Frequently Asked Questions

Q. What is the first question I should ask an agent that I speak to?
A. The first question you should ask is whether or not the agent you're speaking with is licensed in life insurance. All OfficialQuote agents are licensed.
Q. What is the advantage of working with OfficialQuote over other various online life insurance sites?
A. Since 2004, OfficialQuote has been providing fast, free and unbiased life insurance quotes and services, which help consumers save thousands of dollars on their life insurance. We pride ourselves in assessing each customer's individual needs and provide recommendations based upon those needs. Many sites provide instant life insurance quotes, without ever knowing who their customer is or what their particular requirements are.
Q. Do you provide more than just life insurance quotes?
A. Yes. We are a full-service life insurance agency that helps you throughout the process, handling every step from initial contact to policy delivery.
Q. Which life insurance companies does OfficialQuote represent?
A. OfficialQuote is an independent life insurance agency, thus we provide access to an array of life insurance companies.
Q. What variables affect which life insurance companies OfficialQuote represents?
A. OfficialQuote sees that it works with some of the strongest life insurance companies in the country and takes into consideration the following factors when selecting those companies:
  • Financial stability
  • A.M. Best Rating
  • Specialty (Many life insurance companies specialize in certain areas of insurability, such as diabetes, smokers, heart disease and various others)
  • Claims paying ability
  • Pricing
We are continuously monitoring each life insurance company to ensure you receive the outstanding products and services.
Q. Is my information kept confidential?
A. Yes. Only select management has access to your personal information at OfficialQuote. Your name, address, or personal information will never be sold for marketing purposes.
Q. How is OfficialQuote compensated?
A. Once your life insurance policy is placed in force, OfficialQuote receives a commission from the life insurance company. As part of our company policy, we make certain that you receive unbiased advice by always recommending the least expensive option for your particular situation.
Q. Should I buy term life insurance or permanent life insurance?
A. The type of life insurance you need depends on your particular situation. Term life insurance is appropriate and more cost effective for temporary needs, which may be a period of one to thirty years. On the other hand, if your need is more long term, permanent life insurance is better. In some cases, a mix of both term life and permanent life insurance may be suitable.
Q. What is the difference between whole life insurance and universal life insurance?
A. Whole life insurance and universal life insurance are each permanent life insurance; however, universal life has flexible premiums and an adjustable death benefit. Whole life insurance premiums are fixed and the death benefit is not adjustable. Another difference between these two types of insurance is the cash value of a universal life insurance policy is interest sensitive. If interest rates go up, so will the cash values. A whole life insurance policy's cash value is not very interest sensitive.
Q. How much life insurance do I need?
A. Since individual needs vary, we recommend that you speak to one of our personal representatives to determine what's right for you. In its simplest form, life insurance replaces lost income if something were to happen to you. With this in mind, the benefit from your policy should be enough to cover immediate expenses as well as to provide a steady income for your beneficiaries. Most financial planners suggest coverage as a multiple of your annual income, five to 10 times. For example, if you make $50,000, you might consider coverage between $250,000 and $500,000. If you're younger and just starting a family, you might need as much as 12 times your income to allow for salary increases.
Q. What period of term coverage should I consider?
A. The term coverage period you should consider depends on several things, but the most basic is how long you anticipate your beneficiaries will be dependent upon your income. If your primary beneficiary is your spouse, you should consider being covered until retirement. If it's a child or several children, you'll probably want to consider protecting them until they're at a minimum age of 18 or finish college, thus able to be self-sufficient. If your goal is to cover a mortgage, choose a policy that correlates with the length of the loan.
Q. Does my spouse also need life insurance coverage?
A. It depends. Are you and your spouse both earning an income to help support your lifestyle? If so, then you would most likely need some level of coverage for each of you. If only one of you is earning an income, there are still strong arguments for acquiring life insurance for your partner. Case in point, losing a stay-at-home spouse could lead to dramatically increased child-care costs, time away from work for the surviving spouse, final expenses, even the settling of outstanding debts. These are just some of the financial aspects of losing a stay-at-home spouse.
Q. Should my kids have life insurance?
A. Life Insurance for children is something that many parents consider and should be evaluated on an individual basis. Many companies do offer separate policies for children, but also have inexpensive "child riders" that can usually be added, for one flat fee, to the parent's policy.
Q. How is an applicant classified?
A. The life insurance company uses factors such as personal medical history, family medical history, financial situation and sometimes avocation and occupation to place an applicant in a specific rate class.
Q. What if I receive a higher rate than I applied for on my life insurance policy?
A. If you apply for life insurance through OfficialQuote and you receive a higher rate on your policy or you are declined, we will automatically shop your life insurance coverage with other life insurance companies. First, we will identify (on a "no names" basis) other life insurance companies that may be more liberal given the reason you received a higher rate or were declined. Then (again, without disclosing your name) we will send each of these life insurance companies the information they need to make an estimate of the rate for which you would most likely qualify based on their particular underwriting criteria. Once we have received the alternative rates, an OfficialQuote Customer Service Representative will contact you to explain your options. You will have the opportunity to stay with the original life insurance company you applied with or submit an application to the alternative company that may offer a better rate. One of the benefits of this unique service is that you do not have to complete another medical exam or application for us to shop you with other companies! We simply use your first application and medical exam results.
