Michael Higgins Insurance, LLC. offers Arizona term life insurance through the North American Company for Life and Health Insurance. North American has an A.M. Best rating of A+ Superior, an S & P Global rating of A+, and an A+ rating from Fitch. Personal information, such as your name, address, or social security number are not required to receive an instant quote. Other information such as age, sex, tobacco use, and general health questions are necessary for the most accurate quote. There are 10, 15-, 20-, 25-, and 30-year level term options. Premiums remain level throughout the policy period, and there is a standard two-year contestability and suicide clause.
Read more about the financial strength of North American Company here, brochure.
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Who Needs Term Life Insurance?
Many individuals need term life insurance of course, and an excellent example of someone that should have such coverage, though rarely does, is the stay-at-home spouse. The cost of childcare, food preparation, laundry and home cleaning services, lawn care, pet care, etc., can reach well over $100,000 a year if one had to suddenly obtain such services on the open market.
Depending on the age of your dependents, a 10-, 15-, or 20-year level term life insurance policy will likely be adequate. Pricing for such coverage, assuming the individual does not use tobacco and is in good health, can be very inexpensive. A 45-year-old male can buy a $500,000 20-year level term life policy for around $50 dollars a month. Premium rates for females are even less expensive in most cases. Of course, the health of the applicant plays a large role in determining the premium rate, along with other factors such as tobacco use, type of work, etc.
How Much Term Life Insurance Do I Need?
As a rule, ten times annual income should suffice.
All Tobacco Is Not Equal
If a tobacco user, please note that premium rates may vary widely between life insurance companies based upon the type of tobacco product used, and the frequency in which it is used. A 48-year-old male that smokes a cigar on occasion will pay much less than if he smoked cigars and cigarettes. In this example, he applies for a $3 million-dollar 10-year level term life insurance policy. He smokes a cigar or two each weekend while out with friends. His physical condition is between average and good. This gentleman can expect to pay around $5000.00 a year for a $3 million-dollar 10-year term life policy. Had he not smoked cigars, the premium would likely be under $3000.00 per year. If he enjoyed a cigarette as well as a cigar, he could. expect to pay $11,000-$18,000 a year for the same policy. Just a few cigarettes throughout the year puts him in the smoker category, a category in which premium rates are, at a minimum, twice that of standard rates.
Whether a $3 million dollar term life insurance policy or a $300,000 policy, smoking cigarettes is a very expensive proposition when it comes to life insurance. Premiums will be higher than standard rates for those that use other forms of tobacco such as pipe, cigar, snuff, and leaf chewing tobacco, but typically not as high as for those that smoke cigarettes. Fortunately, most health insurance companies, and many employers, offer smoking cessation programs to help kick the habit, possibly saving the term life insurance applicant thousands of dollars in premium once their smoking days are behind them.