Category Archives: Insurance

Can You Get Life Insurance if You’re Pregnant?

When you become pregnant, you begin thinking about the world in a different way. Your whole world will soon change forever, and you want to ensure that your child is able to live in a safe environment.  This includes your financial environment.

Often times, we have people ask us the question of: “Can I get life insurance if I am pregnant?” I wanted to take the time to answer this question in depth in order to give pregnant women and their significant others insight into the life insurance coverage options for pregnant women and to protect your young family.

This article helps to answer some frequently asked questions about life insurance for pregnant women.

Common Questions About Life Insurance for Pregnant Women

Can You Get Life Insurance if You Are Pregnant?

Yes. Life insurance companies will not turn you away because you are pregnant. Pregnant women looking for life insurance is not as uncommon as you may think, and thanks to modern technology, pregnancy is not as dangerous as it once was.

Does Being Pregnant Affect Life My Life Insurance Rates?

In most cases, being pregnant typically doesn’t even change the rates you are offered.

The main reason is that your costs are based on your health—specifically things that are going to decrease the longevity of your lifespan. These include heart diseases, smoking, diabetes, etc… Pregnancy does not fall under this category.

However, most insurance companies won’t offer coverage once you pregnancy enters the third trimester.  Also, your pregnancy weight gain might affect your rates so, for that reason, it might make sense to wait.

Should Pregnant Women Get Life Insurance?

It is easy to understand how life insurance becomes a thought once you are pregnant.  You are turning a new leaf and will now need to be more responsible than you have ever been in your life.

As parents having children, it is important to have life insurance for a couple of reasons:

6 Reasons Pregnant Women Should Get Life Insurance 

1. Protect Your Income

If you are pregnant, very shortly you will have your first dependent on your income. Overall, your child depends on your income in order to survive, even for a few years until they are able to fend for themselves.

You want to be able to ensure that your child will have income replacement in the event that you are unable to work, or gone. While it is not something pleasant to think about, it is an important thing to plan for. Life insurance helps you to do this.

2. Life Insurance for Your Child

As a parent also have the option insure your child. While it is tragic to think about, if your child needs medical care, or tragically pass away, this can cause financial turmoil on top of the emotional pain.

You can protect your child while they are young with a policy that is paid for in full and turned over to them when they are an adult. This is sometimes offered as a rider on term and permanent life insurance policies, and can also be purchased separately as its own policy.

3. Cover Debts 

Life insurance also serves as a way to protect your loved ones from inheriting your debt in the event of your death.

Mortgage payments, car loans, outstanding credit card debt, etc… all accounts for this debt. As you plan a family and your family grows, you will likely go through a stage where you accumulate more debt, before your income eventually allows you to chip away at it as you approach retirement.

4. Plan for College

Life insurance can be used as a tool to help plan for college for your child. Life insurance policies for children can be taken out which eventually build cash value and can be handed off to children once they become adults, which in the life insurance world can be between the ages of 18 and 25 (per policy).

With the cost of college increasing every year, life insurance is perfect for pregnant women who plan on sending their children to college.

5. Lock in Low Rates Young

Your age is one of the main factors affecting life insurance rates. When you get pregnant is a great time to get life insurance because you now have more of a need for it than ever before, and you are as young as you will ever be.

If you are in your 20’s, 30’s, or even 40’s and are in good health, and are a non-smoker, you will likely be able to secure very low life insurance rates to protect your young family.

6. Peace of Mind

Despite the fact that this is hard to quantify, peace of mind is one of the greatest things that life insurance provides, especially when you are pregnant, or have a young child.

Life insurance helps give pregnant women and new parents the peace of mind of knowing that their child is protected financially in the event of their death.

Can You Get Life Insurance Coverage for Your Baby if You’re Pregnant?

If you take out a life insurance policy while pregnant, you can certainly find one that gives you a rider, or special feature, to add your children to the insurance policy you already have.

In these cases though, you must wait until the child is born in order to add them. They can typically get coverage until they turn 18. Now, your coverage is probably going to be enough for them, but this is still something to consider.

How Much Coverage Do I Need?

In order to figure out how much coverage you need with your life insurance, start by gathering any important personal financial information that you have so that you can figure out your current income and your debts versus your assets.

After that estimate what your burial cost will be and how much money your family or your business will need in your absence. As someone who is pregnant, you need to consider the number of years your unborn child will need coverage, and what the average costs of that coverage for your area.

When figuring out how much life insurance coverage you need as a pregnant woman, you want to think about these 3 factors.

