Find the Best Online Life Insurance Quotes for Your Needs

In today’s digital age, obtaining life insurance has never been easier. With online life insurance quotes through PolicyWand, you can quickly explore various options and find the best term life insurance company to suit your needs. Whether you’re seeking a quote for life insurance online, specifically interested in no medical exam life insurance, or looking for a million-dollar life insurance policy, the convenience and simplicity through PolicyWand makes the process seamless. Let’s delve into the advantages of no medical term life insurance, compare quotes for term life insurance policies, and discover the best life insurance companies in the USA—all at your fingertips.

Evaluating No Medical Exam Life Insurance:

For those seeking a hassle-free experience, no medical exam life insurance is an ideal choice. By eliminating the need for medical examinations, these policies streamline the application process, making it quicker and more convenient. You can secure term life insurance with no medical exam, ensuring that you receive coverage without the delay of in person medical evaluations. This option is particularly beneficial for individuals who prefer efficiency and convenience when obtaining life insurance.  Get your No Medical Exam Life Insurance Quotes here.

Unveiling Term Life Insurance Policy Quotes Online:

Obtaining quotes for life insurance online empowers you to make informed decisions about your coverage. By utilizing PolicyWand’s online platform, you can easily compare term life insurance policy quotes from multiple providers. This allows you to evaluate the terms, coverage amounts, and premium rates offered by different companies, enabling you to find the most suitable policy for your needs. With a few clicks, you gain access to a wealth of information that helps you choose the right term life insurance policy.  See your quotes now and compare Term Life Insurance policies here.

Seizing the Benefits of Online Term Life Insurance Quotes:

PolicyWand offers online term life insurance quotes providing you with a comprehensive overview of available options while enabling you to conduct a thorough comparison. You can assess coverage amounts, policy durations, and premium rates, allowing you to tailor the policy to your specific requirements. By utilizing online tools like our online life insurance calculator, used to help you determine just how much life insurance you need, you have the flexibility to modify coverage amounts and policy terms to find a plan that fits your budget and offers optimal protection for your loved ones.

Comparing Life Insurance Carriers for a Comprehensive Analysis:

When it comes to securing the best life insurance coverage, comparing quotes is essential.  PolicyWand offers a convenient way to compare multiple life insurance carriers side by side by clicking here. By utilizing these tools, you can examine coverage options, premium rates, and policy features, facilitating a comprehensive analysis. This comparison empowers you to make an informed decision and select a policy that provides the right balance between affordability and adequate coverage.

Discovering the Best Life Insurance Companies in the USA:

In your pursuit of the best life insurance, it’s crucial to consider reputable providers. The United States is home to several top-tier life insurance companies known for their reliability, customer service, and financial stability. By exploring online resources and reviews, you can identify the best life insurance companies in the USA. PolicyWand brings you companies that offer competitive rates, flexible coverage options, and excellent customer satisfaction, ensuring peace of mind for you and your family.

In the era of online accessibility, obtaining life insurance quotes has never been more convenient. At PolicyWand, you have the ability to acquire online life insurance quotes, compare policies, and explore options such as no medical exam life insurance, you have the tools at your disposal to make an informed decision. Take advantage of the benefits of online term life insurance quotes, compare quotes for term life insurance policies, and discover the best life insurance companies in the USA. Click here, to start your journey towards securing the best life insurance coverage that suits your needs with just a few clicks.

Protecting Your Family’s Financial Future with Term Life Insurance

Life insurance is a crucial component of a comprehensive financial plan, particularly if you have a family that depends on your income. While it may not be the most exciting purchase, it offers a promise to safeguard your loved ones’ financial well-being should the unexpected occur. Term Life Insurance is an affordable option that can provide the necessary coverage, ensuring your family’s needs are met even when you’re no longer able to provide for them.

Securing Your Family’s Future With Term Life Insurance

Covering Educational Costs:

If you have children, one of your primary concerns may be ensuring their educational needs are met. Term life insurance can help bridge the financial gap by providing a death benefit of $250,000 per child, helping to cover their educational expenses and ensuring they have access to quality education.

Clearing Debts:

Outstanding debts can burden your family in the event of your passing. To alleviate this financial strain, it’s essential to have a life insurance policy with a death benefit equal to your debts. This ensures that your loved ones won’t be burdened with paying off loans, mortgages, or other financial obligations on their own.

