Lifedepartment.com - Serving You

1. After the initial guaranteed premium period, what happens to the cost of my insurance?
The best value in term life insurance is obtained by matching the level premium period with the length of the insurance need. For example, if you are a young couple with a new 30 year mortgage, then a 30 year level premium guarantee is probably your best option.

Assuming that you will qualify for the best rates 20 years in the future may prove costly. The ability to predict the future does not exist and your future health may change. Term Life provides a guaranteed level premium period at guaranteed affordable rates. After that intial guarantee period, the rates will dramatically increase each year.

In the event you develop a health problem, the policy's conversion option becomes extremely valuable. It permits you to continue your insurance for your lifetime at the initial underwriting classification by converting to a whole life policy. Of course, the annual premium will be higher than the term life insurance policy, however,the conversion option assures your family can obtain insurance when you are most vulnerable.

2. I have been declined for insurance, can I still qualify?
Maybe…
Our experience in the insurance business combined with access to many leading insurance companies usually leads to results. We have been able to obtain insurance when other agents have not. There are many companies and each has their own underwriting philosophy and comfort level. Understanding the marketplace, we have learned to direct underwrtiing risks to the insurance company historically most comfortable with that type of risk. Our job is to professionally qualify you, understand your situation, investigate the marketplace for the best carrier, keep you informed of the results.

If you have been rated or declined by another carrier, and you are serious about implementing coverage, our agency can nearly always obtain an offer. Contact (888) 455-1403 and ask for the advanced underwriting team leader.

3. Should I buy a policy on my child, or grandchild?
Yes…
We recommend a $25,000 whole life policy on each child. Why? The guaranteed lifetime level annual premium cost is very low, the premium is guaranteed for the child's lifetime and the benefit increases with every dividend.

4. If I apply today, when will the coverage start?
ARE YOU REPLACING? If you are replacing existing coverage, we recommend you keep your existing policy in full force and effect until a suitable replacement policy is in effect.
Life insurance is an underwritten coverage. If you apply today, your coverage will begin on the day your policy is delivered, acknowledged by a witnessed signature and your first premium is received by either your agent or the company.

5. I have a green card, can I get life insurance?
If you must a green card and also have a permanent resident status
for at least one year, most life insurance companies to consider you for coverage.

6. What are the claim procedures when someone dies?
When a loved one passes away it is a difficult time for everyone. Our professional staff will assist your beneficiary claim the policy benefit in a respectful and courteous manner. Loosing a loved one is always difficult and sometimes shocking. Our agency’s staff demonstrates compassionate service everyday. In general, when we receive notice of death by your beneficiary, we initiate the claim process. We assist your beneficiary through the claim process step-by-step. The claim process requires, a death claim form and a certified death certificate. Additional forms may be required as well, such as a W-9 proof of tax id.

7. Have term insurance rates fallen in recent years?
YES.
Beginning in the late 1990’s, many leading companies began lowering the premium cost for term insurance. This has continued to the great benefit of the buying public. At this time, the rates for term life insurance are extremely affordable. This offers a financial planning opportunity to lock in long-term guaranteed pricing including future insurance options at tremendous value.

Some of the reasons for the price reductions are; increasing mortality age, people living longer, technological efficiency, lower statutory reserve requirements and reduced company expenses.

8. How much life insurance do I need?
Peace of mind is a great benefit of life insurance. Knowing that your family is financially secure is important to us. We developed a needs analysis calculator for your convenience. The calculator offers our recommendation, which is…
Present value of 70% of your income until your spouse turns age 70, 6% discount rate.
+ Debt
+ Present value of future college education expenses for children
+ 3 months of income for an emergency fund
+ final expenses - $20,000
= Your Insurance Need

9. What are the ratings services used by the insurance industry?
The main rating services and the rating criteria are:
- A.M. Best A++, A+, A, A-, B++, B+
- Standard & Poor's AAA, AA, A, BBB, BB, B, CCC
- Moody's Aaa, Aa, A, Baa, Ba, B
- Fitch AAA, AA, A, BBB, BB, B
- Weiss A+, A, A-, B+, B, B-, C+, C

We monitor the financial rating information on several hundred life insurance companies. We promote insurance companies with a record of financial strength demonstrated by higher ratings. We screen out companies if there ratings are inadequatem, which we believe is an A.M. Best A rating or better.

Top ratings do not assure teh strength of an insurance company. The ratings are simply there to simplify the research process during the insurance review process. We are happy to review the ratings of the carriers and offer a ratings report upon request.

10. How long do I have to quit smoking cigarettes before I can apply for lower rates?
Non-tobacco insurance rates are substantially lower than tobacco use rates... It is a great incentive to quit smoking cigarettes.

Insurance companies underwrite tobacco usage differently. Speak with our advanced underwriting team at (888) 455-1403 for a recommendation.

