In my years of experience I have noticed that, when most people buy life insurance, the premiums are higher than what they expected when they filled out the application. A lot of people are misled about the cost of Term Life Insurance before they submit an application and go through the underwriting.Most people see the "super preferred" class, which shows the lowest possible price, and fill out the application thinking that is going to be their premium.
Sometimes insurance agents show this rate to their clients and mislead them. It's when the policy comes back at a higher price that the sales job begins.Life insurance has many classes. The premium can depend on the class the carrier considers appropriate for your situation. The "super preferred" class is generally for people that are extremely healthy. It's not an easy class to obtain from any carrier. If you are shopping for life insurance, find out what the criteria are to qualifying for this rate. This way you can get a good idea of what class you may fall into.
Another trap I see with Term Life Insurance is the convertibility aspect. Some carriers offer an extremely low-cost contract that seems cheaper than anyone else. Most of the time, these policies are not convertible. Conversion means that, once you are approved for your term policy, you can convert or change the policy into a permanent plan that could last for the rest of your life. The conversion privilege is granted, regardless of your health, after you have obtained the insurance. Usually, the face amount of the policy is what is available for conversion. There are age restrictions that vary from carrier to carrier, and products can vary as well.
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