Sustaining Income Replacement:

Providing a steady stream of income to your family is crucial to maintaining their current standard of living. Term life insurance can offer a reliable solution, replacing a portion of your income even after you’re gone. Generally, every $1 million of life insurance coverage can replace an annual income of approximately $50,000 to $60,000, allowing your family to continue meeting their financial needs.

Employer Coverage Isn’t Enough

While many employers offer life insurance coverage as part of their benefits package, it’s important to understand why this coverage may not be sufficient to fully protect your family in the long term. Here are a few reasons why relying solely on your employer’s coverage may not be advisable:

Insufficient Death Benefit:

Employer-provided life insurance often offers a death benefit that is a multiple of your annual salary, which may not be enough to meet your family’s financial needs in the long run. It’s crucial to assess your family’s specific requirements, such as educational costs, outstanding debts, and ongoing income replacement, to determine the appropriate coverage amount.

Lack of Portability:

One significant drawback of employer coverage is its lack of portability. If you change jobs or leave your current employment, you may lose the life insurance coverage provided by your employer. This can leave your family vulnerable if you’re without coverage during a transition period.

Limited Customization:

Employer-provided life insurance policies typically offer limited options for customization. They may not allow you to tailor the coverage to meet your family’s unique needs or provide additional benefits, such as riders for critical illness or disability.

Shopping for Term Life Insurance Made Easy at PolicyWand

Finding the right term life insurance policy can be overwhelming, but it doesn’t have to be. Online platforms like PolicyWand simplify the process by providing term life insurance quotes comparison from top-rated carriers effortlessly. With no pushy sales calls, you can browse and select from term life insurance policy quotes and get coverage that meets your family’s specific needs at your own convenience.

While no one likes to dwell on the possibility of tragedy, ensuring your family’s financial security is a responsible step to take. Term life insurance provides an affordable way to protect your loved ones in the event of your untimely passing. By addressing educational costs, clearing debts, and sustaining income replacement, you can offer your family the financial freedom they deserve. Take the first step towards safeguarding your family’s future by exploring quotes for life insurance online today. Remember, PolicyWand is here to assist you, providing a hassle-free experience and valuable support when you need it.

Finding the Best Term Life Insurance: A Comprehensive Guide by PolicyWand

Term life insurance plays a crucial role in providing financial protection for your loved ones in the event of your untimely passing. However, navigating the search for the best term life insurance policy can feel overwhelming. This comprehensive guide, brought to you by PolicyWand, aims to assist you in finding the ideal coverage that meets your unique needs and offers peace of mind.

Assess Your Needs

PolicyWand’s custom calculator considers your outstanding debts, dependents, and future expenses. When calculating how much coverage you need, we take into account factors such as mortgage payments, children’s education, and ongoing financial responsibilities. Our calculator will help you to determine the duration of coverage required and the appropriate amount of death benefit necessary to secure your loved ones’ financial stability.

Compare Multiple Quotes

After you receive your death benefits needs results, you will be presented with quotes from today’s top ranked insurance carriers. Here you will be able to compare policies, premiums, and the benefits they offer.   Make sure you utilize our carrier comparison tool to simplify the process of choosing the best carrier for you.  Remember, while a lower premium may seem attractive, it’s important to also consider the insurer’s reputation, financial strength, and conversion options.

Check the Insurer’s Reputation and Financial Strength

PolicyWand recommends utilizing our comparison tool to review the reputation and financial stability of the insurance company before making a commitment. You’ll find ratings from reputable agencies such as A.M. Best, Moody’s, or Standard & Poor’s to help you assess the insurer’s financial strength.

Seek Expert Advice

PolicyWand is a do-it-yourself platform and we’ve provided you with tools to assist you with getting term life insurance policy quotes and in the purchase of your policy.  However, we have some of the top licensed agents standing by to assist you with any questions you may have. Their expertise can provide you with personalized guidance based on your individual circumstances. They can help you navigate the complexities of term life insurance, find the best term life insurance company and offer unbiased advice to help you make the best decision for your needs. Our agents are not commissioned so rest assured they are working with your best interest at heart.

