Category Archives: Personal Finance

Life Insurance for Seniors Over 70

It’s interesting that many seniors assume life insurance will no longer be available to them once they are over age 70. Most think that the cost will be prohibitive or that medical issues will disqualify them from being approved for coverage.

In this article, we’ll debunk the myth that life insurance for seniors over 70 is out of reach and even show you how affordable insurance for seniors can actually be.

Most seniors know that there are several types of insurance to consider, but are unsure of the type that will best meet their needs and budget. The type of life insurance you should purchase will always depend on your actual need for insurance. The price you pay for coverage is immaterial if the policy will not be the solution to your individual needs.

 

Why would a Senior over 70 Need Life Insurance?

 

Believe it or not, there are many people out there who believe that once you are a senior your need for life insurance is considerably reduced because of the size of your estate. They mistakenly believe the longer you’ve been alive, the bigger your estate becomes. Regretfully, that is not always the case.

Many seniors cashed in or sold their life insurance policies in order to survive the market crash in 2007 and then found that it was difficult or expensive to replace it after the market returned to normal.

Other seniors worked most of their adult lives and had group term insurance coverage that they assumed would be enough coverage for a lifetime but only to find when they retired, their group term insurance coverage wasn’t portable.

In many cases, uninsured seniors didn’t realize that their surviving loved ones would have to bear the burden of funeral costs and other final expenses when they passed away and only began to consider how this could affect their loved ones after seeing final expense insurance commercials on TV.

 

Which type of Life Insurance Makes Sense for Seniors over 70?

 

The life insurance industry is always innovating and bringing new products to the market place. They do this to respond to the needs of consumers and compete with companies who are slow to develop new products. Here are the most popular types of life insurance for seniors to choose from:


Term Life Insurance

 

Term life insurance is the least expensive type of life insurance but is typically not the best solution for seniors since it is not permanent and builds no cash value. Although most companies will offer renewals of a term policy, the renewal term is typically for a year only. This means that each year you renew your term insurance the rates will go up according to your age and can easily become unaffordable when you are over 70.


Universal Life Insurance

 

Although universal life is considered permanent insurance life insurance, the required premiums are not guaranteed since the policy uses a portion of the cash value in the later years to pay the increasing cost of the life insurance.

You can elect a Guaranteed Universal Life insurance policy which is similar to whole life but the policy does not build cash value over time since all the cash is used to cover the increasing cost of your life insurance.


Final Expense Whole Life Insurance

 

If your goal is to provide the funds needed for your surviving loved ones to pay for your funeral costs and other final expenses like unpaid medical bills or unpaid nursing home costs, final expense life insurance whole life insurance) is the better solution for seniors over 70. Companies that offer final expense insurance have liberal underwriting guidelines, do not require a medical exam or blood/urine tests, and will approve seniors who have typical health issues like diabetes and high blood pressure without requiring a waiting period.

 

What if I have Health Issues?

 

Although there are many seniors who are blessed to have great health in their seventies, most seniors have to deal with health issues as they age. Some of the more common health issues that seniors deal with are:

Even though most of these diseases can become chronic, they may not necessarily prevent seniors from buying life insurance when they are over 70. Knowing that seniors frequently must deal with these diseases, many life insurance companies are offering graded benefit or guaranteed issue policies which allows the company to accept seniors with high-risk medical conditions.

 

How much Life Insurance do Seniors over 70 Need?

If you are considering a final expense life insurance policy, the death benefit should be at least sufficient to cover funeral and burial expenses that would be passed on to surviving loved ones. If your budget will support additional death benefit, then, by all means, consider additional benefit for taking care of unpaid medical expenses or nursing home costs that weren’t covered by Medicare.

Funeral and burial expenses are based various things like where you live, the type of funeral you want, the memorial service, and other bells and whistles that funeral directors use to fatten the funeral and burial invoice. According to national funeral services like Parting.com, Funeralwise.com, and the NFDA (National Funeral Directors Association) you can expect an average funeral to cost between $9,000 and $12,000 per year. It’s also important to note that the longer you live, the more it will cost to bury you when your time comes.

 

How much does Final Expense Life Insurance for Seniors over 70 Cost?

 

Just like traditional life insurance, final expense insurance rates are based on three primary things; your age at the time of application, your current health and health history, and the amount of coverage you want to purchase. Although most final expense insurance companies offer death benefits of $5,000 to $30,000, the most popular policy amounts are $10,000, $15,000, and $20,000.

 Here are actual rates for a $10,000 policy for a male and female non-smoker: 

 Here are actual rates for a $15,000 policy for a male and female non-smoker: 

 Here are actual rates for a $20,000 policy for a male and female non-smoker: 

Please click here for accurate rates for your actual age.

 

What if I don’t Qualify because of Health Issues?

 

Seniors who have severe or multiple health issues can still purchase life insurance even if you don’t medically qualify for a standard final expense insurance plan. As we mentioned earlier, there are companies that offer guaranteed issue (guaranteed acceptance) life insurance for anyone who is alive and under age 86. This means that you can get the final expense insurance coverage you need and not have to worry about serious or multiple medical conditions.

Companies that offer guaranteed issue life insurance do charge more and typically have a two or three-year waiting period before they will pay the full death benefit if your death is the result of natural causes. Typically, if the insured dies from natural causes during the waiting period, the insurance company will pay the sum of all premiums paid in plus an additional 5 or 10 percent.

If, however, your death is the result an accident, the company will pay the full death benefit from the first day of coverage. This means virtually any person under the age of 86-years old can buy final expense life insurance.

Conclusion

Now that you understand that Life Insurance for Seniors over 70 is not out of reach, don’t delay in getting covered because your life insurance rates will never be less than they are today.

 

For more information about Life Insurance for Seniors over 70 and to get a free and confidential quote, call the insurance professionals at LifeInsure.com

(866) 691-0100 during normal business hours or contact us through our website.

 

 

Article source: https://www.lifeinsure.com/life-insurance-for-seniors-over-70/

How to File a Life Insurance Claim

Talking about a life insurance policy can be a little awkward. Maybe you’re trying to figure out how much coverage you need, or if you or your spouse should get a policy. But it’s an important conversation to have – especially if you’re a listed beneficiary on someone’s policy. While it can be morbid to think about having to actually file a life insurance claim, you should know how to, so you can avoid any frustrating delays. Billions of dollars are left unclaimed by life insurance beneficiaries because people are unaware of policies or don’t know that they’re beneficiaries. Having the right information and the right documents available will help keep the process as simple as possible.

What Do You Need to File a Claim?

There are a few documents to have and steps to take before you can start the process of filing a life insurance death claim.

Make sure you know your beneficiary status. In order to file a life insurance claim and receive the policy benefit, you have to be a beneficiary of the policy. Your loved one who has the policy has to make that decision in advance, for you to be listed.

Know the who the insurance provider is and the policy number. This is pretty straightforward, but you’ll need to know the right insurance provider to contact and what the policy number to reference is. Having this information up front will help cut down the time spent calling different insurance companies or trying to figure out the policy number. If you can’t find the insurance provider—perhaps they rebranded or combined with another company—call your state’s Department of Insurance for information.

Talk to an agent to answer any initial questions you have. Once you know the insurance provider, you may want to call before making the claim to ask an agent how to best prepare the documentation needed. You may also want to ask about what the company’s process looks like, and who the right person to talk to is who can help you.

Have a copy of the death certificate from the funeral home. It’s a good idea to have a few copies of several different documents – like a death certificate or closed bank account – because a variety of claims will require these.

How Do You File a Claim?

Step 1: Prepare the documents

Now that you know which documents you need, get them organized and readily available for when you contact the insurance provider to make the claim.

Step 2: Contact an Agent/Producer

You’ll want to first contact the policy’s agent/broker to discuss documents and information needed to file a claim. However, now you’ll want to ask:

  1. If you need to submit a death claim form along with the death certificate
  2. If there are any other forms necessary to fill out
  3. Where to send these forms when they’re completed, or if the company requires you to submit the claim online
  4. What the claim payment options are (including payment frequency, amounts and timing)

If you’re having a hard time with the passing of your loved one and are having difficulty getting the paperwork sorted, ask the insurance agent to help you.

Step 3: Submit required information and documentation

Once you’ve submitted all of the required information and documentation to the insurance provider, it may take some time for them to review everything. Make sure to ask for a timeline when speaking with an agent. That way, you have a clear understanding of when you’ll hear back about your claim.

How Do You Know if a Claim Will Go Through?

There are terms and conditions for a life insurance claim to be approved. First and foremost, the policy holder’s death must occur while the policy is still in force. The cause of death matters, too, as some policies have specific terms around what’s covered.  Most life insurance policies won’t provide the payout in cases of suicide within the first two years of the policy.

How Do the Payments Work?

There are typically two different ways to receive a life insurance death claim: through a lump sum payment or through installments over time. Make sure to ask the insurance provider in your initial conversation about payment options available.

Lump sum payment: The insurance provider will issue you a check or they may offer you a draft account. Similar to a checking account, a draft account allows you to withdraw money from it until the funds are gone.

Installments: The insurance provider may hold onto the funds and distribute them to you over time. It depends on the company, but there are typically a few different options for installment plans. You may be able to convert the payout into an annuity that provides regular payments for the rest of your life. Or, you may be able to set a fixed amount that’s distributed at regular intervals until the policy payout amount is gone.

You also want to keep in mind whether your loved one may have had more than one policy in their name. For example, many employers offer group life insurance policies as an extra benefit. If your loved one was working before they passed, check with their employer’s Human Resources department to see whether there’s a policy in place, and what next steps you need to take if there is.

