Ameritas Term Life Insurance Review: Policy Options, Coverage, and Buying Process

Ameritas offers competitive term life insurance featuring level premiums, flexible term lengths ranging from 10 to 30 years, and conversion privileges into permanent coverage. Evaluating policy features, rider availability, and the streamlined underwriting process helps applicants choose appropriate coverage amounts, select suitable add-on features, and navigate the application efficiently.

Overview of Ameritas Life Insurance Corp.

Founded in 1887 and headquartered in Lincoln, Nebraska, Ameritas Life Insurance Corp. operates as a mutual-based financial service entity under Ameritas Mutual Holding Company. Unlike publicly traded insurers driven by quarterly shareholder expectations, mutual companies prioritize long-term policyholder interests. Ameritas maintains solid financial strength ratings, demonstrating high capital reserves and financial capacity to fulfill policyholder claims over multi-decade terms.

Independent rating agencies consistently evaluate Ameritas with high marks for financial stability:

• A.M. Best: A (Excellent) financial strength rating, indicating a strong capacity to meet ongoing policy and contract obligations.
• Standard & Poor's (S&P): A+ (Strong) rating for financial security.

Ameritas provides individual life insurance, dental and vision coverage, disability income protection, and retirement plans across all U.S. states, working through independent financial advisors, brokers, and direct digital enrollment platforms.

Ameritas Term Life Insurance Policy Options

Term life insurance provides temporary coverage for a specified duration, paying a tax-free death benefit to designated beneficiaries if the insured passes away during the active policy period. Ameritas structures its primary term products—such as the Ameritas Value Plus Term series—to balance cost-efficiency with long-term adaptability.

Level Premium Durations

Ameritas policies feature fixed premiums that remain unchanged throughout the initial term length. Insured individuals select from standard term increments:

• 10-Year Term: Ideal for short-term debt coverage, transitional business liability, or bridging years until retirement.
• 15-Year Term: Commonly selected for mid-range financial goals, such as backing a 15-year residential mortgage.
• 20-Year Term: A popular option for young families, providing coverage throughout children's upbringing through high school or college.
• 30-Year Term: Maximum duration, offering level pricing through long-term obligations such as 30-year home loans or financial support during career growth.

Coverage Amounts (Face Values)

Ameritas accommodates diverse coverage requirements:

• Simplified Issue Band ($50,000 to $500,000): Lower coverage caps available with accelerated underwriting, frequently eliminating the requirement for a physical medical exam for qualifying applicants.
• Fully Underwritten Band ($500,001 to $10,000,000+): Higher death benefits suited for substantial income replacement, debt protection, estate preservation, or key-person business insurance.

Policy Riders and Customization Features

Optional policy enhancements (riders) allow policyholders to adapt standard term insurance to specific personal or financial circumstances. Ameritas offers several core riders, some included automatically and others available for an additional premium.

• Ameritas Policy Riders:
  • Accelerated Death Benefit (Included free)
  • Waiver of Premium (Add-on cost)
  • Children's Term Rider (Add-on cost)
  • Accidental Death Rider (Add-on cost)

1. Accelerated Death Benefit Rider

Included in most policies at no initial upfront cost, the Accelerated Death Benefit rider allows policyholders to access a portion of the policy's face value prior to death if diagnosed with a qualifying terminal illness (typically a certified life expectancy of 12 months or less).

• Purpose: Helps pay for medical care, end-of-life expenses, or non-medical personal obligations.
• Impact: Exercising this benefit reduces the final death benefit payable to beneficiaries by the amount accelerated, plus an administrative adjustment fee.

2. Waiver of Premium Rider

If the insured suffers a total disability (as defined in the contract) that persists through a mandatory elimination period (usually six consecutive months), Ameritas waives ongoing term policy premiums while keeping the death benefit fully active.

• Eligibility: Generally available to applicants aged 18 to 55 at policy issue.
• Duration: Premium waivers remain active until the disability ends or the original policy term expires.

3. Children’s Term Insurance Rider

Provides low-cost, supplemental term life coverage for dependent children (typically from 15 days of age up to age 19 or 23).

• Single Premium Structure: A single rider fee covers all eligible children in the household.
• Conversion Privilege: Covered children can convert their term coverage into an individual permanent life insurance policy without evidence of insurability upon reaching the maximum age limit (usually age 25).