3 Tips to Determine How Much Life Insurance Coverage You Need 

1. Calculate Your Annual Income and Multiply 15-20

As a pregnant mother, you will now be accepting financial support of your child for the first 18 years of their life. On top of that, you may want to plan for college for your child. This should also be factored into the type of life insurance policy you take out as a new parent.

2. Plan For College 

Planning for college is not easy, it’s also not cheap. This is something you want to begin planning for as soon as possible to give your child the best financial resources to follow their aspirations in college if they choose to go. Life insurance is a great way to do this.

3. Factor in Existing Debt 

Like it or not, you probably have debt. As Americans, we each account for an average of nearly $70,000 in debt per person. Wherever your debt stands in relation to this, chances are, you do have debt, no matter the amount.

When considering how much life insurance is right for you while pregnant, you will want to account for your debt in order to financially protect your family.

What Types of Life Insurance Policies Can I Get if I’m Pregnant?

There are generally two categories of life insurance from which to choose: permanent or term.

Permanent Life Insurance

Permanent life insurance includes universal and whole life insurance as well as other types of policies.  This type of life insurance coverage lasts your whole life (usually through age 101, 112, or 121).

These policies may accumulate cash value on a tax-deferred basis which you can use while you are still alive. This means that the money you put into your policy builds cash value, which is cash that you can borrow without having to pay taxes or interest on it.

This policy is designed to have a level premium with a guaranteed death benefit. It accumulates cash value that you can use to help meet any living needs like buying a house, funding your emergency situations, cover college expenses, or adding to your retirement.

Permanent life insurance can take  variety of forms, such as:

  • Universal Life
  • Whole Life
  • Variable Life
  • Indexed Universal Life
  • Etc…

All these types of permanent life insurance policies vary in terms of premiums and cash value accumulation. Speak with an agent to learn more today.

The premiums for permanent life insurance are very high compared to term life insurance. For most people, term is best because it offers protection that can be layered in order to provide income protection and debt relief dynamically as life develops.

You should consider a permanent life insurance policy if:
  • You have long-term financial needs
  • You like flexibility with your premium payments and your death benefits
  • You want a policy that accumulates tax-deferred cash value

Term Life Insurance

Term life insurance will protect you for a specific amount of time, ranging between one and thirty years. It will only pay out the death benefit if you pass away during that time. It is considered a temporary form of life insurance.

Short term, it gives you the greatest level of protection for the lowest premium possible. Therefore, if you are on a tight budget this can be a great, cost-effective solution. If you know that your financial responsibilities will decrease with time, it might also be a wonderful way to free up your funds.

One of the drawbacks to selecting a term policy is that you never get any of that money back unless you pick a Return of Premium policy or policy rider, and your coverage expires when the term does. Whereas permanent life insurance accumulates cash value over time on top of your life long protection.

You should consider term coverage if:
  • You have a temporary financial need
  • You need large coverage on a tight budget
  • You want to use it for specific business needs like executive benefits

How Does Life Insurance Pregnant Women Cost?

The cost of your life insurance policy, regardless of how far along you are in your pregnancy or if you are trying to become pregnant, is going to be based primarily on your age, gender, and health. It will also be based on a how much coverage you want and how long the policy is—either term wise or permanent.

As a healthy, pregnant female, your sample rates for the preferred health category are as follows:

How Do I Find the Best Life Insurance Rates for Pregnant Women?

Different companies charge different rates. So, you need to do some homework on the rates available – get quotes from many companies. Talk to a broker or third party to compare the rates based on your situation.

Give us a call today to speak to an independent life insurance agent who can help you compare life insurance policies from dozens of the best life insurance companies for pregnant women.

They will work with you to determine how much coverage you need, what your budget is, and whether term or permanent is the solution. They can even work with you to discuss riders that can help get life insurance coverage for your children.

compare the best life insurance rates

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

Term Life Insurance | The Ultimate Guide

Term life insurance policies are easy to understand and do not cost as much as a permanent whole life insurance policy. 

Term Life insurance typically comes in 10, 15, 20, 25, and 30 year terms. This means when you reach the end of your policy’s term, you will need to either look for another life insurance option or renew the term for a much higher premium.

What is Term Life Insurance?

 

Term life insurance is often called “pure life insurance” or “temporary life insurance” because it’s intended only to protect your dependents in case you pass away during the term period.

A term life insurance policy is strictly meant to pay your beneficiaries if you die during the policy’s term.

You may be thinking “Isn’t that what a life insurance policy is supposed to do”?

Yes and no.

