What Is Personal Term Life Insurance?

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1 What Is Personal Term Life Insurance? Because you need all the facts.

2 What is personal term life insurance? Personal term life is the insurance YOU control. Term life insurance is a type of insurance in which you buy the protection for only as long as you want it. It is the most affordable choice among life insurance products. You select the term of the policy 10, 15, 20, up to 30 years. Because the term limits the period of time the insurance company, also called the carrier, is responsible to you, the carrier reduces its risk and your cost, potentially saving hundreds of dollars per year over other options. Even better, with SelectQuote, these already low premiums remain the same for the life of the policy. Term life insurance where the premiums stay the same is called level term life insurance. Term life is the most flexible choice of life insurance. You can stop coverage without penalty, but your carrier cannot cancel the policy during its term as long as you pay the premiums. Most insurance companies will allow you to convert to permanent insurance during the term. Or, at the end of the term, you may be able to elect to renew your policy with an adjusted premium without a new medical examination, no matter how your health may have changed. You choose to buy life insurance because you care enough about your loved ones to ensure that debts are paid, obligations are fulfilled, and long-term goals are attained even if you are no longer there to help. Life insurance helps to replace lost income and pay for the many services you provide for your family. Whether you are the primary income producer or the primary caregiver, you can obtain the reassurance that term insurance offers. SelectQuote sells term life insurance, providing consumers with Competitive prices The reliability of a financially stable company Experienced, licensed agents Impartial, independent advice Many underwriting specializations An excellent claim-paying record Responsive customer service for the full length of a policy Why buy term life through SelectQuote? SelectQuote specializes in term policies. To choose the right policy at the right price, you need someone with the experience, expertise, and impartiality that SelectQuote provides. Our agents search the companies we represent and match you with highly rated, dependable companies, then recommend the policy you should move forward with. We are independent from the insurance carriers we work with. Our agents are not compensated according to carrier commissions. They recommend the policies they do because the carrier and product constitute the strongest available protection for your family at the price you can afford.

3 Every term life policy SelectQuote sells gives you the option of renewing the coverage on a year-to-year basis once the initial period covered by the policy expires. Most importantly, renewal does not require you to take another medical exam or reapply, so you can continue your coverage even if there have been changes in your health. (Please note that the premium on your renewed policy will be significantly higher than the premium on your expiring policy.) In addition, most of the term policies SelectQuote sells can be converted to permanent life insurance (whole, universal, or variable) at various times during the term of the policy. You don t have to take another medical exam in order to convert your policy to a permanent life insurance policy. For more than 20 years, our agents have helped hundreds of thousands of people including cancer survivors and those with diabetes or heart disease purchase the coverage they need, from the companies we represent, at the best prices available. SelectQuote s menu of personalized options provides flexibility should your health or insurance needs change after your original purchase through SelectQuote. How much coverage do I need? Say you ve decided that term life insurance is the best purchase for you and your loved ones. Now you should determine the size of a policy that covers your needs. Would your family need to replace your entire income? For how long? What about childcare costs, college tuition, retirement, and long-term nursing? You have a lot to consider: commitments to keep, risks to assess, dreams to finance. You don t have a crystal ball, but you can anticipate a wide range of factors. Let us help you develop some rough figures for your application. When you and your SelectQuote agent talk, your needs will become clearer and your policy more customized. Let s do some rough calculations! Life insurance is designed to replace the income your dependents lose if you die. You need to be sure that your policy both covers your beneficiaries immediate expenses and provides a steady stream of income into the future.

4 Method 1, Using multiples One way to estimate your needs is to base a calculation on your current income. Financial experts typically recommend that the total of your life insurance coverage amount and liquid assets equal 5 to 10 times your annual income. We recommend that you use a multiplier of at least 7.5. For example, $50,000 x 7.5 = $375,000. If you do not have any other liquid assets, you might want to use a factor of 10: $50,000 x 10 = $500,000. If you re young and just starting a family, you may want to use a multiplier of 15, to replace future salary increases. For example, $30,000 x 15 = $450,000. My annual salary/income ($ ) x 7.5/10/15 = $.