4. Accidental Death Benefit Rider

Pays an additional death benefit over and above the primary face value if the policyholder's death results directly from a qualifying accident.

• Restrictions: Subject to strict exclusions regarding medical conditions, hazardous activities, or illegal acts.

The Ameritas Term Life Insurance Buying Process

Purchasing term life insurance from Ameritas follows a structured progression designed to assess health risk, establish financial justification, and issue an accurate policy rate.

1. Step 1: Need Assessment & Quote
2. Step 2: Digital or Agent Application
3. Step 3: Underwriting & Health Evaluation
   • Accelerated: No Paramed Exam
   • Fully Underwritten: Paramed Exam + Lab Tests
4. Step 4: Policy Approval & Delivery
5. Step 5: Premium Payment & Activation

Step 1: Initial Needs Assessment and Quote

Before applying, calculate the total coverage needed by evaluating immediate financial obligations, income replacement demands, outstanding debts, and long-term education funds. Quotes can be obtained via independent brokers or licensed online agencies representing Ameritas.

Step 2: Formal Application Submission

The application requires comprehensive background information:

• Personal Information: Legal name, address, Social Security Number, date of birth, citizenship, and driver's license status.
• Medical History: Past diagnoses, surgeries, prescription drugs, hospitalization history, and family medical background.
• Lifestyle & Occupation: Tobacco use, alcohol consumption, high-risk hobbies (e.g., aviation, scuba diving), and occupational hazards.
• Financial Details: Gross annual income, net worth, and existing life insurance policies in force.

Step 3: Underwriting and Risk Evaluation

Ameritas reviews applications using one of two primary pathways depending on coverage level and eligibility:

Accelerated (Simplified) Underwriting

• Eligibility: Qualified applicants within specific age parameters (typically ages 18 to 60) requesting coverage under established limits (e.g., up to $500,000 or $1,000,000 based on underwriting updates).
• Process: Automated data verification using prescription history databases, Motor Vehicle Records (MVR), and Medical Information Bureau (MIB) reports.
• Outcome: Fast approval within days without requiring a physical medical examination, provided no significant medical red flags surface.

Full Medical Underwriting

• Eligibility: Higher face amounts, older applicants, or applicants with complex medical conditions.
• Process: Includes a paramedical exam scheduled at the applicant's home or office. A certified medical technician records height, weight, blood pressure, pulse, and collects blood and urine samples.
• Medical Records: The underwriter may request Attending Physician Statements (APS) from primary healthcare providers, extending the review timeline to 3 to 6 weeks.

Step 4: Policy Offer and Delivery

Upon completion of risk assessment, Ameritas assigns a final rate classification:

• Preferred Plus / Super Preferred: Exceptional health profile, excellent family history, optimal blood work, non-tobacco user.
• Preferred: Standard health markers above average, minor family health history, non-tobacco user.
• Standard Plus / Standard: Average health metrics, minor medical managed conditions, or elevated body mass index (BMI).
• Substandard (Table Ratings): Higher health risks, graded via table ratings (Table A through Table H), resulting in extra premium surcharges.

Step 5: Acceptance and Policy Activation

The applicant reviews the finalized policy contract, signs the delivery receipt, and remits the first initial premium payment. The policy takes effect on the official coverage date established in the agreement.

Term-to-Permanent Conversion Privileges

A valuable contractual feature of Ameritas term life policies is the Conversion Option. This feature grants policyholders the right to exchange their term life coverage for a permanent life insurance policy (such as whole life or universal life) issued by Ameritas, without submitting new medical evidence.

Key Rules and Conversion Constraints

1. Conversion Window: Term policies can usually be converted during the initial level term period, up to a maximum age (frequently age 65 or 70, whichever comes first).
2. No Health Re-qualification: Regardless of any illnesses or injuries developed after the original policy purchase, Ameritas guarantees conversion at the underwriting classification granted during initial approval.
3. Partial Conversions: Policyholders may elect to convert only a portion of their total face value. For example, a policyholder with a $1,000,000 term policy can convert $250,000 into universal life and maintain $750,000 as term coverage, provided minimum policy thresholds are met.
4. Premium Adjustments: Converted policies require higher permanent life insurance rates based on the insured's attained age at the time of conversion.

