Does An Insurance Provider Have To Give Me Term Life Insurance?

You might think a life insurance company would have to provide life insurance to an applicant even if it meant charging a bit more if the applicant's health put him in a higher risk category. Such is not the case. Insurance companies are not required by law to accept someone for life insurance. They accept someone because it makes business sense for them and fits the statistical calculations they use in their business model.

Underwriting is the process the insurance company uses to research and evaluate the individual applying for coverage. Each insurance company has its own set of guidelines to help determine whether or not the company should accept the risk. The company providing coverage must take into account the likely number of claims to have to pay out on, the cost to administer the policy, and ensure that the company makes enough profit to provide long-term stability so as to stay in the business of selling life insurance.

The majority of individuals, even most with less than optimum health, qualify for coverage. It is recommended to get lots of quotes for various terms and amounts of coverage that you might be interested in. Get term life quotes from numerous different companies because the rules can vary company to company which means the premium amount can be different for each company. You can then not only compare term life rates between companies but you can consider the difference in cost for different terms and coverage amounts. That is how you will make the best decision as to how much coverage you will get, how long you want the policy term to be and which of the dozens of providers you want to purchase from.

So while the insurance provider is not required by law to accept all applicants for a term life insurance policy, most people do qualify and are able to get coverage.

For a term life quote right now, visit LifeInsureMe.com. The company has over 100 insurance providers in its database that it uses to find the lowest possible rate for you. The life insurance quote process is easy and a quote takes just seconds.