Knowing how to file a death claim for a life insurance policy is important. Hopefully, you’ll never have to do it. However, should the time come, the last thing you’ll want is to get caught up in frustrating processes with an insurance provider. If you’ve just started having the conversation about which life insurance policy is best for you or your loved one, learn about the differences between Term and Whole Life Insurance.

Caroline Gillard is a PR Specialist and a current board member of Women in Listed Derivatives (WILD). WILD is a non-profit organization that’s mission is to promote networking and relationship-building among women in the listed and over-the-counter derivatives industry through social and educational events.

Article source: https://www.lifeinsure.com/how-to-file-a-life-insurance-claim/

Preparing for a Life Insurance Medical Exam

At LifeInsure.com, our purpose is to provide you with great service and find you the most competitive prices. Your satisfaction is our goal. We Represent many of the top rated insurance companies in the United States.

Upon review of this site, you will find information that will help you gain an understanding of life insurance. Using our quote engine, you can compare a large number of highly rated companies, allowing you to find an affordable term life insurance or universal life insurance policy.

Competitive Prices from the Top Life Insurance Companies

Insurance companies establish their life insurance rates so every person of the same age and health would get the same rate from the same company. It’s not like buying a car where you negotiate.  You get to see how all the companies in the life insurance database would rate someone of a certain age, for a certain amount of life insurance. The difference is you don’t have to call the various insurance companies or agents. You just enter your information and the life insurance market search appears instantly. Ultimately, the insurance company’s underwriting process (where they review your medical history and other factors) determine your final rate.

Even though the life insurance rates are set, we will do everything we can do get you a low-cost policy that fits your needs. We do that with our real-time quoting engine and our experience with the insurance companies at no extra cost to you.

You can contact us to clarify any of this and speak with one of our experienced life insurance agents.

Disclaimer: Our quote engine displays the quoted class as determined by you on the input page. The complete underwriting process is needed to determine whether you qualify for a rate class and what your actual premium will be. The quotes are shown for comparison purposes only and are subject to change during the underwriting process.

2. The Application

After you have reviewed the life insurance quotes and decided which policy you would like to apply for, you submit an application request from the quote engine.  One of our licensed representatives will call you to complete the application over the phone (you will also have the opportunity to schedule a convenient time to do so after you submit the request).

The application is typically two parts – we take a very short application and then we will either transfer you to the insurance company’s application center, at which time you will complete the rest of the application or we will schedule your follow-up interview for you.  Your medical exam will also be scheduled, if needed, at that time.

Each insurance company has its own application that includes a series of medical and financial questions. The answers you provide to these questions will be used to underwrite your coverage. The interview will last 25-30 minutes depending on the information required for the coverage you have selected.

Premium Payment

Premium payment is not required with your application.  However, you may be given the option of submitting payment with your application in order to get temporary coverage during the underwriting period.  Each insurance company has their own guidelines concerning temporary coverage, so please read the instructions carefully in your application packet.

3. The Medical Exam

Life Insurance Medical Exam
Applications for most life insurance policies require a paramedical exam from a registered nurse. The exam can be done at your home or place of work or local office, if available. These nurses are contracted with one of the paramedical exam companies approved by most major insurance companies.

The exam takes approximately a half hour and can be done Monday through Saturday between 8:00 A.M. and 8:00 P.M. The exam typically includes blood and urine samples, blood pressure readings, height and weight measurements and questionnaire (additional tests, such as EKG, might be required due to age or insurance amount applied for). As it is recommended that you fast for eight hours prior to the exam, we usually suggest you get your exam first thing in the morning, if possible.

In order to get the best possible results from your exam, please follow the tips below:

Following these tips can help you attain the most favorable and accurate medical exam results:

  • Fast for 4-8 hours prior to the exam and try to schedule the exam for first thing in the morning, prior to eating.
  • Avoid stimulants (caffeine, alcohol, cigarettes).
  • Limit salt and high-cholesterol foods 24 hours prior to the exam.
  • Refrain from drinking alcoholic beverages for at least 24 hours prior to the exam (can increase fat in blood and liver functions).
  • Limit caffeine and nicotine 24 hours prior to the exam (can increase blood pressure, cholesterol).
  • Smokers should not smoke 30 minutes prior to exam (tends to constrict artery walls and elevate blood pressure).
  • Drink a glass of water one hour prior to the exam.
  • Get a good night of sleep prior to the exam.

Helpful reminders

  • Be prepared with a photo ID at the time of the medical exam.
  • Provide names and dosages of current medications
  • Provide any history of problems associated with providing a blood sample.
  • Have available names, addresses and phone numbers of any doctors or clinics visited in the last five years.
  • Tell the examiner if exercise is a regular activity.
  • Tell the examiner if vitamins or aspirin are taken on a daily basis.If you are overweight or have large muscular arms, ask the paramed examiner to use a large blood pressure cuff.

If you have experienced one of the following impairments, you should follow these additional guidelines:

HYPERTENSION

  • Avoid stimulants (caffeine, alcohol, cigarettes).
  • Schedule a morning exam.
  • Have the examiner take your blood pressure after you have had a chance to relax — three attempts at 10 minute intervals.
  • Take usual medications.

DIABETES

  • Schedule the exam for 2½ hours after a meal (no sweets or sugars after the meal), but if blood is being drawn, fast for 4-8 hours prior to the exam.
  • Empty bladder right after meal.
  • Drink 1-2 glasses of water before the exam.
  • Drink 2-3 glasses of water before the exam.
  • Avoid sweets or foods with sugar content before the exam.
  • Avoid strenuous exercise, such as running, for 24 hours prior to the exam.

URINARY SPECIMEN PROBLEMS (albumin, Red Blood Cells [RBCs], sugar, etc.)

  • Empty bladder right after meal.
  • Drink 1-2 glasses of water before the exam.
  • Drink 2-3 glasses of water before the exam.
  • Avoid sweets or foods with sugar content before the exam.
  • Avoid strenuous exercise, such as running, for 24 hours prior to the exam.

CORONARY, EKG PROBLEMS

  • Avoid stimulants (caffeine, alcohol, cigarettes).

FINAL TIP

  • Do not try to hide any health issues or medical history – be completely candid with your answers on your application and with your medical examiner.

Following these tips will ensure a speedy exam and best results. However, if you would prefer to apply for a policy without having a medical exam, there are some options. These types of policies are typically more expensive, but for those who prefer not to get an exam, they present another option.

4. The Underwriting Process

Article source: https://www.lifeinsure.com/preparing-for-your-life-insurance-medical-exam/

Life Insurance for Children

You’ve no doubt seen commercials for child life insurance policies and may be wondering whether or not it is useful or appropriate to purchase one. We understand that mortality is a delicate issue, made even more sensitive when we bring our children into the discussion. Buying a child life insurance policy may be a wise financial decision, but you should base your choice on your family’s needs.

 

Consider the Purpose

 

If you are considering life insurance for your children, you should first ask yourself what you think the purpose of the life insurance is. Would it be to cover funeral expenses if the absolute worst thing should happen? If so, you may want to consider adding a child protection rider onto your own life insurance policy. Coverage can be purchased in units usually at a nominal price. But remember, a child term rider on your policy will be temporary coverage and most carriers cap this rider at about $10,000 which would likely fall short of paying for a child’s funeral.

What about buying a cash value policy that can double as a college fund?  These policies will build cash value over time and can be surrendered over time in order to use the funds to help with college expenses, buying a car, or even a cash graduation gift. There are other strategies like a 529 plan that may be more effective but they typically can only be used for one predetermined purpose. The cash value in a whole life policy can be used for any purpose you’d like, and it would be your decision as the owner of the policy.

Transferring Ownership of the Policy

 

Many parents and grandparents purchase life insurance on their children or grandchildren when they are born and then at some point in time, they transfer the policy to the child so they can keep the policy for a lifetime. For example, let’s say you have two young children that are a couple of years apart and you decide to buy a cash value life insurance policy on them at an early age. You may have also decided to start a 529 college plan for each child since the life insurance is so inexpensive.

When your children reach college age, you can fund their education using the 529 plan and then transfer the insurance policy to them as well. Your children can then decide to cash the policy in to buy a car or for some other large purchase or they can decide to keep the policy in force for final expenses if they should die unexpectedly.

 

Future Insurability Options

Another important reason why it may be a good idea to purchase life insurance for children is if there is a chance that they will not qualify for a policy as adults. If you have a family history of illnesses like hypertension or diabetes, it may be difficult for your child to find an affordable life insurance policy as he or she gets older. 

In fact, some life insurance plans for children will include an option to increase the face amount at certain intervals without proof of insurability. This option could be a lifesaver for a child that develops a serious medical condition and cannot purchase insurance at affordable rates when they are older and need additional coverage.

The topic of health is relevant to the subject of insurance, as your health has a direct effect on your risk of mortality and, therefore, on your life insurance premiums.

Two of the biggest factors in determining health class are tobacco use and build (height/weight ratio).  Smokers pay significantly more for their life insurance because it is proven that smoking directly (and indirectly) impacts your mortality.  Overweight people have a higher risk of heart disease, some types of cancer and diabetes, which all impact your mortality.

So, if your child who is now an adult, takes up smoking, and also becomes overweight cannot qualify for affordable life insurance, that policy you purchased for your child when he or she was three years old will start looking like their only option to have affordable life insurance.

 

While we’re on the subject of Smoking and Weight

It’s easy to tell people to quit smoking and/or lose weight when you’ve never smoked or put on some additional weight.  And by the way, talking about another person’s weight is never an easy subject to broach.