Finding the best term life insurance policy requires a thoughtful evaluation of your needs, diligent research, and, if needed, expert guidance. By considering these factors and utilizing the resources provided by PolicyWand, you can secure the future financial well-being of your loved ones with a term life insurance policy that offers the right coverage and peace of mind.

Life Insurance and Professional Athletes

It is common for professional sports teams to purchase life insurance policies on their athletes, particularly those who are highly valued and important to the team’s success.

The purpose of this type of insurance is to protect the team’s financial investment in the athlete in the event of their untimely death. If a star athlete were to pass away unexpectedly, it could have a significant impact on the team’s performance, as well as its revenue streams from ticket sales, merchandise, and advertising.

Life insurance policies on athletes can be quite expensive, depending on the athlete’s age, health, and level of risk. In some cases, insurance companies may require that the athlete undergo a medical exam or disclose information about their health history to qualify for coverage.

Overall, while the practice of purchasing life insurance on athletes is not universal, it is common among professional sports teams, particularly those in high-risk sports like football, hockey, and boxing.

Here are a few examples of professional sports teams that have purchased life insurance policies on their athletes:

  1. New York Yankees: In 2011, the Yankees purchased a life insurance policy on their star third baseman Alex Rodriguez. The policy was reportedly worth $20 million and would have paid out to the team in case Rodriguez had suffered a career-ending injury or passed away during the term of the policy.
  2. Houston Rockets: In 2019, the Rockets purchased a life insurance policy on their superstar guard James Harden. The policy was worth $10 million and would have paid out to the team in case Harden had suffered a career-ending injury or passed away during the term of the policy.
  3. Manchester United: In 2017, Manchester United reportedly purchased a life insurance policy on their star midfielder Paul Pogba. The policy was worth £200 million and would have paid out to the team in case Pogba had suffered a career-ending injury or passed away during the term of the policy.
  4. Green Bay Packers: In the 1990s, the Packers purchased a life insurance policy on their star quarterback Brett Favre. The policy was reportedly worth $100 million and would have paid out to the team in case Favre had suffered a career-ending injury or passed away during the term of the policy.

Unfortunately, there have been instances of professional athletes passing away while under contract with their respective teams. Here are a few notable examples:

  1. Sean Taylor: In November 2007, Washington Redskins safety Sean Taylor was shot and killed at his home during a robbery. Taylor was just 24 years old and was in the middle of his fourth season with the team.
  2. Reggie Lewis: In July 1993, Boston Celtics star Reggie Lewis passed away due to a heart condition while he was still under contract with the team. Lewis was just 27 years old and had been a two-time NBA All-Star.
  3. Steve Bechler: In February 2003, Baltimore Orioles pitcher Steve Bechler passed away due to heatstroke while he was attending spring training. Bechler was just 23 years old and had only played in one Major League game at the time of his passing.

These tragic events serve as a reminder of the risks that athletes face, both on and off the field, and the importance of prioritizing their health and well-being.

In some of these cases, the team did have life insurance policies on the players who passed away.

In the case of Reggie Lewis, it has also been reported that the Boston Celtics had a life insurance policy on Lewis that was worth $14 million. The policy reportedly covered Lewis for accidental death and dismemberment, which would have provided financial support to his family in case of his passing.

It’s worth noting, however, that not all athletes have life insurance policies purchased on their behalf by their teams, and even when such policies exist, the amount of coverage can vary widely. In general, it’s important for athletes and their families to carefully consider their own insurance needs and to ensure that they have adequate coverage in place to protect against unexpected events.

While most of us aren’t professional athletes, Life insurance is still important for the rest of us because it provides financial protection for our loved ones in the event of our unexpected death.

Here are a few reasons why life insurance is important:

  1. Protects your family’s financial future: If you were to pass away unexpectedly, your family would be left to cover any outstanding debts, funeral expenses, and ongoing living expenses on their own. Life insurance can provide a lump sum payment to your beneficiaries, which can help cover these expenses and ensure that your family’s financial future is protected.
  2. Provides peace of mind: Knowing that you have life insurance coverage in place can provide you with peace of mind, as you’ll know that your loved ones will be taken care of if something were to happen to you.
  3. Can be affordable: Life insurance policies can be relatively affordable, especially if you purchase coverage when you’re young and healthy. By locking in coverage early, you can often secure lower premiums and ensure that you have protection in place for the long term.
  4. Can help with estate planning: If you have significant assets or estate tax liabilities, life insurance can be used to help cover these expenses and ensure that your heirs receive the assets you intended to leave them.

