The tax-free death benefit will consist of the death benefit provided by the insurance coverage selected plus the value of the different investment accounts. The Account Value, less a surrender charge in the early years, will be available to the policyholder upon surrender before the death of the life insured;

Term to Age 100 – this plan provides a level amount of permanent life insurance, to ago 100 of the life insured, at which time the face amount of insurance is paid.

Premiums are level and payable to age 100. This plan is also available on a joint-last to die basis;

Fifteen Pay Term to Age 100 plan provides a level amount of permanent life insurance to age 100 of the life insured, at which time the face amount of insurance is paid. All premiums are guaranteed, level and payable for 15 years only. Commencing in the 10 th year.

A guaranteed cash value will develop to be available to the policyholder upon surrender before the death of the life insured;

Twenty Pay Term to Age 100 plan provides a level amount of permanent life insurance to age 100 of the life insured, at which time the face amount of insurance is paid. All premiums are level and payable for 20 years only.

Commencing in the 10 th year a guaranteed cash value will develop to be available to the policyholder upon surrender before the death of the life insured;

Final Expense Plan is designed for individuals age 45 to 75. This permanent plan is a guaranteed issue with just 5 qualifying questions.

Premiums are level and payable for 20 years only. The death benefit in the first 2 years will be the return of paid premium plus 10 % interest to the death date. When death occurs it is paid the full protection. The death benefit amount is paid to the policyowner if living after the later of 20 years, or age 85.

Types of Temporary Products:

Life Style Term – these plans consist of 10 years or 20 years Renewable and Convertible Term Insurance. The insured sum is level and premiums are guaranteed.

Life Style Term can be renewed until age 80 of the life insured, at which time the insurance terminates. These plans are also available on a joint – first to die basis;

Preferred Underwriting of Life Style Term – these plans allow applicant to be grouped into a greater variety of lifestyle categories resulting in a more appropriate premium being charged. In the past, healthier applicants subsidized the insurance costs of less healthy ones. Life Style Term rewards better risks with lower premiums. Three nonsmoker classes and two smoker classes are included in Preferred Underwriting classes available for Life Style Term;

Lifestyle Adjustment Plan (critical illness protection) – this plan is designed to provide funds helping you care financially for yourself and your family maintaining the same quality of life after surviving a critical illness.

The plan provides a tax-free lump sum living benefit to the plan owner on the occurrence of the first of the covered illnesses of the insured, provided the insured survives the waiting period following the critical illness onset.

The waiting period is 30 days from diagnosis, except for Loss of Speech (6 months) and Paralysis (90 days). No living benefit is payable if cancer is diagnosed within 90 days of issue.

Three types of Life style Adjustment plans are available: 10 year Renewable to Age 75, Level to Age 75 and Level to age with Return of Premium.Wawanesa Life has a plan to meet any your insurance and financial needs which can be tailored fitting your needs.

Gregory Mamnya

Your Independent guide to Wawanesa Insurance.

Wawanesa Life Insurance, Auto Insurance, Property Insurance and more at Wawanesa Insurance website.

You may be wondering “What is a term life insurance policy?” “Is it right for me?” Well, these are very important questions if you are considering taking a life insurance policy, and you will get these questions answered here.

Although there are different types of life insurance policies, basically all life insurance policies are either term insurance or while life insurance, or a combination of the two.

So, what is Term Life Insurance Policy And Is It Suitable For Your Life Situation?

Term life insurance policy is a form of protection for a specific period of time. It can be 5, 10, 15 or 20 years. The insurance policy expires at the end of the term period with no accumulated cash and there are no benefits payable. The death benefit is only payable if the policy owner dies during the term period. Some people define a term life insurance policy as “insurance that is actuarially designed to expire before you do”.

While the premiums on term life insurance are usually low, they do increase substantially as your age increases. Due to this fact, term insurance policy is the most economical when purchased at a younger age and when the term is longer. Short term renewable policies would be less expensive at the start but the renewal premiums increase significantly after middle age. As an example, the cost of a year’s premium can be $150 at the age of 35 and $2,500 at the age of 65.