Since we, as individuals, can’t seem to handle these problems ourselves, the government (both Federal and Local) are stepping in to save the day.  The City of San Francisco (as well as the County of Santa Clara, CA) is helping to ensure the future health of your children (and, consequently ensuring better insurance health classes for them).  The S.F. Board of Supervisors has voted (8-3) to prohibit restaurants from giving away toys with meals that don’t meet certain nutritional standards for calories, sodium, and fat.  This idea is spreading to other local governments, so get ready to bid a fond adieu to, I’m happy to say, the Happy Meal.

The federal government, under the guise of the FDA, has decided that tobacco use has become an epidemic, especially with school-age children.  As we apparently can’t stop ourselves (or our children), the FDA has devised a plan to scare us out of the habit.  By placing pictures of diseased lungs and smokers with holes in their throats, and other graphic images of smokers with diseased body parts, the Feds are going to scare us straight (or nicotine-free).  Then, they’ll probably approve a drug for all the freaked-out nicotine-craving addicts, but maybe that should be a subject for another article.

 

Life Insurance for Children – Pros and Cons

 

You would think that buying an inexpensive cash value life insurance policy for your children would be a no-brainer but many parents and grandparents balk at the idea and some are even unwilling to even discuss it. And, insuring your children may not be the best investment under certain circumstances. As with any life insurance product, there are pros and cons depending on your circumstances.

Pro

Cash value life insurance can serve two purposes. It can be a resource for the funds needed to pay for funeral and burial expenses. And, since the policy builds cash value over time, it acts as a savings vehicle that normally earns more interest than a savings account. In fact, the minimum interest paid is stated in the contract and guaranteed as long as the policy remains in force.

Con

Some financial advisors believe that the fees associated with a life insurance policy considerably diminish the returns and a policyholder could likely earn more if they invested the premium that is over and above the cost of insurance elsewhere. This sounds a lot like “by term and invest the rest.”

Pro

In the event your child dies unexpectedly, the life insurance policy would provide the funds needed to pay funeral expenses, counseling for surviving loved ones, and income for a parent who must take time off from work to grieve their loss.

Con

Statistically, it’s very unlikely to lose a child before age 21. It may make more sense to regularly deposit money in a savings account that charge minimal or no fees.

Pro

Purchasing whole life insurance when a child is very young guarantees that they will have at least some coverage if they become ill in later years and cannot medically qualify for affordable life insurance.

Con

Some financial advisors believe the risk to be far too remote and the parent or grandparent has other options that require no fees to mitigate this risk.

 

The Bottom Line

 

So there you have it. We’ve presented a very good argument for insuring your children or grandchildren along with the benefits a life insurance policy on the children can provide. We also presented the other side of the equation provided by legitimate financial planners. Now it’s up to you to decide.

 

 

 

Article source: https://www.lifeinsure.com/life-insurance-for-children/

5 Tips for Buying Affordable Life Insurance

Once you discover life insurance does not cost as much as you anticipated, you’ll be even happier to know that there are certain steps you can take to make certain that you end up buying affordable life insurance.

Wouldn’t it be a good thing to know those well-kept secrets that reduce your life insurance rates? The agents typically know how to keep your rates low but are they all sharing this information? Remember, agents are paid on a commission basis so the more premium a policy brings in, the higher their commissions will likely be.

Please don’t misunderstand, we certainly don’t maintain that agents won’t always act in their clients’ best interest.  Some are just more knowledgeable than others when it comes to finding the “sweet spot” for your life insurance policy. Here, we’ll provide 5 tips for buying affordable life insurance.

 

Tip #1 – Buy Life Insurance Online through an Independent Agent

 

There are thousands of independent insurance agents out there with many of them doing business online through a website. Since independent agents represent multiple insurance carriers, you will not be forced into a cookie-cutter policy and your business with be shopped with all of the carriers they represent. Your independent agent should be experienced and reputable, and represent the majority of the highly-rated insurance carriers. Here are some additional recommendations:

– Rather than going to multiple insurance company websites to get quotes, look for a site that represents and offers quotes for the major life insurance companies.  The price is the same, whether you purchase a policy from the insurance company or a broker.

– The website should offer quotes without asking for a lot of personal contact information.  You’re only looking for quotes right now and shouldn’t have to give more than your name, phone number, email address.

– When you enter your basic information, the website should show you quotes – not a list of companies that you can access to get quotes.  Why should you have to enter your information twice (or 3 or 8 times)?  The companies that will ultimately quote you are paying that website to be on that page.  Why bother?  Most of those companies can be found by searching Google, Bing or Yahoo?

– Your quotes should be realistic and, therefore, should be based on your health profile.  While no quotes are guaranteed, make sure your quote is based on the same underwriting criteria used by the insurance companies. If you must guess, be realistic about your health.

– Make sure the website is staffed by insurance professionals who can answer your questions and assist you with the application and policy delivery, should you choose to purchase insurance.  Many sites do not process applications or offer assistance during the underwriting period.  Rather, they sell your information to several (sometimes as many as eight) life insurance brokers, who will try their hardest to reach you and sell you a policy.

– Make sure the website has an updated privacy policy and legal notice.  You should know who you are trusting your information with.

– Read the About Us section.  If one doesn’t exist or it doesn’t tell you who you’re doing business with (I’ve seen a lot of these lately), you probably shouldn’t be doing business with them.

– Before you enter any personal information, ensure that the web page you are on is secure.  It should have a Secure Seal of some sort and the web address should start with https (rather than http).

There are many life insurance websites on the Internet, but only a handful of them meet all these criteria.  Shop for the website first, then shop for insurance.  While it might seem like it takes longer to do it this way, you will most probably save time, headaches and money in the end.

 

Tip #2 Know how much Life Insurance to Purchase

buying affordable life insurance

 

Figuring out how much life insurance death benefit you need to get can be quite challenging. Purchasing life insurance is an important decision, and it certainly isn’t one that should be made lightly. Selecting the correct amount of coverage is just as important as choosing the right type of policy. When you want to figure out how much life insurance is enough, a life insurance calculator can be very beneficial.

There are several different types of calculators available online. They’re free and easy to use. You can quickly and easily evaluate your life insurance needs using several different calculations, such as the human life value or multiple of earnings method. To get results, you’ll simply need to enter a few details about your goals, finances, and other relevant factors into the calculator of your choice.

Determine the Life Insurance Death Benefit with the Multiple of Income Method

Looking for the simplest method of determining how much life insurance is enough to provide protection for your family without getting into formulas? There are a number of different ways to calculate the proper amount of coverage. While many different variables can impact the amount of coverage you need, the multiple of income method can be a quick way to determine the minimum amount of coverage you might need.  We do recommend though to take the minute or two to use the interest method described in these tips.

Life insurance calculator tip using multiple of income:

This technique for determining life insurance needed simply involves multiplying your annual income by a multiplier, based on your age at the time the policy is purchased.

  • 25 years old? Choose life insurance valued at approximately 25 times your annual income.
  • 35 years old? You’ll want to get life insurance that covers about 20 times your yearly earnings.
  • 45 years old? Based on multiple of income method, it’s recommended that you get life insurance worth approximately 15 times your annual income.
  • 55 years old? It’s a good idea to make sure that you’re life insurance policy is for an amount about 10 times your annual earnings plus any estate tax liability that may be due.

Calculating Life Insurance Needs with the Interest Method

There are several different approaches to figuring out how much life insurance is enough. The interest method is one of the most commonly used techniques for estimating life insurance needs. Simply think about how much money, on a yearly basis, your family would need to live comfortably. Once you have that number in mind, come up with a realistic interest rate you could expect to earn on invested money.

You can use these two figures – the amount of yearly income needed to live comfortably and a realistic interest rate – to calculate the minimum amount of life insurance you need. Divide the annual income figure by the interest rate, and the number you get represents the amount of life insurance you should get. The resulting figure provides the amount of cash that you’ll need to invest in an interest-bearing account to provide your family with the annual income they need. Example:  Let’s say your family would need $100,000 per year and you feel that 5% is a realistic interest rate.  Dividing $100,000 by 5% (.05) would come to $2,000,000 needed to provide $100,000.  You can deduct any cash or liquid assets from the $2,000,000.

Eliminate Guesswork with Life Insurance Calculators

Looking for the best way to evaluate how much life insurance is enough? There are several different ways of estimating insurance coverage. The recommended method for determining coverage may vary significantly from one life insurance professional to another. When you want to be sure that you’re making the right decision about the amount of protection your family needs, it’s a good idea to use an online life insurance calculator.

Using a calculator can take the guesswork out of estimating your basic life insurance needs. Instead of using a single mathematical formula to evaluate insurance needs, life insurance calculators typically take multiple factors into consideration, such as inflation, interest rates, human life value, and other important variables.

Make sure that you are using a calculator provided by reputable sources. Be wary of calculators not provided by insurance professionals. Instead, use options provided by highly rated life insurance companies and online life insurance agencies. Their calculators are designed specifically to be tools for helping people make sound decisions about their life insurance needs.

 

Tip #3 Be Prepared before You Start Shopping

 

There are various considerations that you need to be aware of before you begin shopping for life insurance. At the top of the list is the easiest to determine. Why do you need life insurance and what do you want it to do for you?

Economic needs – Life insurance provides coverage for your family when end-of-life costs threaten their financial security. When shopping for life insurance, you should consider the types of liabilities that will have to be addressed when you are gone. If you think that these expenses might be too much for your loved ones to afford, you might want to consider some form of coverage.

Health needs – Your current medical condition can impact the affordability of life insurance, either positively or negatively. Certain plans may be the wrong choice depending on your needs, so it’s important to speak with an industry professional before making your final choice.