Overall, life insurance is an important tool for protecting your family’s financial future and ensuring that they are taken care of in the event of your unexpected death. By purchasing coverage early and regularly reviewing your policy, you can ensure that you have the protection you need to provide for your loved ones.

PolicyWand offers Free online life insurance quotes and gives you the ability for Life Insurance quotes comparison so that you can weigh the pros and cons of each option and carrier before you apply.

Term Life Insurance Riders Provide Benefits While You’re Still Alive

While term life benefits are designed to provide benefits for your family after you die, you can benefit from the policy while you’re still alive if you need to. How? Through a rider.

Let’s say you buy a 20-year term life policy with a death benefit of $250,000. Four years into having the policy you’re diagnosed with a terminal illness and given a life expectancy prognosis of two years. A term life rider would allow you to use some of that $250,000 to help pay for medical bills, hospice, or even a trip to a place on your bucket list. You determine how you want to use it, if at all.

There are four types of term life riders you can add to your term life policy that enable you to use the benefit from your policy while you’re still alive.

Types of Term Life Riders

Terminal Illness Rider. Also known as an accelerated death benefit, this rider allows you to use your coverage amount to pay for end-of-life care, debt, or that bucket-list trip. Whatever you need to help make your last days more comfortable.

Critical Illness Rider. This rider allows you to use your death benefit to pay for medical care for a specific illness that isn’t terminal but can shorten your life expectancy, such as a stroke or heart disease. Some carriers call this rider a Long Term Care (LTC) Rider.

Return of Premium Rider. This rider returns the money you paid in premiums once you’ve outlived your policy term. So if you paid $800 a year for 20 years beginning in 2020, you get back $16,000 when the term ends in 2040.

Disability Waiver of Premium. This allows you to stop making premium payments and still keep the policy should you suffer an illness or injury that prevents you from working.

How Term Life Insurance Riders Work

The main thing to know about term life riders is that whatever funds you use from your death benefit will be deducted from the payout going to your loved ones after you pass away.

Also, some carriers require that you have the policy for a specific amount of time before you are allowed to withdraw funds from your death benefit.

Your illness must meet the criteria set by both your insurance carrier and the state you live in. To collect funds on a Chronic Illness rider, you must prove that you are unable to perform two of the six Activities for Daily Living (ADL) such as eating, moving, bathing, dressing, and toileting or continence, and other eligibility requirements.

Life expectancy timelines for terminal illness benefits differ among carriers, too. Most stipulate a life expectancy of two years to collect the benefit. It’s important to know what your carrier’s guidelines are if this is a rider you’re interested in buying.

It Isn’t About Who Has the Lowest Life Insurance Quote

As enticing as a low quote on life insurance is, it’s a preview, not the whole story. And life insurance websites that tout the lowest quote will not always guarantee the lowest monthly rate.

Why? Because not everyone who buys a life insurance policy is going to pose the same risk to a carrier providing coverage. Insurance carriers need to keep risks minimal to ensure everyone gets a fair premium.

And how do they do that? With risk classifications. These determine what you’ll pay based on how likely the carrier will have to pay out to your loved ones in the event you pass away.

Life Insurance Risk Classifications

When the life insurance company approves your application, their underwriters assign you a risk classification largely based on your health questionnaire and medical exam.

Classifications are made up of people who share the same characteristics that pose a specific level of risk to the company of paying out a death benefit sooner rather than later. The standard risk classification is the baseline. People in preferred risk classifications have the least risk characteristics and pay the lowest premiums; people in the substandard risk classifications have the highest risk characteristics and pay the highest premiums.

It would be great if the life insurance industry used the same names and requirements for these classifications, but they don’t. However, this may be to your advantage.


Because some carriers have strengths their competitors don’t when it comes to these classifications.

One company may consider a BMI of 25 to be optimal and therefore place it in the risk class with the lowest premium; another may see it as acceptable but put it in a risk class with a higher premium.

One company may classify your annual scuba diving trip in one risk class and premium and another company may place it in a higher risk class with a higher premium.

It all depends on the carrier.