In general, you may apply for non-tobacco rates after quitting for as few as 12 months or up to 36 months with other companies. And, yes, companies underwrite differently depending upon the type of tobacco; cigarette, cigar, pipe or chewing tobacco. Some companies will underwrite cigar, pipe and chewing tobacco users as non-smokers, which could dramatically reduce your premium cost.

11. What if I smoke an occasional cigar?
Some companies underwrite pipe, cigar, and chewing tobacco users as non-smoker risks. We knowing "the rules" of the the companies and will recommend the best company based on your particular situation so you obtain the best insurance value.

12. How much coverage should I have on my spouse?
Our life insurance needs analysis calculator evaluates the age, income and future needs of all members of the family. Straight-forward financial planning recommendations are offered based on your debt level, income, ages, etc. It is anonymous and confidential. This is an extremely useful and powerful financial planning assistant.

13. What are the key points to consider when evaluating an insurance policy?
Before replacing your present policy, look at the following criteria…
- Guarantee periods – how long is the premium guaranteed to remain level?
- Conversion Option – what is the maximum age you retain a conversion option?
- Financial ratings – what are the ratings of the alternative insurance companies?
- Price – is the price guaranteed for the entire level premium period?

14. What are the key considerations when replacing an insurance policy?
New 2 Year Contestable Period
Each new life insurance policy has a contestability period that extends for two years after issuance of your policy. This incontestable clause gives the insurance company the right to investigate and deny the claim if there was a material misstatement of fact, suicide was committed by the insured or other stated contractual exclusion. After the incontestable period expires, usually two full years, then most life insurance policies pay on all perils.
Underwriting Denial
Never allow an in-force insurance policy to lapse without implementation of suitable replacement coverage. The mere fact of underwriting approval or an underwriting offer do not constitute nor bind coverage. We always recommend implementation prior to surrender or termination of any existing life insurance coverage in order to assure suitable, affordable coverage is maintained for your peace of mind.

15. Can the policy ever be reduced or cancelled because of health reasons?
No.
When the underwriting is completed and the policy is in effect, the insurance company has determined the underwriting classification. Assuming complete and accurate disclosure, the insurance company can never cancel your policy or reduce your benefits for health reasons. Of course, you must continue to pay the required premium to maintain the insurance protection. Therefore, we recommend that you elect a level premium guarantee period which most closely matches your family’s need.

16. What is involved in the application process?
The application process is completed over the phone. Our professional agents will interview you and complete the insurance application form. Then, the completed application is sent to you for review and signature. We will provide a pre-addressed, postage-paid return envelope to expedite the processing. Upon receipt of your signed application, we order the insurance physical and any other underwriting requirements necessary. The paramedical examiner will contact you directly to schedule a convenient time to meet with you. Once the requirements are completed; application and insurance physical, the underwriting process generally takes 4 weeks. During this time, the company may obtain your medical history from your doctor and review other information they deem necessary. The process concludes with the insurance company indicating their underwriting offer... example... Preferred Non-Tobacco Risk. This underwriring offer establishes the premium rates of your policy.

17. Is there any cost for me to apply?
No. The underwriting expenses are paid by the insurance company. There is no obligation and no contractual commitment. The only commitment is the time it takes the complete the application and the insurance exam.

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18. Is it possible to start the coverage immediately?
YES. If you qualify, you can begin the insurance protection at the time of application by submitting a check for the first modal premium (minimum 2 months) with the signed application.
Insurance companies offer conditional insurance protection during the underwriting period. The coverage limits and eligibility conditions are clearly expressed in the application. Generally, submitting a check for the first premium due, completing the application and taking the insurance exam will qualify you for the conditional insurance coverage.

Again, I want to make it clear that this coverage is conditional upon the strict adherence to the terms expressed in the temporary insurance agreement of the application AND underwriting approval. The insurance company has the right to terminate the conditional insurance, as set out in the application.
We recommend that you keep your present policy active until the new policy is in full force and effect, which means the underwriting is completed and the policy is in hand.

19. Why should I do business with Lifedepartment.com?
Thanks for the consideration. First, we have highly experienced professional staff. Second, our agency is a family owned second generation business. Third, technology has increased the speed and reduced the barriers to communication, which we believe is utmost importance to an insurance relationship. Forth, our portfolio of companies/products provides our clients with the consistent access to high quality and competitive priced product. Fifth, our family oriented service style will provide you the peace of mind you deserve, knowing your insurance needs are our primary objective. Finally, insurance is our business, we know it very well, we offer underwriting assistance and will deliver recognizable results.

20. I have seen the same products at other websites, will I find a lower premium on the same product at another service, agent, or broker?
No.
The insurance industry is required to contractually file it’s rates with each state insurance department. Therefore, the price for a particular company’s product will be the same through every agent in the state. Carefully review the alternative quotes to determine if you are evaluating the same quote criteria… health classification, smoking status, etc. Often times a lower price offered by the same company is the result of a different health classification assumption. Our objective is to help you achieve the best insurance value for your need.