What Are The 7 Tips For Finding The Right Term Life Insurance Policy and Company?

1. Unless you think you may want a cash-value policy in the future, a term life insurance policy is the best choice in most situations. Most term policies are essentially the same, and you can go with the lowest priced term policy. With term policies, you do not have to worry about claims disputes like you do with other types of insurance.

2. Just like with any other type of insurance, it is very important that you take the time to research and educate yourself and shop around for a policy that will best suit your financial circumstances and needs. The prices on term life insurance will vary across insurance companies, and there is no single company which can offer the deal for every customer. This is the reason why it is important for you to shop around and compare so that you can decide which company is offering you the best rate for your life insurance policy.

3. Online Internet access allows you the convenience to do your research and shop around, and take time to make your own decision under no pressure. Hundreds of websites are available to make your online shopping for insurance policy easy and quick. Using the simple and straightforward forms which insurance companies provide online, you can get your quotes within five to ten minutes.

4. The process of getting your online quote can be further simplified if you keep a record of the standard health questions which insurance companies ask about your health, namely weight, cholesterol level, blood pressure and family medical history. Give accurate answers to these questions.

5. It is important for you to fully understand your rights and responsibilities as a policy owner, before you sign up. If you need further clarification on any aspect of your policy, have an agent explain the details to you.

6. If you spend the necessary time shopping and comparing term life insurance policies, you will be able to get the best policy that suits your circumstances and your family’s needs.

7. Online internet access and the tools provided on the insurance companies’ websites, you are now able to get the best deal for your policy’s premiums.

Dean Shainin offers free online life insurance quotes. For more information, articles, news, tools and valuable resources on life insurance, visit this site: http://life-insurance.deans-knowledgebase.com Get free valuable online tips for saving money from his: Term Life Insurance Online website.

Life insurance provides financial protection for beneficiaries in the event of the insured’s death. Life insurance benefits can serve as a replacement of lost income to your family or to pay bills and final expenses. The best way to find the most affordable insurance is by understanding what types of insurance are available and what they provide for you.

Life insurance may be divided into two basic classes – Term and Permanent. Term life insurance provides life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered “pure” insurance, where the premium buys protection in the event of death and nothing else. There are less expensive premiums for younger people, but rates go up with age.

Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due. The policy cannot be cancelled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time.

The three basic types of permanent insurance are whole life, universal life, and endowment.

Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.

The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends.

Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equivalent if policies are kept in force until average life expectancy. Cash value can be accessed at any time through policy “loans”. Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only.

Universal life insurance is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. This rate has a guaranteed minimum but usually is higher than that minimum. Mortality charges and administrative costs are charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any.

A universal life policy addresses the perceived disadvantages of whole life. Premiums are flexible. The internal rate of return is usually higher because it moves with the financial markets. Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options. Option A pays the face amount at death and Option B pays the face amount plus the cash value.

But universal life has its own disadvantages, which stem primarily from its flexibility. The policy lacks the fundamental guarantee that the policy will be in force unless sufficient premiums have been paid and cash values are not guaranteed.

Endowments are policies, which mature before the normal endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. Annuities are a financial product issued by life insurance companies but are not life insurance policies.

Your insurance needs will change throughout your lifetime and your particular situation.

· Singles: Insurance needs primarily concern final expenses.

· Young parents: Insurance needs focus on family protection, income replacement and final expenses.

· Latter-stage parents: Insurance needs center on preservation of family income and lifestyle, final expenses, as well as funding for college expenses.

· Golden years: Financial and insurance needs focus on income/lifestyle protection for the surviving spouse, preservation of assets, estate distribution and final expenses.

Remember, if your life insurance policy is not doing what you need it to, you are not saving any money. Talk to a financial advisor, do your research and you will find the type of insurance that provides the benefits you need at the lowest cost.

Chris Simons is a freelance writer. You are welcomed to visit [http://life-insurance.cyberinformer.com], for more information on Life Insurance [http://life-insurance.cyberinformer.com].