Duration of coverage – Depending on the situation, you might not need an open-ended policy like universal life or whole life insurance. Instead, you might want to opt for term life insurance, which protects you over a certain period of time, usually in “terms” of 10, 15, 20 or 30-year categories. If your needs for life insurance protection aren’t lifetime needs, term life insurance is probably the best choice for you.

 

Tip #4 Ignore the Myths about Buying Affordable Life Insurance

 

Have you ever gotten what you thought was great advice from a family member, friend, or coworker, only to find out it was useless? Most people are happy to give advice about life insurance but the problem is their advice is usually based on myths rather than facts. Here are a few tips that are really myths that you should ignore:

Life Insurance Coverage at Work Is Enough

Maybe, maybe not. If you have a spouse, dependents, or tax needs then additional coverage may be necessary.  However, for a single person of modest means, employer-paid or provided term coverage may actually be enough.

You’re Single and Don’t Have Dependents, So You Don’t Need Life Insurance

I am a firm believer that even single persons need at least enough life insurance to cover funeral costs. Additionally, I believe that everyone should have enough life insurance to cover the cost of personal debts and unpaid medical bills at a minimum.  If you are uninsured, you could potentially leave a legacy of unpaid expenses for your family or executor to deal with.

Your Life Insurance Coverage Only Needs to Be Twice Your Annual Salary


There is no cookie cutter answer for this.  The amount of life insurance each person needs depends on their specific situation. In addition to medical and funeral bills, you may need to pay off debts such as your mortgage and provide for your family for several years. A cash flow analysis is usually necessary to help determine the true amount of life insurance you should consider purchasing.

Buy Term and Invest the Difference


Once again, there is not a cookie-cutter answer or approach for this.  There are distinct differences between term life insurance and permanent life insurance and those differences can become even greater, depending on the company you purchase from.   One thing is certain though, the older one gets, the higher the costs of term insurance becomes.  If you know for certain that you must be covered at death, then you should consider permanent life insurance. I would also suggest comparing total premiums over the length of time you feel you need coverage so you are able to see the lifetime expense.  Please do not be fooled and not address the insurability factor once your term policy expires.  The risk of not being insurable later in life could be disastrous for those who may have estate tax issues and need life insurance to pay them.

 

Tip #5 Buy Your Life Insurance at LifeInsure.com

Fortunately, LifeInsure.com can meet the criteria we recommend you look for in an independent insurance agent. Our firm is experienced and reputable, and we represent all of the highly-rated life insurance companies which helps us deliver the best solution for your circumstances.

 

 

 

 

Article source: https://www.lifeinsure.com/5-tips-for-buying-affordable-life-insurance/

How your health affects your life insurance rates

We are sorry to be the ones to break the news, but you are not going to live forever.

This is one of the many reasons having life insurance is important to you and your family.

You cannot control whether you die or not, but you can have a positive influence on how long you live.  

The average life expectancy of people in the United States is 78 years old and is rising. This is because of how health-conscious the world has become, and also due to improvements in technology and healthcare.

People are beginning to make health-conscious incremental changes to their lifestyles while they are young, in order to better themselves in the future.

Living a healthier lifestyle not only saves your life it saves you a ton of money on life insurance.

What is Considered Healthy to a Life Insurance Company?

Life insurance companies determine rates in a process called underwriting.

Underwriting is the process of calculating the overall risk someone poses to the insurance company having to pay out a claim during the life of their policy.

One of the main factors accounted for in the underwriting process is health.

Before we dive deeper into how different aspects of your health affect your life insurance rates, this infographic briefly explains what this article covers:

What Health Factors are Taken Into Consideration by Life Insurance Companies?

There are a lot of factors taken into consideration when determining someone’s overall health.  Life insurance companies typically take these main factors into account when determining risk:

  • Age
  • Gender
  • Height – Weight ratio
  • Family history
  • Medical history
  • Smoker/non-smoker
  • Lifestyle

How Weight Affects Life Insurance Rates

Yes, how much you weigh plays an important role in your health.  

When it comes to weight and life insurance, a majority of life insurance companies look at BMI, or Body Mass Index, to calculate risk based on average weights based on your height.

The Center for Disease Control reports that more than one-third of Americans are considered obese.

This is an astonishing number but society has taken notice of this and, as a result, many people are changing their diets accordingly. Life insurance companies have taken notice too, they understand the health implications that can arise if someone is considered overweight or obese.

Diabetes, heart problems, and high blood pressure are just a few examples of health problems that can be caused by being overweight. Life insurance rates for obese and overweight people are often higher, and much higher with health complications resulting from their weight.

Some athletes have a higher BMI, and as a result, can be considered overweight or even obese when it comes to this quick weight analysis.

However, for people in fairly good health or better, a medical exam life insurance policy will be best for you anyways, in order to get the cheapest rates.

No medical exam life insurance exists, but this is mostly for people who are in poor health or need insurance very quickly. Much higher rates are associated with this type of life insurance as a result.

How Age Affects Life Insurance Rates 

When you apply for life insurance, insurance companies will attempt to determine your life expectancy – how long you are expected to live, given the information you provided.

Your life expectancy is calculated based on millions of data points that life insurance companies are able to compare.

Age has the greatest effects on the pricing of your policy because as your age increases so does your chances of passing away. Sad, but true.

This is why we recommend getting a life insurance policy while you are still young and in good health. So, what is the best age to purchase life insurance?

The optimal age to purchase life insurance is under 35. This is generally the age when people start a family and will have others depending on their income. Life insurance is best purchased when you are at low risk, and locking in rates at a young age is a great way to get insurance for your family at an affordable rate.

How Gender Affects Life Insurance Rates

Another characteristic that life insurance companies will look at when quoting you a price is your gender. Life insurance companies use statistical models to determine how long someone will be around.

Women live 5 years longer than men on average. As a result, women have lower life insurance premiums, because they can pay longer.

How much more expensive is life insurance for men?

Usually, men will experience 25-40% higher rates than women for life insurance, depending on age.

How Your Profession Affects Life Insurance Rates

Some professions put you at a higher life insurance risk than others. Some jobs that are considered to classify someone as a high risk individual are:

  • Police officers
  • Firefighters
  • Soldiers
  • Race car drivers
  • Astronauts
  • Pilots
  • Many more…

Unless your job is seriously dangerous, your profession probably does not affect your rate as much as you would think. Life insurance companies may add an additional fee to your policy that is subject to change as your position changes.

How Does Lifestyle Affect Life Insurance Rates?

Your occupation is only one portion of how risky your life is on a daily basis. Your lifestyle also helps determine your life insurance premiums.

Do you sit on the beach and read a book for fun? Or, are you an adrenaline junky who races speedboats, goes hang gliding, cliff dives, and goes mountain climbing?

The more dangerous of a lifestyle, the greater the opportunity for something to go wrong. Life insurance companies can see this as a liability which, in turn, would raise your premiums. If you do live life on the edge, there is a much greater benefit for having a life insurance policy.

How Your Driving Record Affects Your Life Insurance Rates

This may come as a surprise but your driving record is also taken into consideration when getting a quote for a life insurance policy. The average person spends 293 hours a year in a vehicle. That is 12 full days!

The road can be a dangerous place and the longer you are on the road, the higher the chance you have of getting into an accident. It’s just math.

Life insurance companies can access your driving record and see your past offenses of violated traffic laws. The last 3 to 5 years are weighted the heaviest, so it may be beneficial to keep a clean slate before you purchase a life insurance policy.

How Does Smoking Affect Your Life Insurance Rates?

Perhaps the factor that impacts life insurance rates the most, other than being terminally ill, is smoking. Smoking is a huge red flag in the life insurance industry because of the negative effects it has on your body.

Life insurance rates for smokers are often 2-5 times higher than for non-smokers.

Smoking can take years off of your lives. It is the leading cause of lung cancer and is responsible for 480,000 deaths per year. The average smoker in the United States dies 10 years earlier than the average nonsmoker.

Life insurance companies see how great a risk smoking is on your life, so they pass that risk along to you through your rates. Luckily for you, smoking is a habit that can be kicked. 

Smokers who quit can get their rates back down to only about 10-20% more expensive than non-smokers within the first year of quitting (barring any other health condition).

Those who have a policy and plan on quitting can also get reduced rates by re-taking your medical exam to get a reclassification for your medical risk. This also helps to reduce rates, though not every policy offers this.

Frequently Asked Questions About How Health Affects Life Insurance

As we stated earlier, the best time to  purchase life insurance is while you are young and in good health. Your personal health has an enormous effect on the rate of your policy because it directly correlates with how long you will live. It’s simple, the healthier you are the longer you will live.

Life insurance companies want to insure healthy people who are at a low risk of passing away early. 

Maybe you are not in the best shape of your life right now but you still need life insurance coverage. Do not worry, there are “no medical exam” life insurance policies that can cover you.

These policies tend to be more expensive but they are great to use for coverage while you making the climb to a healthy lifestyle.

Let’s get to commonly asked life insurance questions:

“Can’t I just lie about my health to get a better price?”

We highly recommend not lying to your life insurance company because once they find out (which they will) it can void your entire contract.

All of the money that you paid for the policy would be wasted and it would leave your family without this important coverage.

Life insurance companies have each applicant get a medical exam in order to verify all of the information submitted, as well as to determine any underlying medical conditions. Unless of course it is a no medical exam life insurance policy.

The medical exam can be done by a medical professional in the convenience of your own home. It generally takes thirty minutes to complete the exam. Twenty minutes allotted for the verbal questionnaire and ten minutes for the standard and basic sample collections.