5 Method 2, Estimating by budget Subtotal 1. Living expenses Monthly expenses ($ ) x 12 months x number of years ( ) = $ Example: $3,000 month x 12 months x 20 years = $720,000. Subtotal 2. Housing expenses (rent or mortgage plus taxes, maintenance & insurance) Monthly payment ($ ) x 12 months x number of years ( ) = $ Example: $1,500 per month x 12 months x 20 years = $360,000. Subtotal 3. Education expenses Average education expense ($ ) x number of dependents ( ) = $ Example: $40,000 x (2 children plus spouse who needs to retrain) = $120,000 Total basic expenses MINE EXAMPLE Add subtotal 1 $ $720,000 Add subtotal 2 $ $360,000 Add subtotal 3 $ $120,000 Total basic expenses $ $1,200,000 Subtract current assets Total savings, investments, other insurance - - $200,000 YOUR basic coverage needs: $ $1,000,000 Once you have gathered this information, you re ready to contact selectquote.com (or ). We re waiting to help you now.

6 How does the application process work? We re with you every step of the way. Step 1. Get a Quote. And by quote we mean a side-by-side comparison of several bids from some of the most trusted carriers in the industry (you bet we re picky). You can start the quote process online, or give us a call at to speak with one of our licensed agents. Either way, it takes only about 10 minutes of your time, because we do all the hard work for you (and we ve gotten pretty darn good at it over the years). If you start the process online you have the option to view a ballpark quote almost instantly, but we ll still need to give you a quick call to further customize the quote and help you evaluate your options. It s 10 minutes well spent. One last thing, remember that quotes are only an estimate and are subject to a medical exam. Step 2. Choose your insurance. Now that you have your personalized quote with bids from a variety of carriers, it s time to choose the plan that suits you best. We re happy to discuss the options with you in detail if you d like a bit of experienced and unbiased perspective. We say unbiased because we re one of the only companies who really doesn t care which carrier you choose. We aren t in cahoots with any of them, as we only have eyes for you. If you re feeling frisky, all of this can be done on that first call we mention in step 1. But we re more than happy to take things slowly if that s more your speed. Step 3. Get a mini medical checkup. You will meet with a technician for a mini medical exam in the convenience of your home or office. Our exam technician will measure your height and weight, as well as take blood and urine samples. The exam typically takes just 15 to 20 minutes, and your results will be strictly confidential. We ll even throw in a lollipop if you re good. Want to ace your exam? Follow these tips to get the best results possible: 1. Schedule for early in the day at a time and place you feel relaxed

7 2. Avoid fatty foods, rich desserts, and alcohol for several days beforehand 3. Do not eat or drink anything but water for 8 to 12 hours beforehand Step 4. Receive a decision. It s decision time. Your selected life insurance carrier will give you their final decision on issuing you a term life insurance policy. Assuming you re accepted, your first premium payment will be due by this time. If, for some reason, you aren t accepted by a particular carrier, we ll work with you to find coverage through another. Step 5. Start your coverage. Congratulations! You ll receive your term life insurance policy in the mail, along with the peace of mind that goes with it. You ll also begin making your monthly or annual premium payments. And don t think you re getting rid of us that easy. We ll be around as long as you need us. Anytime you have any questions or concerns about your term life insurance policy, all you have to do is give us a ring at Your satisfaction is our number one priority, so if you re not totally satisfied with your coverage, we offer a 30-day money back guarantee. Not many people take us up on this one, but we try not to take it personally. What s so special about SelectQuote s Policyholder Services? Once your policy takes effect, our Policyholder Services department is available to support you for the life of the policy. Most term life insurance sales agency services end when you sign on the bottom line. At SelectQuote, we maintain a fully qualified service staff to help you whenever you have questions or concerns, or need to change your coverage in some way: Making simple address changes Updating your beneficiary Acting as your advocate with the insurance company Helping your beneficiaries make a claim You choose SelectQuote because we are here for you.

8 Frequently asked questions 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 policies, chosen from the offers of competing insurance companies, helping customers save hundreds of dollars on their policies. Since then, hundreds of thousands of people have saved millions of dollars on their policies 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 with our customers existing coverage. If we can save you even more on your existing policy, we ll let you know. Is SelectQuote licensed in my state? SelectQuote is licensed to sell life insurance in every state except South Dakota. What s more, your agent is fully licensed in your state. How confidential is my information? Completely. No one has access to your information other than SelectQuote and the insurance carrier you decide to use. We never sell your name, address, or personal information. 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 that only generate leads and sell your contact information, we are a full-service sales agency that helps you throughout the process.

9 What does guaranteed mean? Guaranteed refers to the annual premium you pay on your policy. For example, a fully guaranteed level 20-year term means that your premium is guaranteed to remain the same, or level, for a full 20 years, provided 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 level 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 does it take to get a policy? Typically, it takes four to eight weeks after your application is submitted to get the policy in your hands. 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 by state but are explained in detail on your insurance application. Your SelectQuote licensed agent will explain how it works. How do I get started? Go to and click I m Ready to start your application. Or call to speak directly with a licensed agent.