We recommend reviewing alternative health classifications in order to review potential outcomes. Applying for the lowest possible price may achieve unexpected results. The better approach is to apply for the best pricing based on your expected underwriting outcome. Our staff will make recommendations based on the application interview. They will help pre-qualify you based on your situation. Then, with the benefit of our expertise, you can be assured you are applying to the carrier that is best suited to your health and financial situation.

Others may try to entice you with a low-ball price to get your attention. However, our philosophy is to empower you with the facts, so you can make informed decisions about your future. Quoting low rates is easy. Delivering results takes work. Our underwriting expertise helps seeks solutions in difficult situations. We look forward to handling your insurance matters.

21. What advantage do you offer over my local agent?
Our agency was formed in 1925. It has lasted through the great depression, world war II, the Korean War, The Vietnam War, The Gulf War and all of the recessions and recoveries since then. Our family has owned and operated the business since 1975. Rest assured the agency will continue to deliver excellent, professional and courteous service into the future. In addition, our commitment to the business assures we will maintain the technical expertise to deliver excellent advice on both planning and product matters. Insurance and financial planning are the recognition and transfer of risk, they are also our business. We believe we know the business as well as anyone and our rates and systems speak for themselves.
Sometimes the elimination of direct sales contact improves the efficiency and clarifies the decision making process. Why? Insurance planning is a personal and emotional process. Planning for the affairs after one’s death can be stressful. And, there is a reputation of insurance agents as purveyors of high pressure sales tactics. For this reason, we believe our open lines of communication; internet web site, email, 800 phone number and internet service account provide you and your heirs with the reassurance and commitment necessary for long term relationships.

22. Do I need to take a medical exam?
In almost all cases an exam is required. All of the exam costs are paid by the insurance company. And, the examiners will arrange to complete the exam at a time and place convenient for you... usually right in your home. The exams are completed by either a licensed paramedic, a nurse or a medical doctor. They usually involve a blood test, urine specimen, blood pressure reading, medical history, height and weight measurement. In addition, for larger death benefit policies, an EKG or other advanced diagnostic test may be requested . The paramedical insurance exam usually takes about 20-30 minutes.

23. What is the procedure after my insurance physical exam is completed?
The underwriting process generally takes 4 – 8 weeks to complete. However, the process usually entails the expediting of your medical records as well as the review of your application and insurance exam results. The sum of your pertinent information is gathered and reviewed by the underwriting team and the medical director of the insurance company. After review, they make an underwriting decision. The underwriting decision/offer correlates to the premium rate classification you qualify for… which may be lower, higher or the same rates as quoted. And, the insurance company always reserves the right to decline coverage at their discretion.
When the offer is received from the insurance company, we provide you with the underwriting result, and the premium rates based on your offer. If agreeable, the policy is ordered and delivered to you. Once delivered and accepted, the policy goes into full force and effect. Again, the process is generally completed within 4 – 8 weeks from the time it begins.

24. How do we get paid?
We earn a commission for assisting you with the insurance purchase. We are paid by the insurance company directly.

25. Is there a money-back guarantee?
Yes.
At any time during the application process, you can obtain a full refund of any money submitted with the application. The 100% satisfaction guarantee is available for 10 days after the policy is accepted by you.

26. Please explain some of the differences between "standard", "preferred", and "preferred-plus" rate classifications?
These health classifications will directly affect your insurance rates. Your health classification is a reflection of your insurance risk. Through actuarial science, the underwriter is attempting to assess your future risk of death. And, these risk classifications are their assessment of your situation at the moment.

In general, super preferred means extremely healthy. Generally these folks are not taking any medications, have excellent family longevity and have no adverse medical history. Usually, there is a minimum of three year tobacco free requirement. Blood pressure and cholesterol must be "normal" readings as well.

In general, preferred means very healthy. Generally these folks are not taking any medications, perhaps cholesterol or blood pressure medications, which result in a long period of demonstrated control. They do have excellent family longevity and no serious adverse medical history. Usually, there is a minimum of one year tobacco free requirement. Blood pressure and cholesterol must be within normal readings as well.

In general, standard means healthy. Generally these folks are taking some medications, usually cholesterol and/or blood pressure medications. Their family history may have a relative that died prior to age 65. They may also be recovering from a fairly serious adverse medical condition that was last treated a few years ago. Blood pressure and/or cholesterol readings may be slightly elevated, but not too high. In addition, other factors such as a poor driving record may negatively effect your risk classification.

These generalizations of the risk classifications are very basic and simplistic. Each insurance company has exclusive right to determine your insurance pricing at their own discretion. We strive to use our experience in selecting the best insurance company and product solution based on your specific situation.

There are two sides to underwriting you for insurance; what happens prior to completing the application and completing the application. The advice you receive prior to completing the application will determine which company’s application to complete for the best rate results. We appreciate the opportunity to provide you that assistance.

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Toll-free: (888) 455-1043
Illinois: (312) 265-6002
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