The verbal questionnaire is done to get some background on your medical history. Life insurance companies will want to know the name, address and phone number of your primary care doctor so they can contact them for medical records, if needed. Questions range from your personal health history to that of your family’s.

What to Expect on Medical Exams for Life Insurance

It is good to be prepared for a medical exam for life insurance.

In medical exams for life insurance, you will first be asked a series of verbal questions, which typically include some of the ones listed below.

Frequently Asked Questions on Life Insurance Medical Exams

  • Are you routinely taking any medications?
  • Have you had any prior hospitalizations?
  • Do you suffer from any conditions like depression or anxiety?
  • Have you had any major previous procedures?
  • Does your family have a history of heart disease or cancer?

Once the verbal questionnaire is finished, the medical professional will begin the measurement procedures. Starting out with your basic measurements, they will measure your weight and height.

Once the initial measurements have been recorded, the medical professional will take a urine and/or blood sample to screen for several health indicators and conditions. Life insurance companies are looking for conditions such as HIV, AIDS, cholesterol levels, glucose levels, nicotine levels, and proteins.

Even though the sample is taken and the medical test is finished within thirty minutes, it typically takes about 1-3 months for a life insurance policy to be approved and in force. 

For those in need of quick life insurance coverage, there is accelerated underwriting life insurance policies such as guaranteed issue and simplified issue life insurance that can offer affordable life insurance protection in a quick time frame, usually under 2 weeks, and in some cases as quickly as 24 hours.

Can I Fail the Life Insurance Medical Exam?

The medical exam is not made for people to pass or fail. It is done so the life insurance company can determine how high of a risk you are for them to insure. If you are unhealthy you will not fail the exam but your rates will be higher because of it. 

However, if the information submitted on the original application does not match the data collected during the exam then you may be denied coverage or you may have to additional testing done.

Not only will living a healthy lifestyle save you money on your life insurance policy, it will keep you around your family longer. Take the time to make sure you are healthy before you get a quote from a life insurance company.

Article source: https://www.lifeinsure.com/health-affects-life-insurance/

How your health affects your life insurance rates

We are sorry to be the ones to break the news, but you are not going to live forever.

This is one of the many reasons having life insurance is important to you and your family.

You cannot control whether you die or not, but you can have a positive influence on how long you live.  

The average life expectancy of people in the United States is 78 years old and is rising. This is because of how health-conscious the world has become, and also due to improvements in technology and healthcare.

People are beginning to make health-conscious incremental changes to their lifestyles while they are young, in order to better themselves in the future.

Living a healthier lifestyle not only saves your life it saves you a ton of money on life insurance.

What is Considered Healthy to a Life Insurance Company?

Life insurance companies determine rates in a process called underwriting.

Underwriting is the process of calculating the overall risk someone poses to the insurance company having to pay out a claim during the life of their policy.

One of the main factors accounted for in the underwriting process is health.

Before we dive deeper into how different aspects of your health affect your life insurance rates, this infographic briefly explains what this article covers:

What Health Factors are Taken Into Consideration by Life Insurance Companies?

There are a lot of factors taken into consideration when determining someone’s overall health.  Life insurance companies typically take these main factors into account when determining risk:

  • Age
  • Gender
  • Height – Weight ratio
  • Family history
  • Medical history
  • Smoker/non-smoker
  • Lifestyle

How Weight Affects Life Insurance Rates

Yes, how much you weigh plays an important role in your health.  

When it comes to weight and life insurance, a majority of life insurance companies look at BMI, or Body Mass Index, to calculate risk based on average weights based on your height.

The Center for Disease Control reports that more than one-third of Americans are considered obese.

This is an astonishing number but society has taken notice of this and, as a result, many people are changing their diets accordingly. Life insurance companies have taken notice too, they understand the health implications that can arise if someone is considered overweight or obese.

Diabetes, heart problems, and high blood pressure are just a few examples of health problems that can be caused by being overweight. Life insurance rates for obese and overweight people are often higher, and much higher with health complications resulting from their weight.

Some athletes have a higher BMI, and as a result, can be considered overweight or even obese when it comes to this quick weight analysis.

However, for people in fairly good health or better, a medical exam life insurance policy will be best for you anyways, in order to get the cheapest rates.

No medical exam life insurance exists, but this is mostly for people who are in poor health or need insurance very quickly. Much higher rates are associated with this type of life insurance as a result.

How Age Affects Life Insurance Rates 

When you apply for life insurance, insurance companies will attempt to determine your life expectancy – how long you are expected to live, given the information you provided.

Your life expectancy is calculated based on millions of data points that life insurance companies are able to compare.

Age has the greatest effects on the pricing of your policy because as your age increases so does your chances of passing away. Sad, but true.

This is why we recommend getting a life insurance policy while you are still young and in good health. So, what is the best age to purchase life insurance?

The optimal age to purchase life insurance is under 35. This is generally the age when people start a family and will have others depending on their income. Life insurance is best purchased when you are at low risk, and locking in rates at a young age is a great way to get insurance for your family at an affordable rate.

How Gender Affects Life Insurance Rates

Another characteristic that life insurance companies will look at when quoting you a price is your gender. Life insurance companies use statistical models to determine how long someone will be around.

Women live 5 years longer than men on average. As a result, women have lower life insurance premiums, because they can pay longer.

How much more expensive is life insurance for men?

Usually, men will experience 25-40% higher rates than women for life insurance, depending on age.

How Your Profession Affects Life Insurance Rates

Some professions put you at a higher life insurance risk than others. Some jobs that are considered to classify someone as a high risk individual are:

  • Police officers
  • Firefighters
  • Soldiers
  • Race car drivers
  • Astronauts
  • Pilots
  • Many more…

Unless your job is seriously dangerous, your profession probably does not affect your rate as much as you would think. Life insurance companies may add an additional fee to your policy that is subject to change as your position changes.

How Does Lifestyle Affect Life Insurance Rates?

Your occupation is only one portion of how risky your life is on a daily basis. Your lifestyle also helps determine your life insurance premiums.

Do you sit on the beach and read a book for fun? Or, are you an adrenaline junky who races speedboats, goes hang gliding, cliff dives, and goes mountain climbing?

The more dangerous of a lifestyle, the greater the opportunity for something to go wrong. Life insurance companies can see this as a liability which, in turn, would raise your premiums. If you do live life on the edge, there is a much greater benefit for having a life insurance policy.

How Your Driving Record Affects Your Life Insurance Rates

This may come as a surprise but your driving record is also taken into consideration when getting a quote for a life insurance policy. The average person spends 293 hours a year in a vehicle. That is 12 full days!

The road can be a dangerous place and the longer you are on the road, the higher the chance you have of getting into an accident. It’s just math.

Life insurance companies can access your driving record and see your past offenses of violated traffic laws. The last 3 to 5 years are weighted the heaviest, so it may be beneficial to keep a clean slate before you purchase a life insurance policy.

How Does Smoking Affect Your Life Insurance Rates?

Perhaps the factor that impacts life insurance rates the most, other than being terminally ill, is smoking. Smoking is a huge red flag in the life insurance industry because of the negative effects it has on your body.

Life insurance rates for smokers are often 2-5 times higher than for non-smokers.

Smoking can take years off of your lives. It is the leading cause of lung cancer and is responsible for 480,000 deaths per year. The average smoker in the United States dies 10 years earlier than the average nonsmoker.

Life insurance companies see how great a risk smoking is on your life, so they pass that risk along to you through your rates. Luckily for you, smoking is a habit that can be kicked. 

Smokers who quit can get their rates back down to only about 10-20% more expensive than non-smokers within the first year of quitting (barring any other health condition).

Those who have a policy and plan on quitting can also get reduced rates by re-taking your medical exam to get a reclassification for your medical risk. This also helps to reduce rates, though not every policy offers this.

Frequently Asked Questions About How Health Affects Life Insurance

As we stated earlier, the best time to  purchase life insurance is while you are young and in good health. Your personal health has an enormous effect on the rate of your policy because it directly correlates with how long you will live. It’s simple, the healthier you are the longer you will live.

Life insurance companies want to insure healthy people who are at a low risk of passing away early. 

Maybe you are not in the best shape of your life right now but you still need life insurance coverage. Do not worry, there are “no medical exam” life insurance policies that can cover you.

These policies tend to be more expensive but they are great to use for coverage while you making the climb to a healthy lifestyle.

Let’s get to commonly asked life insurance questions:

“Can’t I just lie about my health to get a better price?”

We highly recommend not lying to your life insurance company because once they find out (which they will) it can void your entire contract.

All of the money that you paid for the policy would be wasted and it would leave your family without this important coverage.

Life insurance companies have each applicant get a medical exam in order to verify all of the information submitted, as well as to determine any underlying medical conditions. Unless of course it is a no medical exam life insurance policy.

The medical exam can be done by a medical professional in the convenience of your own home. It generally takes thirty minutes to complete the exam. Twenty minutes allotted for the verbal questionnaire and ten minutes for the standard and basic sample collections.

The verbal questionnaire is done to get some background on your medical history. Life insurance companies will want to know the name, address and phone number of your primary care doctor so they can contact them for medical records, if needed. Questions range from your personal health history to that of your family’s.

What to Expect on Medical Exams for Life Insurance

It is good to be prepared for a medical exam for life insurance.

In medical exams for life insurance, you will first be asked a series of verbal questions, which typically include some of the ones listed below.

Frequently Asked Questions on Life Insurance Medical Exams

  • Are you routinely taking any medications?
  • Have you had any prior hospitalizations?
  • Do you suffer from any conditions like depression or anxiety?
  • Have you had any major previous procedures?
  • Does your family have a history of heart disease or cancer?