Q. What is a "guaranteed" term life insurance policy?
A. "Guaranteed" term life insurance simply means that for the duration of your term, for example 20 years, your annual premium payments are guaranteed to stay level. The coverage, or death benefit, will also remain level and the life insurance company cannot cancel your policy or raise your premium for the length of that term, as long as you pay the premium. The same is true for all guaranteed term life insurance policies. Some life insurance companies offer term policies that are partially guaranteed. At OfficialQuote, we recommend that you consider only policies that are fully guaranteed, this will thus lock in your rates for the length of your policy term.
Q. Will my term policy have a conversion option?
A. All of the policies we sell at OfficialQuote are convertible to permanent life insurance, also called Universal life insurance or Whole life insurance. Each company and each type of term product has various options for conversion during the term of the policy. This conversion takes place without you having to take another medical exam or reapply, in fact, no matter how your health may have changed this option must be extended. This option provides comfort and flexibility should your health or insurance needs change after the purchase of your policy.
Q. Is my policy renewable?
A. Term life insurance policies are renewable on a year-to-year basis once the initial guarantee period expires. Most importantly, the coverage is renewable regardless of your health and you do not have to reapply, just continue making your premium payments and the policy will continue to stay in force.
Q. What are my payment options?
A. You can choose to pay your premium monthly, quarterly, semi-annually or annually. If you choose to pay monthly the life insurance company will establish an electronic draft to your checking account and deduct the monthly premium on the date that you specify. If you choose any other options the life insurance company will bill you directly.
Q. Am I covered while I wait for my policy?
A. If you would like to be covered from the initial point of application you do have this option in some states. When you submit your application, be sure to ask for a conditional receipt. You will be asked to provide an initial premium payment, but depending on the state in which you live, you may be eligible for temporary conditional insurance while your policy is being approved. Your OfficialQuote personal representative can explain further.
Q. Can I still get life insurance if I am not in perfect health?
A. In most cases, you can still get life insurance. OfficialQuote represents many life insurance companies that specialize in insuring people with certain higher risk health issues. Since 2004, we have worked with many people who have various health history issues, including cancer survivors and those with diabetes or heart disease and have been able to get the coverage they need at the best price available.
Q. Do I have to take a medical exam?
A. Yes. A medical exam consists of a blood and urine sample, as well as verification of medical history. The exam is free and takes place at your home or office when it's convenient for you. This exam normally takes less than 30 minutes.
Q. I'm interested in applying for a life insurance policy, what do I do next?
A. At OfficialQuote, we want the application process to be as simple as possible. Here is how it works:
  • Request an application for the life insurance company you have chosen.
  • Complete and return the application.
  • A representative for the life insurance company you've selected will contact you to schedule your free medical exam
  • Complete the medical exam at your home, office or other location of desire, at your convenience and at no cost to you. The exam will include a blood and urine sample and should take no more than 20-25 minutes. The results will then be sent to the life insurance company for underwriting, the processes of deciding what rate you will receive for the insurance. Of course, all information is confidential and you will have access to the results if you would like.
  • Upon approval of your application, your personal representative will contact you to discuss any further questions and schedule a time to deliver the policy. Once the policy has been delivered and the first premium payment is received, your policy will be officially in force.
Q. How long does it take for my application to be approved?
A. In most cases, it should take between 4 - 6 weeks after your application has been submitted.
Q. What should I do with my current life insurance policy?
A. If you are replacing a life insurance policy, you should not cancel your old coverage until you have received and reviewed your new policy. After you are completely satisfied with the outcome of your new policy then you may cancel your old policy.
Q. When does my life insurance coverage begin?
A. Your life insurance coverage begins once the policy has been issued and all of the delivery requirements have been returned to the life insurance company. Delivery requirements may include a premium payment, statement of health, delivery acknowledgement form or amendment of application. Temporary coverage during the underwriting process may also be available with some life insurance companies. In cases where temporary coverage (also called conditional coverage) is available, coverage begins once the completed application has been returned to the life insurance company with a premium payment and you have completed the medical exam. The coverage is contingent upon you qualifying at the rate you applied for and a few other factors. Read the conditional receipt of your life insurance application for additional information.
Q. What is the tax treatment of life insurance death benefit proceeds?
A. Life insurance death benefit proceeds are generally not subject to income taxation provided they are paid in a lump sum; however, there are a few exceptions to this rule. If a settlement option is used other than the lump sum option, then the interest earned on the principal death benefit is taxable. Although life insurance proceeds are generally exempt from income taxation, they are subject to estate and inheritance taxes.