It gets even more complicated when you factor in table ratings.

Life Insurance Table Ratings Chart

Anyone who falls below standard risk is placed in the substandard risk classification and will pay more than the standard risk rate. How much more will depend on their table rating. Substandard risk is where the table ratings kick in.

Underwriters use a life insurance table ratings chart to assess how much those who fall into substandard will pay above the standard rate. Increases generally occur at increments of 25%.

Table rates are identified by numbers or letters. Some carriers use numbers and some use letters. But basically, if you are table rated 1 or A, you will pay 25% more than standard rate, 2 or B 50% more, 3 or C 75% more and 4 or D 100% more and so on.

So let’s look at a table rating in action.

Mary is a 35-year-old woman looking at the average life insurance cost per month for a $1 million life insurance policy. She is looking at a 20-year term policy.

She got a quote of $27 per month from Company A.

Mary admitted she smokes when she got the quote. The medical exam she underwent during underwriting claims she’s in otherwise good health. But her driving record reveals she’s had a couple of driving tickets in the past year. (Yes, those do count.)

Company A places her in a substandard risk classification because of her smoking. So, she’s already going to pay more than a nonsmoker. However, they consider her driving risky behavior and give her a Table 1 rating, which adds 25% to her rate. So now, rather than paying $324 per year, she’s paying $405.

Company B quoted Mary $29 per month but doesn’t consider two tickets to warrant a table rating. She ends up paying $348.

Had she gone with the lowest quote, she would’ve ended up paying more than she would if she’d gone with a higher quote.

A low quote is a great place to start. But they can be misleading. You want to collaborate with a company that gives you the whole story.

Term Life Insurance for Diabetics

Can you get life insurance if you have diabetes? Absolutely. You need it.

Diabetes is no joke. According to the Centers for Disease Control and Prevention, 16% of adults aged 20 and older are living with diagnosed or undiagnosed diabetes. More than 100,000 people died of it in 2020. It’s currently ranked the eighth cause of death.

If you’re diabetic with dependents, it’s important you have life insurance to protect you if you’re no longer there to support them. Term life insurance is perfect because it offers protection during the period of life when you most need it—while you’re in your peak earning years and raising your family.

As a diabetic applying for life insurance, it’s important to know what to expect as you shop for the best term life insurance company for you.

How Life Insurance Companies Evaluate Diabetics

Term life insurance provides coverage for a specific amount of time (term) with a set premium and a set benefit payout. For example, you can buy a 30-year term policy for a $250,000 benefit payout with a $25 per month premium.

All life insurance policies and their premiums will vary based on your age and health. The younger and healthier you are the less you will pay. So, diabetics on average pay more than a person without diabetes. How much more you will pay depends on your diagnosis, diabetic health history, co-conditions, and other variables.

As an applicant with diabetes, your health will naturally be looked at closer than someone without it. Expect to at least be asked additional health questions and most likely undergo a medical exam and lab tests. Some of the things life insurance carriers will want to know about include:

  • Your diagnosis – this is the one area where the axiom about the younger you are the less you’ll pay doesn’t apply. For diabetics, the older you are when you’re diagnosed the less you’ll likely pay. A diagnosis at an early age may suggest more life-threatening disease.
  • Your diabetic health history – They may also request an attending physician statement (APS) to gain insight as to how you’re managing your diabetes.
  • Any diabetes-related co-conditions (heart disease, kidney disease, impaired vision, etc.)
  • Your sugar levels – A1C levels over 7 may affect your premium.
  • Your medications – what you take, how often you take them and for how long you’ve taken them

What to Do If You’re Denied Life Insurance Because of Your Diabetes

Look into guaranteed issue life insurance, which requires no medical exam or health questionnaire and offers guaranteed approval in most cases. The premiums are high, and the coverage maxes out at $25,000, but it provides a cushion for your family to plan next steps in the event your diabetes or related illness takes you away from them.

If your diabetes isn’t severe, try simplified issue life insurance, which has a lower rate and a coverage cap of $50,000. You’ll have to answer some medical questions but again, if your diabetes is less life threatening, it may be worth looking into.

Final expense insurance, also known as burial insurance, is also an option. It will cover outstanding debt and/or funeral expenses so your family won’t be burdened with them.