Other types of life insurance policies offer additional values that most term life insurance policies do not such as building cash value.

What Types of Term Life Insurance are There?

getting life insurance?

 

There are two basic types of term life insurance policies: level term and decreasing term.

Level term means the death benefit (aka “face amount”) will stay the same throughout the length of the policy.

Decreasing term means that the death benefit amount will drop, usually in one-year increments, over the course of the policy’s term.

For term life insurance policies, the premium will usually stay the same throughout the entire term.

Common types of level term are:

    • Annually renewable term
    • 5-year renewable term
    • 10-year term
    • 15-year term
    • 20-year term (Most popular term)
    • 25-year term
    • 30-year term

    • Term to a specified age (usually 65)

It’s important to note that most life insurance companies will not sell term insurance to an applicant for a term that will end past his/her 80th birthday.

Is Term Life Insurance Right for Me?

So how do you know what term length you should purchase? Here are a few guidelines to keep in mind when looking to buy a term life insurance policy:

    • Choose a term that coincides with the years you’ll be paying large bills such as your mortgage, car note, business loans, student loans, and children’s education. Remember, just because you are deceased does not mean the bills go away. 

    • Buy an amount that would replace your income. Will your family need one year of your income to continue meeting regular expenses? Or will they need two years? Five years? Factor this amount of time into your decision.

As far as term life insurance premiums go, you lock in the premium for your age and health at the time of the application.

What Should I Do if My Term Life Insurance Policy Expires?

Term or Whole Life?

 

So you purchased your term life insurance policy for 10 years. The decade has flown by and now your term is up.

What happens next?

Well, that outcome is specific to the term life insurer and the way your particular policy is written.

There are a few different options.

If you have a renewable term life insurance plan, the coverage can be renewed annually (up to a specific age) with an increase in premium every year.

If you have a term policy that is convertible then you, as the policy owner, have the right to convert the policy into a permanent life insurance plan without additional evidence of insurability.

How Do Premiums Work on a Term Life Insurance Policy?

You may also be wondering what happened to all that premium you paid for the last 10 years. Your premiums on a term life insurance policy bought you protection during your term period.

Your premiums will not be refunded when your term ends. In the same way that auto or homeowner’s insurance works, the life insurer figures they provided protection to you that you needed for all those years but you just didn’t use it.

If you had a death claim then they would have willingly paid to your beneficiary the death benefit. Some insureds do not appreciate this term life insurance concept.

For that reason, a few life insurers have created term life insurance policies with a Return of Premium (ROP) rider because of insured complaints. The premiums for ROP term life insurance policies are usually much higher than policies without this feature. You also must keep the policy in effect and current until its term ends to avoid forfeiting the premium benefit.

Always review the fine print on your term life insurance policy so you understand how your specific term life insurance coverage works.

Can I Renew My Term Life Insurance Policy?

final expense life insurance


Let’s say your term is coming to an end and you can’t decide what to do next. Many people will convert the term life policy into a permanent life insurance policy.

If you aren’t able to do so (or don’t want to do so), then there may be a few other ways to renew your existing term life insurance policy without paying a huge premium increase.

 Have you lost a lot of weight? Stopped smoking? Or have you gotten your Type 2 diabetes under control and no longer need the metformin pills? 

If you have improved your health since you originally purchased the term life insurance policy then you should check with your insurance agent or life insurer to find out if you can do a “health re-classification”.

Many carriers allow an insured one opportunity to submit an application in which the insured will be re-classified based on his/her current health. This can lead to a really nice reduction in premium.

Many term life insurance companies will allow an insured to reduce their death benefit one time.

You can do this when the term is coming to an end and avoid the high renewal premiums. Although it’s only a good idea to do this if you can actually forgo the original death benefit amount.

If your family is still going to need that $100,000 policy then it doesn’t make much sense to reduce it now just to save a bit on premiums.

However, if finances have changed in your life since the original policy was purchased, perhaps it makes sense to reduce the death benefit and save some cash up-front.

If you are still healthy enough to qualify for a low-cost replacement term life insurance policy then go that route.

You can work with your insurance agent to find different or better term life insurance coverage than what you previously purchased.

Buying a new policy and receiving the new policy rate always saves in comparison to renewal premiums.

Once again, it’s worth mentioning that many individuals decide to convert their term life insurance policy into a permanent life insurance plan.

 

How is Permanent Life Insurance Different than Term Life Insurance?

Unlike a term life insurance policy that only lasts for a maximum of 30 years, a permanent life insurance policy provides protection for your entire life.