Once the verbal questionnaire is finished, the medical professional will begin the measurement procedures. Starting out with your basic measurements, they will measure your weight and height.

Once the initial measurements have been recorded, the medical professional will take a urine and/or blood sample to screen for several health indicators and conditions. Life insurance companies are looking for conditions such as HIV, AIDS, cholesterol levels, glucose levels, nicotine levels, and proteins.

Even though the sample is taken and the medical test is finished within thirty minutes, it typically takes about 1-3 months for a life insurance policy to be approved and in force. 

For those in need of quick life insurance coverage, there is accelerated underwriting life insurance policies such as guaranteed issue and simplified issue life insurance that can offer affordable life insurance protection in a quick time frame, usually under 2 weeks, and in some cases as quickly as 24 hours.

Can I Fail the Life Insurance Medical Exam?

The medical exam is not made for people to pass or fail. It is done so the life insurance company can determine how high of a risk you are for them to insure. If you are unhealthy you will not fail the exam but your rates will be higher because of it. 

However, if the information submitted on the original application does not match the data collected during the exam then you may be denied coverage or you may have to additional testing done.

Not only will living a healthy lifestyle save you money on your life insurance policy, it will keep you around your family longer. Take the time to make sure you are healthy before you get a quote from a life insurance company.

Article source: https://www.lifeinsure.com/health-affects-life-insurance/

Why You May Need Life Insurance After Retirement

You have worked almost your whole life and you are finally creeping up on retirement. You can practically smell the ocean and feel the sand in between your toes. But before you start celebrating all your hard work, you will want to make sure you have a plan for your retirement. Does this plan include owning life insurance after retirement?

Retiring is a great accomplishment and should be an enjoyable experience. That is why you need to plan out your retirement so there are no surprises.

Do you have people depending on your income?

Are you retiring with debt?

Will you still be working part-time through your retirement?

If you answered yes to any of these questions then we recommend purchasing a life insurance policy.

Now you may say, “I had life insurance through my work for all of these years, what happened to that?”

Does Your Work Cover Life Insurance Once You Are Retired?

Depending on your company’s coverage, the policy may terminate once you are finished working. In some cases, the coverage will extend for a period of time but slowly diminish.

Each situation is different so we advise you to speak with your employer about your benefits and how they coordinate with your retirement planning.

If you planned ahead and purchased an additional life insurance policy on top of the plan your employer offered to prepare for this situation, then you will still be covered by that policy.

If your policy does terminate once you retire and leave the company, then purchasing a life insurance policy may be on the to-do list before you retire.

How Much Does Life Insurance Cost for Retirees?

Life insurance company’s create the pricing for your policy based on how high of a risk they see your life.

They analyze your age, health, profession, lifestyle, and even your driving record. Each of these factors contributes to your lifespan.

Life insurance companies will want to know what type of lifestyle you live. If you live life on the edge it will cost more for them to insure you.

They will want to know about your health and medical history as diseases are a major cause of death.

However, the most heavily weighted factor besides health is your age. No one can live forever and the older you get the greater the chance of you dying becomes.

For this reason, it is typically cheaper to get a life insurance policy while you are young and in good health. Some experts recommend getting life insurance by the age of 35.

This is when most people start a family and have people depending on their income. For many individuals, retirement is a major goal, but is so far down the road most people don’t properly prepare for it.

For most Americans, retirement comes between the ages of 60 to 65. With the average life expectancy of 78, you can assume how expensive it will be to get life insurance coverage.

Although it is not cost effective to wait until retirement to purchase a life insurance policy, it can still be done.

Is Life Insurance for Seniors Worth the Cost?

If you retire debt free and are capable of living off your savings, you may not have a need for life insurance.

However, if you retire but still have debt, a part-time job, and people depending on your income, life insurance is a must.

Most people have been dreaming of drinking pina coladas on the beach after retirement since they were 30.

Although this does sound amazing, sitting on the beach everyday drinking can get boring after a while. This is why almost 30% of retirees work part-time.

If you are working part-time to do a job you have always been curious about then you may not need life insurance.

But if you are working part-time because you have people depending on your paycheck, then you should purchase a life insurance policy.

If you pass away and the checks stop coming in how would your family make ends meet? Life insurance covers you in these situations so you do not have to lose sleep.

Do I Need Life Insurance if I Have A Pension?

People in some professions are lucky enough to get a pension once they retire. This provides families with a portion of their annual salary for years to come.

A pension can be collected in one lump sum or an income option. Receiving your pension in one lump sum gives you all of the money up front once you retire.

This can be beneficial if you do not need the money right away so you can roll it into an IRA without paying taxes.

The income option offered to pension holders stretches these payments over a period of time to keep cash flow.

You pay taxes on every monthly check you get but this option is more common because it is more secure.

Pensions are an incredible benefit offered by companies to help make retirement easier for those who have worked hard.

However, if you retire with your pension and your receiving payment annually your spouse or beneficiaries may only be entitled to a portion of the payment if you die.

Life insurance can be a good backup to replace this shortage of income just to be safe. That is why you want to identify all of the people depending on your income.

Reasons Why Retirees Need Life Insurance

Providing Financial Security for Your Family

Every family’s situation is different. Some parents retire with their children still living at home while others help out their children financially after they move out.

A common theme among parents is to cosign a big purchase. These can range anywhere from a new car, a house, or even student loans.

This gesture helps get their children approved for such actions but also puts their own well-being at risk. You will want to ensure that your child is more than capable of paying off such debts so they default on them if you pass away.

A life insurance policy helps cover this type of situation. Providing the funds that can cover these types of payments, so your children do not have to stress over these situations.

A life insurance policy will help loved ones get through a tough time because they will be better off financially.

If you still have children living at home who depend on your income it is important to have a plan in place if something were to happen.

The last thing you want in a time of grieving is a financial problem for your loved ones. Life insurance is all about keeping your loved ones protected once you can no longer protect them.

Covering the Costs of Remaining Debts

Being in debt is another major reason to purchase a life insurance policy. Retiring without having your mortgage paid off is more common than you think.

A lot of people like to settle down somewhere nice when they retire which usually involves purchasing a new home. This is why more than one in three homeowners over the age of 65 are still making mortgage payments.

Paying off your mortgage before you retire should be taken very seriously. This is typically the largest purchases someone makes in their lifetime.

Still having to pay this off without having a steady income can be a terrible blow to your retirement savings.

We strongly advise speaking with a financial adviser to develop a plan to get your finances in order before you retire.

You need to keep in mind how your family would pay off such debts if you were to pass away. Leaving a burden like a mortgage payment is not something you should leave behind for your loved ones to deal with.

A life insurance policy can provide your loved ones with the funds they need to eliminate this payment.

Helping Your Family Handle Your Estate

From funeral arrangements to estate and inheritance taxes, life insurance is a great way to make sure that those you leave behind have enough to handle the costs of your passing.

Estate planning needs to be meticulous, as it hasan exorbitant amount of loopholes and guidelines to adhere to.  When it comes to estate planning, we highly recommend speaking with a professional.

Funerals can cost anywhere from $10,000 to $20,000, and if you leave no liquid assets behind, your family might have to go through the hassle of sorting through and selling your non-liquid assets (property, stocks, jewelry etc.) which can put a lot of unnecessary strain on your already grieving loved ones.

No matter what, it’s a good idea to take a serious look at your expenses before canceling a policy. If you do cancel and then discover that it’s still in your best interest to have a life insurance policy, you most probably won’t be able to recover your policy at your previous rate.

Consult a life insurance professional at Intramark today to find out if a post-retirement policy is right for you. You can also get started with an instant life insurance quote today.

What Types of Life Insurance Are Best for Retirees?

To go into depth about the best types of life insurance for retirees would take very long, and not really fit in very well with the theme of this article.

However, to help you get started on your research, the table below shows some popular life insurance policies among seniors, some benefits they have, and what companies are the best providers for those policies.

 

Policy
Description
Our Favorite Companies

Term Life Insurance
Generally speaking, term life insurance becomes more expensive as you get older. Terms are usually available for 10-30 years in 5 year increments, but most life insurance providers only offer term life coverage through age 75. A few providers (like Mutual of Omaha) offer term life insurance coverage through age 85, and even 95.

  • American General
  • Banner Life
  • Lincoln Financial
  • Mutual of Omaha
  • Principal
  • Prudential

Permanent Life Insurance
Permanent life insurance offers permanent life coverage (until you die, or reach age 100 or 122 in most cases, depending on the company). These policies can be broken down into many subtypes that each offer cash value accumulation, investment components, and varying types of premiums.

  • American General
  • Guardian Life
  • John Hancock
  • Lincoln Financial
  • Pacific Life
  • Prudential

Guaranteed Issue Life Insurance
This type of life insurance is best for people who need life insurance quickly, or who are otherwise uninsurable because they are a very high risk. This type of insurance usually has limited coverage ($5,000 – $25,000, with some companies going as high as $100,000). No medical exam and no health questions are required, everyone qualifies for coverage.

  • AIG
  • Gerber Life

Simplified Issue Life Insurance
This type of life insurance is a step up from guaranteed issue. It is also a type of no medical exam life insurance policy, but there are some health-related questions asked to assess risk and make sure the applicant is insurable. This coverage is also usually limited to the same amounts as guaranteed issue, and the waiting time for approval can be a bit longer. Naturally, simplified issue life insurance rates for seniors are more affordable than guaranteed issue.

  • Assurity
  • Fidelity Life
  • Foresters
  • Mutual of Omaha
  • Phoenix

Joint Life Insurance
This type of life insurance policy covers both spouses with the same coverage under one policy, for one monthly premium. Both term and whole life policies are available. There is second to die life insurance which provides a death benefit upon the death of the second spouse, and first to die life insurance which provides a death benefit upon the death of the first spouse.