Like anything else, it pays to shop around. It’s easy as ever to get the best life insurance quotes online for a thorough term life insurance quotes comparison. Then go into the underwriting process confidently, armed with the information you need to get the best deal possible.

How Life Insurance Affects Your Taxes, Simplified

They say nothing is sure but death and taxes.

If you’re reading this, you probably already have life insurance or are seriously considering buying a policy to protect your family. And you probably know how life insurance works.

You buy a policy for a certain amount of coverage, say $250,000, for which you pay a monthly premium of say, $25. Should you die while the policy is active, your beneficiaries receive the $250,000 payout.

What you now want to know is, how will life insurance affect your taxes? What follows are some highly simplified explanations for a variety of “death and taxes” situations.

How Term Life Insurance Affects Your Taxes

If you have a term life policy, your beneficiaries won’t have to pay taxes on the payout they receive.

Term life policies are straightforward. You pay a monthly premium for a set amount of time, and you receive a set amount in death benefit. End of story.

But if you expect a tax break on your premium, you’re going to be disappointed. The IRS considers life insurance premiums a personal expense and therefore not deductible.

How Permanent Life Insurance Affects Your Taxes

Because permanent life insurance policies produce cash value, the IRS looks at types of permanent life insurance such as whole life and universal life differently than they do term life.

Interest earned on a permanent policy is tax-deferred, i.e. not taxed if it remains untouched. However, if you withdraw it, it will be subject to income tax.

Life Insurance Annuities and Taxes

If your beneficiary collects your death benefit in installments, the payouts will be considered income and subject to income tax.

Life Insurance and Estate Tax or Inheritance Taxes

If your life insurance policy is wrapped up in an estate, your beneficiaries will owe an estate tax if the estate is worth more than the IRS threshold, which for 2023 is $12 million for an individual beneficiary and $24 million for a married beneficiary filing jointly.

If the estate is worth less than that, they will owe no tax.

Some states levy an inheritance tax. States vary on the threshold so consult a tax attorney in your state to find out what your beneficiaries may or may not have to pay.

Accelerated Death Benefits and Taxes

Although you can use the benefit from an accelerated life insurance policy while you are still alive, it is not taxable.

Transfer for Value Life Insurance and Taxes

If you sell (settle) or surrender your life insurance policy, you will pay tax on any monetary or material value above what’s called the policy basis.

The policy basis is the policy’s cash value minus premiums you paid and required administrative fees. Anything you receive above the policy basis will be taxed as income.

Again, these are highly simplified explanations for situations that can be complicated. As with any financial decision, it’s important to consult with a tax professional or financial advisor to determine the tax implications related to any life insurance policy you’re considering purchasing.

Does Term Life Have Cash Value? Cash value life insurance explained

Technically there’s no such thing as term life cash value. With term life insurance policies, you pay a specific premium for a specific amount of time (term) and receive a specific payout in the event you die before the term ends. Even the best life insurance companies in the U.S. don’t offer traditional term life insurance with cash value. There’s no time to build it.

However, there are some ways to use a life insurance policy to build it.

Firstly, what’s cash value?

Cash value is money accrued from a life insurance policy over time. The longer you have the policy and the more you pay into it, the more cash value you build.

Cash value is a savings component. You build interest in a tax-deferred investment account your insurance company provides. Part of the rate you pay will go to your premium and administrative fees; the other part will be invested to build interest.

So, it’s more expensive than traditional term life insurance. Also, the savings component varies based on market conditions and your insurance company’s investment performance.

But the great thing about cash value is you can borrow against it or use it to pay your premiums. You can also surrender or cash out your life insurance policy.

What types of life insurance build cash value?

Permanent life insurance policies build cash value. These include whole life and universal life.

Universal Life Insurance (UL) is a type of permanent life insurance that builds cash value and has characteristics closest to those term life has. UL premiums, like term life premiums, are lower. So, you pay a lower premium but still enjoy building cash value. UL insurance has its drawbacks, but it is the closest thing to term life with cash value you can find.

Whole life insurance builds cash value but has set premiums and less flexibility. And it’s more expensive than UL.

Alternative Ways to Leverage Term Life Insurance for Cash

Buy a Return of Premium (ROP) Rider

An ROP is a rider you can add to your term life insurance policy. It enables you to receive a refund on the premiums you paid into it. It also has its drawbacks but is a way to use your term life policy as a savings component.

