What's a Rate When You Buy Term Life Insurance?
Term life insurance is an odd product in that you don't pay for it when you buy it; you gradually pay for it during the term of your coverage. Term life insurance has a level premium, which means that the price you pay for one payment period is the same as the price you paid for the previous payment period. Neither advancing age nor deteriorating health can affect your rates when you buy term life insurance.
The rate you pay is calculated based on the amount of coverage (size of death benefit) in your policy, the term of your policy, and the mortality risk of the person who is being insured (the likelihood of his/her imminent death).
The insured's mortality risk is based primarily on his/her health and his/her family history, though the insurer may consider additional information, such as a driving record. Before you can buy term life insurance, the life insurance company will require an examination by a medical professional. When you buy term life insurance through Barter, your exam is free. We send a traveling nurse to your home or office, at your convenience. 30 minutes and a few ounces of bodily fluids later, and you're done.