  • American General
  • John Hancock
  • Lincoln Life
  • Principal Life
  • Prudential

Final Expense Insurance
Fional expense insurance is meant to cover the immediate costs after your death such as funeral expenses and remaining debts. This can come in the form of guaranteed or simplified issue life insurance, which are both often called burial insurance. These policies have no medical exam and usually go up to $50,000 in coverage, with some companies offering even more burial insurance coverage for seniors.

  • AIG
  • Foresters
  • Gerber Life
  • Mutual of Omaha
  • Phoenix Life
  • Transamerica

Feel free to follow any of the links in the chart to learn more about the various types of life insurance for retirees, and the life insurance companies we have listed.

Finding the Best Life Insurance Rates for Retirees

When it comes to answering the question , Do I need life insurance now that I am retired?, you want to take the time to consider a number of factors such, as who is dependent on your income, and what type of debts you have remaining.

Due to the large investment that life insurance is, and the amount of options on the market, you want to be sure that the life insurance policy you choose is the best for you and your family.

The easiest way to ensure that you are choosing the best life insurance coverage as a retiree is to speak with an independent life insurance agent who can compare rates and policies from dozens of companies at once.

Our agents work with each client directly to identify their specific needs and help them find a policy which best suits them.  Give us a call today, or get instant life insurance quotes for retirees by using our online quoting engine!

compare the best life insurance rates

Article source: https://www.lifeinsure.com/life-insurance-after-retirement/

Why You May Need Life Insurance After Retirement

You have worked almost your whole life and you are finally creeping up on retirement. You can practically smell the ocean and feel the sand in between your toes. But before you start celebrating all your hard work, you will want to make sure you have a plan for your retirement. Does this plan include owning life insurance after retirement?

Retiring is a great accomplishment and should be an enjoyable experience. That is why you need to plan out your retirement so there are no surprises.

Do you have people depending on your income?

Are you retiring with debt?

Will you still be working part-time through your retirement?

If you answered yes to any of these questions then we recommend purchasing a life insurance policy.

Now you may say, “I had life insurance through my work for all of these years, what happened to that?”

Does Your Work Cover Life Insurance Once You Are Retired?

Depending on your company’s coverage, the policy may terminate once you are finished working. In some cases, the coverage will extend for a period of time but slowly diminish.

Each situation is different so we advise you to speak with your employer about your benefits and how they coordinate with your retirement planning.

If you planned ahead and purchased an additional life insurance policy on top of the plan your employer offered to prepare for this situation, then you will still be covered by that policy.

If your policy does terminate once you retire and leave the company, then purchasing a life insurance policy may be on the to-do list before you retire.

How Much Does Life Insurance Cost for Retirees?

Life insurance company’s create the pricing for your policy based on how high of a risk they see your life.

They analyze your age, health, profession, lifestyle, and even your driving record. Each of these factors contributes to your lifespan.

Life insurance companies will want to know what type of lifestyle you live. If you live life on the edge it will cost more for them to insure you.

They will want to know about your health and medical history as diseases are a major cause of death.

However, the most heavily weighted factor besides health is your age. No one can live forever and the older you get the greater the chance of you dying becomes.

For this reason, it is typically cheaper to get a life insurance policy while you are young and in good health. Some experts recommend getting life insurance by the age of 35.

This is when most people start a family and have people depending on their income. For many individuals, retirement is a major goal, but is so far down the road most people don’t properly prepare for it.

For most Americans, retirement comes between the ages of 60 to 65. With the average life expectancy of 78, you can assume how expensive it will be to get life insurance coverage.

Although it is not cost effective to wait until retirement to purchase a life insurance policy, it can still be done.

Is Life Insurance for Seniors Worth the Cost?

If you retire debt free and are capable of living off your savings, you may not have a need for life insurance.

However, if you retire but still have debt, a part-time job, and people depending on your income, life insurance is a must.

Most people have been dreaming of drinking pina coladas on the beach after retirement since they were 30.

Although this does sound amazing, sitting on the beach everyday drinking can get boring after a while. This is why almost 30% of retirees work part-time.

If you are working part-time to do a job you have always been curious about then you may not need life insurance.

But if you are working part-time because you have people depending on your paycheck, then you should purchase a life insurance policy.

If you pass away and the checks stop coming in how would your family make ends meet? Life insurance covers you in these situations so you do not have to lose sleep.

Do I Need Life Insurance if I Have A Pension?

People in some professions are lucky enough to get a pension once they retire. This provides families with a portion of their annual salary for years to come.

A pension can be collected in one lump sum or an income option. Receiving your pension in one lump sum gives you all of the money up front once you retire.

This can be beneficial if you do not need the money right away so you can roll it into an IRA without paying taxes.

The income option offered to pension holders stretches these payments over a period of time to keep cash flow.

You pay taxes on every monthly check you get but this option is more common because it is more secure.

Pensions are an incredible benefit offered by companies to help make retirement easier for those who have worked hard.

However, if you retire with your pension and your receiving payment annually your spouse or beneficiaries may only be entitled to a portion of the payment if you die.

Life insurance can be a good backup to replace this shortage of income just to be safe. That is why you want to identify all of the people depending on your income.

Reasons Why Retirees Need Life Insurance

Providing Financial Security for Your Family

Every family’s situation is different. Some parents retire with their children still living at home while others help out their children financially after they move out.

A common theme among parents is to cosign a big purchase. These can range anywhere from a new car, a house, or even student loans.

This gesture helps get their children approved for such actions but also puts their own well-being at risk. You will want to ensure that your child is more than capable of paying off such debts so they default on them if you pass away.

A life insurance policy helps cover this type of situation. Providing the funds that can cover these types of payments, so your children do not have to stress over these situations.

A life insurance policy will help loved ones get through a tough time because they will be better off financially.

If you still have children living at home who depend on your income it is important to have a plan in place if something were to happen.

The last thing you want in a time of grieving is a financial problem for your loved ones. Life insurance is all about keeping your loved ones protected once you can no longer protect them.

Covering the Costs of Remaining Debts

Being in debt is another major reason to purchase a life insurance policy. Retiring without having your mortgage paid off is more common than you think.

A lot of people like to settle down somewhere nice when they retire which usually involves purchasing a new home. This is why more than one in three homeowners over the age of 65 are still making mortgage payments.

Paying off your mortgage before you retire should be taken very seriously. This is typically the largest purchases someone makes in their lifetime.

Still having to pay this off without having a steady income can be a terrible blow to your retirement savings.

We strongly advise speaking with a financial adviser to develop a plan to get your finances in order before you retire.

You need to keep in mind how your family would pay off such debts if you were to pass away. Leaving a burden like a mortgage payment is not something you should leave behind for your loved ones to deal with.

A life insurance policy can provide your loved ones with the funds they need to eliminate this payment.

Helping Your Family Handle Your Estate

From funeral arrangements to estate and inheritance taxes, life insurance is a great way to make sure that those you leave behind have enough to handle the costs of your passing.

Estate planning needs to be meticulous, as it hasan exorbitant amount of loopholes and guidelines to adhere to.  When it comes to estate planning, we highly recommend speaking with a professional.

Funerals can cost anywhere from $10,000 to $20,000, and if you leave no liquid assets behind, your family might have to go through the hassle of sorting through and selling your non-liquid assets (property, stocks, jewelry etc.) which can put a lot of unnecessary strain on your already grieving loved ones.

No matter what, it’s a good idea to take a serious look at your expenses before canceling a policy. If you do cancel and then discover that it’s still in your best interest to have a life insurance policy, you most probably won’t be able to recover your policy at your previous rate.

Consult a life insurance professional at Intramark today to find out if a post-retirement policy is right for you. You can also get started with an instant life insurance quote today.

What Types of Life Insurance Are Best for Retirees?

To go into depth about the best types of life insurance for retirees would take very long, and not really fit in very well with the theme of this article.

However, to help you get started on your research, the table below shows some popular life insurance policies among seniors, some benefits they have, and what companies are the best providers for those policies.

 

Policy
Description
Our Favorite Companies

Term Life Insurance
Generally speaking, term life insurance becomes more expensive as you get older. Terms are usually available for 10-30 years in 5 year increments, but most life insurance providers only offer term life coverage through age 75. A few providers (like Mutual of Omaha) offer term life insurance coverage through age 85, and even 95.

  • American General
  • Banner Life
  • Lincoln Financial
  • Mutual of Omaha
  • Principal
  • Prudential

Permanent Life Insurance
Permanent life insurance offers permanent life coverage (until you die, or reach age 100 or 122 in most cases, depending on the company). These policies can be broken down into many subtypes that each offer cash value accumulation, investment components, and varying types of premiums.

  • American General
  • Guardian Life
  • John Hancock
  • Lincoln Financial
  • Pacific Life
  • Prudential

Guaranteed Issue Life Insurance
This type of life insurance is best for people who need life insurance quickly, or who are otherwise uninsurable because they are a very high risk. This type of insurance usually has limited coverage ($5,000 – $25,000, with some companies going as high as $100,000). No medical exam and no health questions are required, everyone qualifies for coverage.

  • AIG
  • Gerber Life

Simplified Issue Life Insurance
This type of life insurance is a step up from guaranteed issue. It is also a type of no medical exam life insurance policy, but there are some health-related questions asked to assess risk and make sure the applicant is insurable. This coverage is also usually limited to the same amounts as guaranteed issue, and the waiting time for approval can be a bit longer. Naturally, simplified issue life insurance rates for seniors are more affordable than guaranteed issue.