Cost Factors and Rate Drivers

Life insurance premiums charged by Ameritas depend on several primary risk factors. Understanding these variables helps applicants anticipate actual policy costs:

• Age at Issue: Rates increase steadily with age due to higher statistical mortality risks.
• Gender: Females generally pay lower rates than males of the same age, reflecting longer average life expectancy tables.
• Health and Medical History: Blood pressure, cholesterol levels, glucose levels, body mass index, and personal histories of cardiovascular disease or cancer directly impact rate tiers.
• Tobacco and Nicotine Usage: Cigarettes, cigars, vaping products, and chewing tobacco elevate rates by 200% to 300% compared to non-tobacco tiers.
• Policy Term and Face Amount: Longer term durations and higher coverage totals increase annual premium obligations.

To examine official rate guidelines, licensing details, and financial security disclosures, consult the National Association of Insurance Commissioners (NAIC) or review state insurance department filings.

Ameritas Term Life Insurance Feature Comparison

The following table summarizes key operational parameters across standard Ameritas term life options:

Advantages and Disadvantages of Ameritas Term Life

Advantages

• Mutual Company Structure: Owned by policyholders, fostering long-term stability and customer-centric capital reserves.
• Strong Financial Ratings: Consistent "A" level ratings from A.M. Best and S&P confirm high solvency.
• Flexible Underwriting: Accelerated options streamline processing for healthy applicants without compulsory medical exams.
• Robust Conversion Features: Guarantees policyholders access to permanent insurance options later in life regardless of changes in health status.

Disadvantages

• Limited Direct Online Binding: While digital quotes exist, completing certain custom policies requires working through a licensed broker or financial representative.
• Rider Restrictions: Specific riders, such as Child Term or Waiver of Premium, carry strict issue age limits and additional costs.
• Cost Variance: For basic term coverage without specialized riders, premiums may occasionally be slightly higher than low-cost digital-only competitors.

Frequently Asked Questions

Does Ameritas require a physical medical exam for term life insurance?

Not always. Qualified applicants applying for lower coverage limits (often up to $500,000 or $1,000,000, depending on age) may qualify for accelerated underwriting. In these cases, Ameritas evaluates prescription histories, motor vehicle records, and MIB databases to approve coverage without requiring blood draws or physical examinations.

How long does the Ameritas underwriting process take?

Accelerated underwriting can process approvals in 48 hours to a few business days. If full medical underwriting is required—including a paramedical exam and Attending Physician Statements (APS)—the process typically takes 3 to 6 weeks.

Can I convert my Ameritas term policy to permanent life insurance?

Yes. Ameritas term policies include a term conversion rider. This allows policyholders to convert all or part of their term coverage into an Ameritas permanent life insurance policy (such as whole life or universal life) before the conversion window expires, without presenting evidence of medical insurability.

What happens when my level term policy period ends?

When the initial term (e.g., 20 years) ends, the policy loses its level premium guarantee. In most cases, the policy can be renewed annually, but the premium increases significantly each year based on the insured's attained age. Most policyholders choose to convert, apply for a new term policy, or drop the coverage when the original term expires.

Are death benefits from Ameritas term life insurance taxable?

In general, life insurance death benefits paid to a designated personal beneficiary are received free of income tax under Internal Revenue Code Section 101(a). However, interest earned on delayed claim payments or policies paid directly into taxable estates may incur tax obligations.

Summary and Practical Recommendation

Ameritas represents a financially secure choice for term life insurance, backed by strong financial ratings from A.M. Best and S&P. Its mutual structure and flexible term products suit individuals seeking reliable income protection, mortgage coverage, or business continuity planning.

Next Actions:

1. Determine Coverage Needs: Calculate income needs, mortgage balances, and future liabilities to identify appropriate term lengths (10 to 30 years) and coverage amounts.
2. Gather Health Records: Document active medications, family medical history, and personal healthcare details to expedite underwriting.
3. Compare Rate Quotes: Request tailored quotes through a licensed independent broker to compare Ameritas against peer mutual carriers.
4. Evaluate Conversion Requirements: If long-term permanent coverage may be needed in the future, review conversion window deadlines prior to finalizing the policy contract.

Disclaimer: This article is for informational and educational purposes only and does not constitute formal legal, financial, or tax advice. Insurance products, coverage limits, policy riders, and underwriting guidelines vary by state and carrier. Consult a licensed financial advisor or insurance professional to discuss specific policy needs.