If you inquire about life insurance on the Dave Ramsey radio show, you will be directed to Zander Insurance for quotes. As we explain in another article, there are some pros and cons of dealing with Zander Insurance. You can see an example (using actual quotes) of how someone could save over $16,000 by not using Zander Insurance. The savings climb to over $75,000 if the premium savings is invested in mutual funds. The number one drawback to working with agencies like Zander Insurance is their limited number of insurance companies.
This article will look at the carriers offered by Zander Insurance. You will learn how this might affect your ability to select the most appropriate type of coverage and find the lowest rates possible.
Zander Insurance Term Life Companies – From A to Z
The following life insurance companies are offered by Zander Insurance:
- AIG (American General)
- Assurity Life
- Banner Life
- Lincoln National
- North American
- Pacific Life
- Protective Life
- Prudential
- Savings Bank Life Insurance Co.
- Transamerica
- United of Omaha
We ran numerous quotes using many variables on Zander’s website. The eleven companies shown above are the only carriers we found. There could more, but they might be available only in a few states. Having the choice of eleven carriers isn’t bad. Furthermore, all of Zanders’ carriers are rated A- or better by AM Best.
However, eleven companies from which to choose is on the low side. To give you some perspective, our three quote engines allow comparisons with over 90 life insurance companies. Do we work regularly with that many companies? Absolutely not! We think that having 30 or 40 carriers with competitive term life insurance products is plenty. Occasionally, we will work with a non-traditional company due to a unique situation. It’s nice to have options and know we have scoured the market to obtain the very best offer for our clients.
When Things Don’t Go As Planned
Our quote engines include the 11 companies available through Zander. Many times, one of those companies is the lowest cost and the best option. The problem is when things don’t go as intended. Let’s say you think you’ll qualify for the Preferred non-tobacco rate with one of several companies. However, the underwriter says you only qualify for a “table C” rating (much higher premium) due to elevated liver enzymes or something else unexpected. Well, now you need a strategy going forward.
Sometimes, like the example above, a client applies for coverage with one of our carriers and receives an unfavorable underwriting decision. We have the ability to shop his or her case – using the lab results and all pertinent health information – with dozens of companies. This takes some time and effort. When you work with an agency that has limited options, it can lead to a much higher premium. Would you rather have a handful of carriesr competing for your business or over 30?
Recently, we worked with a couple of people who would only qualify for the Standard rate class due to height/weight. We have one carrier that has a special program that will allow overweight applicants (within certain limits) qualify for Standard Plus. This company is not offered by Zander. The premium savings was not huge. For once client, the savings was just $9 per month. However, this results in a savings of $2,160 over the course of 20 years.
Different Types of Term Insurance
When shopping for term life insurance at Zander, you will find mostly just one type of term insurance – medically underwritten term insurance for 10, 15, 20, or 30 year term periods. However, you might want (or need) a different type of term policy. There are two other types of policies we will cover here.
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Non-med term insurance
This type of coverage is generally more expensive then medically underwritten term insurance. Non-medical term insurance is generally approved within a few days of applying. Furthermore, no lab work or paramed exam is required. For this reason, there is only one standard rate for non-smokers and one rate for smokers.
Why non-med term? Some people are concerned that they could have a medical issue and don’t want to risk a declination. This would become a permanent record in the Medical Information Bureau (MIB) database. You might find out you are a standard health risk and figure you don’t mind paying a little more for a quick and easy application process that involves no needles or exams. There are other reasons why a non-med term policy could be a good choice. We typically don’t recommend this type of plan for most people. However, there are situations when it is advisable.
Zander offers one non-med product (that we can see) and it’s through Assurity Life. Assurity is a decent company – A- rated by AM Best. However, there are several other non-med carriers that have lower rates, depending on your situation.
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Term Insurance Beyond 30 Years
You might like the idea of having some term insurance beyond the standard 30 years, which is the longest duration offered by most carriers. There is one carrier that offers a 35-year term. There are several carriers that offer term to age 100 or “term for life”. Zander Insurance doesn’t offer this type of coverage – 30 years in the maximum.
Why term beyond 30 years? Again, most of our client’s want standard term insurance. However, you might like the idea of having some life insurance extend beyond 30 years. For example, a 35 year-old might need a total of $1 million in life insurance. This person could ladder their policies, so one policy for $750,000 expires in 30 years and another policy for $250,000 expires at age 100 or 110. Term for life is another name for guaranteed universal life. This type of product is not designed to build cash-value. For more information, you can read more about GUL here.
The GUL Product Design
Even Dave Ramsey tells readers to consider the guaranteed universal life product design. Ramsey refers to it as “universal/term”. We have never heard Ramsey recommend term beyond 30 years, so we are not saying he endorses this. Frequently, we receive calls from people in their 50s, 60s, and 70s who want additional coverage. Oftentimes, they purchased a term policy thinking that the insurance would no longer be needed or desired past a certain age. As we all know, unexpected financial setbacks or life events happen.
If you run a quote for 20-year term, you will often see Protective Life towards the top of the results. Their product is called Custom Choice No Lapse UL – 20 Year. Protective Life, and many other carriers, offer guaranteed universal life insurance to age 90 through age 120. You can “dial-in” the guarantee age you want. There is no cash value component, so the premium and death benefit are fully guaranteed. On our quote engine on this page, select “Lifetime” to see several leading GUL plans. Additionally, we use two other quote engines that compare many other GUL carriers. So, be sure to ask for a customized quote.
Zander Insurance Term Life Companies – Conclusion
We think Zander Insurance is a reputable, well-run agency. We’re sure they provide top-notch customer service. However, we think you deserve a choice of many more than 11 carriers. As we have demonstrated, you can save a lot of money by having a much wider selection of carriers. Additionally, it’s nice to know about other types of coverage such as non-med term or guaranteed universal life. You might decide it’s not for you, but knowing all your options and making an informed decision is important.
We will be glad to discuss your situation and prepare customized quotes that compare over 90 companies. Please call us for advice or quotes and we’ll be happy to help.