  • Assurity
  • Fidelity Life
  • Foresters
  • Mutual of Omaha
  • Phoenix

Joint Life Insurance
This type of life insurance policy covers both spouses with the same coverage under one policy, for one monthly premium. Both term and whole life policies are available. There is second to die life insurance which provides a death benefit upon the death of the second spouse, and first to die life insurance which provides a death benefit upon the death of the first spouse.

  • American General
  • John Hancock
  • Lincoln Life
  • Principal Life
  • Prudential

Final Expense Insurance
Fional expense insurance is meant to cover the immediate costs after your death such as funeral expenses and remaining debts. This can come in the form of guaranteed or simplified issue life insurance, which are both often called burial insurance. These policies have no medical exam and usually go up to $50,000 in coverage, with some companies offering even more burial insurance coverage for seniors.

  • AIG
  • Foresters
  • Gerber Life
  • Mutual of Omaha
  • Phoenix Life
  • Transamerica

Feel free to follow any of the links in the chart to learn more about the various types of life insurance for retirees, and the life insurance companies we have listed.

Finding the Best Life Insurance Rates for Retirees

When it comes to answering the question , Do I need life insurance now that I am retired?, you want to take the time to consider a number of factors such, as who is dependent on your income, and what type of debts you have remaining.

Due to the large investment that life insurance is, and the amount of options on the market, you want to be sure that the life insurance policy you choose is the best for you and your family.

The easiest way to ensure that you are choosing the best life insurance coverage as a retiree is to speak with an independent life insurance agent who can compare rates and policies from dozens of companies at once.

Our agents work with each client directly to identify their specific needs and help them find a policy which best suits them.  Give us a call today, or get instant life insurance quotes for retirees by using our online quoting engine!

compare the best life insurance rates

Article source: https://www.lifeinsure.com/life-insurance-after-retirement/

What to Do When Your Term Life Insurance Policy Runs Out

“All good things must come to an end.”

Fortunately, this doesn’t apply to modern day term life insurance policies!

While some analysts suggest that you won’t need insurance after a 20-year term. They may try to convince you that your children will be grown and you will have accumulated enough savings in cash and investment to support your spouse if you die prematurely.

Yes, in theory, it sounds like quite the plan. But it is important to understand that only a few people will have such a defined, and hassle-free life path.

What is term life insurance?

If you already have term life insurance, skip this brief section.

Term life insurance is life insurance that lasts for – you guessed it – a term.

This term can be 10 to 30 years, and they are usually offered in 5 year increments.

Term life insurance offers affordable life insurance coverage for people who need it.

But there is one problem with term life insurance: it expires!

What Happens When My Term Life Insurance Policy Runs Out?

Alright, let’s answer the big question.

When people buy term life insurance, they rarely give much thought to what would happen when their term runs out.

What Does Expiration in Term Life Insurance Mean?

Expiration in Term Life Insurance is a little different from the conventional meaning of “expiration”.

When your policy reaches the end of its term, your policy won’t just end.

This is where it gets interesting.

If you look into the details of your policy, there is a table that shows the cost on a year to year basis. This table that shows the yearly cost is usually called a rate or premium illustration.

For example, if you purchased a 20-year policy, you will notice a relatively higher price increase on the 21st year after your 20-year term has expired. The cost after the 20th year will continue to increase significantly, year after year.

WARNING:

Term life insurance does not “expire” once your term is through.  Instead, premiums go up drastically on a yearly basis until you either cancel the policy or open a new policy.

Now, you can put a stop to this if you no longer want the policy beyond the low-cost guarantee period.

What Should I do to Convert or Cancel My Policy?

You can contact the insurance company that you want to cancel the policy at the end of the term. If you wait to see it out, you will continue to get debited without warning.

Some people switch to paper check payments after the expiration of their policy to avoid the risk of getting their checking accounts debited.

One thing to note is that your policy is not actually expiring. Most policies will cover you until you the age of 95.

Your rate will only continue to increase rapidly at the end of each term (year, quarterly, or biannually or monthly), often to a point where the coverage is no longer worth the premium you will dole out.

The Relationship Between Term Life Insurance, Increasing Premiums, ART

First and foremost, let’s get this out of the way -Every year you live makes you a little more of an insurance risk to insurance providers.

When you buy an annual renewable term policy, your premiums will rise annually.

This kind of policy is known as an Annual renewable term (ART).

ART premiums might look like this for the first few years:

  • The 1st year might be $340
  • $465 in the 2nd year
  • $475 in the 3rd year

Ten years down the line, your premium may climb to $650 per month for coverage! This simple example illustrates why people tend to shy away from Annual Renewable Term.

Because of the low demand for ART, Many Insurance providers offer level term Insurance policy. They can cover you until age 95 but at a fixed premium rate for 10, 15, 20, or 30 years

Calculating Level Term Premium – It’s a Simple Average

To determine your level premium, life insurance providers add up the payments for each year in the 20-year term and divide it by 20.

In most cases, 20-year level term life insurance is the average premium for the first 20 years of coverage.

From the 21st year and above, it reverts to an annual renewable policy (ART).

What to Do When Your Term Life Insurance Policy Expires?

1. Shop for a New Term Life Insurance Policy

If your state of health is rock solid or relatively good enough, it is time to shop for a new level term insurance. Yes, you will have to pass a medical exam in most cases and pay the standard amount for an individual within your age range. You may not need as large a policy as the first one you purchased when you were much younger. This means the price will not be overwhelming.

Hold on to your wallet and look for another insurer who may be offering something cheaper. If you’re shopping around for rates for a new policy, be sure to consider one with Low Renewal Premiums!

A good source for doing your comparison analysis shop is our online term life insurance quote tool.  You can find this at the bottom of this post on mobile, or on the right for desktop.

2. Converting Term Policy to Permanent Insurance

If you have a poor health condition, much older (usually and do not want to undergo any form of medical examination, you can convert your existing term policy to permanent insurance.

Your insurance company will offer you different conversion policies to choose from. Converting to permanent insurance plus your health state means you will pay much more than when you were paying for term life insurance (Depending on your insurer, it is usually about 2-3 times the cost of your current premium).

The good part is you can control the cost by purchasing a smaller policy. This is a good fit, since you are older and don’t need many years of coverages as you once did.

Time is of the essence. You must convert within the period the term policy allows you to. Some insurance providers keep the conversion window open for only 10 years if you had purchased a 20-year policy.

It is also important not to convert too early. Always stay updated on the details of your policy and check with your agent to be sure you are getting the best coverage at the time.

3. Renewing or Extending Your Expired Term Life Insurance

If you are in a poor state of health and happened to miss the deadline for converting to permanent insurance, there is still an option for you – a rather costlier option.

You can renew your about-to-expire coverage without undergoing a medical examination. You will only have to pay much higher premiums and they will keep increasing geometrically, year after year.

This option is decent enough if you only need a few years, over 70, or have medical conditions that make it hard to get a new policy.

You probably won’t be able to sustain the cost of the policy for very long.

Think about future coverage well enough before the expiration of your term. If you think you won’t be able to pass a medical examination, you can convert your term policy to cash-value coverage while you still can.

Can I still get coverage with a health issue? 

Yes, no medical exam life insurance is recommended for people who are older, or who have a medical condition.

4. Decrease Your Death Benefit

Many insurance providers will allow a one-time decrease in face value to your life term policy. The result is a noticeable reduction in your premiums.

5. Sell Your Policy

If your policy is still convertible, you may be able to convert the policy and then sell it.  It’s called a life settlement. It is important to identify when selling your life term policy is a viable option and when you might be getting shortchanged.

Before you jump into a life insurance settlement deal, you will have to come to terms with the fact that a third party will own insurance on your life and profit from it when you die (no benefits for your family after death).

Also, some individuals are better candidates for a life insurance settlement than others. For example; Having a term life insurance policy or a universal life policy with a face value over of over $200,000 makes your policy more attractive to investors. You are more likely going to receive a worthy offer.

Can You Sell Your Term Life Policy?

Yes, you can sell your Term Life Policy.

A life insurance settlement involves the assured and another entity (usually an investor). The buyer or investor becomes the owner of the policy, settles the premium payments and will receive the death benefits in the event of death.

A life insurance settlement (also known as a viatical settlement) allows you to receive more money than you would have received from the insurer if you canceled or forfeited the policy but less than the coverage value/death benefit of the policy.

Selling a life insurance policy is a good way to get immediate cash for retirement, health bills or unforeseen heavy expenses. However, it is not always the easiest or best option to raise quick cash at your point of need.

Finding a buyer for your life settlement involves a bit of documentation.

You can do this on your own or use a life settlement broker to look for prospective offers to purchase your life term policy.

You will be asked to provide medical records and your term life policy documents to the potential investor. The settlement provider(s) will make you an offer after reviewing your files based on a range of factors such as:

  • Your age and health
  • The type of policy you have
  • The cash surrender value (accumulated cash value) of the policy
  • Amount of premiums

If you are much older or in a poor health state, you will receive a better cash offer as the face value of your policy is worth more to investors or settlement companies as they are going to sense an avenue to make some profit.

What Happens When My Term Life Insurance Runs Out – Takeaways

Even though your term period has “expired”, your policy may still have value to you. If you find that you still need life insurance protection at this point, you do have options for extending your term life insurance policy, converting or renewing, selling the coverage.

It is important to stay informed as making the wrong decision can cost you a fortune. Give us a call today, and we can review your policy and go over your options with you.

Or, use our term life insurance quote tool to compare some of the best term life insurance rates for a new policy!

compare the best life insurance rates

Article source: https://www.lifeinsure.com/happens-term-life-insurance-policy-ends/

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