Sell Your Life Insurance Policy

Technically called a life settlement, you can sell your policy for a cash payment. It won’t be for the whole value of the policy, but a percentage of it. Typically, it’s investors who buy policies. They’re mainly interested in older policyholders because it will take less time to see a return on their investment.

If you want to sell your policy, it’s best to find a broker to handle it.

Convert Your Policy

Young people with young families tend to buy term life insurance because it protects their families at an affordable rate. They aren’t necessarily interested in or able to buy a cash value policy.

However, as children grow their needs grow. Many times this coincides with higher income. So, it may make sense to convert your term policy to a permanent one and enjoy building cash value.

So, to answer the question put forth in the post title, does term life insurance build cash value, it does not. But it can be an effective springboard toward building it in other ways.

Underwriting: How Life Insurance Rates Are Determined

Since its inception, life insurance has been about relationships—protecting those you care about. You want to get life insurance to protect the ones you love. Life insurance enables you to do that. Underwriting ensures you receive the best life insurance rates possible from the best life insurance companies in the U.S.

What Is Underwriting?

The dictionary says that to underwrite something means to accept responsibility for guaranteed payment in case loss or damage occurs.

The business of underwriting is a vetting process. The insurance company wants to make sure you’re a good insurance risk. And they want to make sure you can afford the premium. It’s also your chance to choose the best company for your needs.

In relationship terms, underwriting ensures the relationship between you and your life insurance company is a strong one. You just have to find a company you can work with.

Every life insurance company has its own set of standards and guidelines as to what constitutes an acceptable risk and what they’re not willing to cover.

There are two types of underwriting: full and accelerated.

Full underwriting is the traditional kind. It includes a medical exam and lab tests. It takes between six and eight weeks.

Accelerated underwriting requires no medical exam or tests, so it takes less time. However, no-exam life insurance can be more expensive than fully underwritten policies. AI has made it easier to streamline the process through technology called insurtech, which uses algorithms and machine learning to go through data quicker.

How Underwriting Works

The Application

The underwriting process kicks in once you’ve submitted your application. That application asks about your height, weight, habits (smoking, drinking, exercising), hobbies, and questions about your current and past health as well as your family’s health history.

The Phone Interview

The phone company will set up a call to ensure the information you provided on the application is correct. It takes no more than 30 minutes.

The Medical Exam and Lab Tests

This is a free exam of your height, weight, BMI, blood pressure, and blood and urine tests.

If your tests reveal red flags, the insurance company may order an Attending Physician Statement (APS) to find out if there are any underlying conditions.

They will also conduct a prescription check of all medications prescribed to you in the past three to five years.

The Motor Vehicle Report

The insurance company will also look at your driving record. Tickets, accidents and DUIs can mean you’ll pay a higher premium. Some companies will deny a life policy based on a DUI.

The Actuarial Tables

This is where the underwriter takes the collected data and compares it to actuary tables to help get a sense of your life expectancy. The mortality table is a statistical baseline that uses your age and gender to predict when you’re most likely to die.

They may also use a build table, which uses your height and weight to further predict your life expectancy.

The older and heavier you are, the higher your premium will be.

The Risk Classifications

The insurance company uses classifications made up of people who share the same characteristics posing a specific level of risk. This is what will determine how much premium you will pay.

For instance, if you’re in excellent health, don’t smoke, work a desk job, have a clean driving record and have no risky hobbies, you’ll likely be classified in the Preferred Best, or Preferred Select group, which pays the lowest premiums.

Most people are placed in the Standard class, with characteristics being a bit overweight, having some medical issues and dings on their driving records, and engaging in a risky hobby or two once or twice a year.

To be in this group, you have to have been smoke-free for at least a year. People in this classification pay the baseline rate. If you smoke, you’ll be placed in a substandard class and pay a higher rate.


Once the company assigns your rating, they send you the contract for signature. If you’re not happy with the premium offered, you can negotiate or look for another company to work with. As stated earlier, every life insurance agency has different guidelines about what they are willing to risk and what they aren’t.


Your online life insurance quotes are the beginning. Underwriting allows you to find the best life insurance with the best company you can go the distance with.