Your family will receive a death benefit no matter your age at the time of death. Many term life insureds smartly convert their term life insurance policies into permanent life coverage because of all the unique benefits.

For instance, permanent life insurance offers a tax-deferred savings element. Plus, permanent life insurance premiums stay the same throughout the years while a term may go up significantly every time it is renewed.

If your term life insurance policy is coming to an end, or you are looking for better coverage that will last your entire life, and also act as a savings vehicle, then permanent life insurance is right for you.

Permanent Life Insurance – Whole vs. Universal

 

lifetime term life insurance

 

There are four different types of permanent life insurance coverage: whole (ordinary) life, universal (adjustable) life, variable life, and variable universal life. The majority of consumers purchase either whole or universal life insurance coverage.

Whole or ordinary life insurance offers a death benefit and potential cash value. If you select a whole life insurance plan then you will have a set face amount (or death benefit) and set premiums. Over time, as you pay on your whole life insurance policy, the cash value will grow from dividends paid by the life insurer.

Universal or adjustable life provides more flexibility than whole life insurance. Universal life insurance allows insureds to increase the death benefit, secure savings at fixed interest rates and modify your future premium payments. To increase the face amount you will need to pass a medical examination.

Obviously, the life insurer wants to be sure that you were not recently diagnosed with a life-threatening illness and that is the reason for increasing the death benefit. The premium payments can be changed by you after you have accumulated enough cash value.

Keep in mind, you’ll need to have enough cash value to cover the costs. This is important to know because if you stop or reduce your premiums and the cash value becomes deplete, your life insurance policy could lapse.

 

    • Use the cash value to pay premiums as long as there is enough cash accumulated.
    • If unexpected expenses occur, you can stop or reduce your premiums.

    • As we mentioned earlier, you can borrow money from the insurance company using the cash value of your permanent life policy as collateral. 


Who is Term Life Insurance Best For?

 

For people who are looking for life insurance coverage for a specified period of time in their life, like while their children are still living at home, or for the remainder of their career, term life insurance is the right fit.

Term life insurance offers very affordable rates for healthy people who often times can’t be rivaled by that of other policies if bought at a young age.

While it does not build cash value, term life insurance serves its purpose well in protecting your family from financial loss in the event of your death.  Policies can start as low as $10/month and provide coverage upwards of $500,000.

How Much Does Term Life Insurance Cost?

While we can’t promise that these numbers will always be accurate for any given health classes, we have gathered some average rates you can expect for term life insurance.

Below is a chart displaying the cost of a $500,000 term life insurance policy for  10, 15, 20, 25 and 30-year terms. Males and females in this example are healthy, non-smokers, who are both 32 years old.

Below is a chart displaying the cost of a $500,000 term life insurance policy for 10, 15, 20, 25 and 30-year terms. Males and females in this example are healthy, non-smokers, who are both 42 years old.

As you can see, the older you are, the more life insurance rates go up.  For term policies especially, it is best to lock in low premiums early.

This gives you time to convert your policy into a whole life policy later in life if you so choose, or renew a policy if you are still young enough to obtain affordable life insurance coverage after it has expired.

The 6 Best Term Life Insurance Companies 

Here is a brief overview of our 6 Best Term Life Insurance Companies (Ratings as of :


1. Banner Life

banner life logo

 

Banner Life is known widely for their affordable coverage for people who are not in the best health conditions.

They also offer very competitive term life insurance rates that are almost always below most of the competition.

With terms ranging from 10-30 years, and renewable and convertible rider options, Banner Life is definitely one of the best term life insurance companies.

Banner Life Insurance Company Ratings

 

 

2. Protective Life

Protective Life Logo

Protective Life has been around for over 100 years in the United States.  Over this time, they have built quite the reputation as a life insurance and investment giant.

They offer some of the best term life insurance rates in the industry and also offer a wide array of whole life insurance offerings.

Protective Life Insurance Company Ratings


3. Pacific Life

Pacific Life logo

Pacific Life has been around for over 150 years. In 2018, they mostly specialize in universal and whole life insurance, having the #1 spot in total sales for indexed universal.

They are also #1 in the industry in overall life insurance sales.  There is a reason for this. Pacific Life has a wide array of options and has been successful since their inception at helping customers find the best whole and term life insurance rates.

Pacific Life Insurance Company Ratings


4. AIG

AIG logo

AIG has also been around for almost a century.  With a high financial rating, and a continuously successfully performing portfolio, AIG is another life insurance giant that offers a wide array of life insurance products.

Their term life policies in specific are very affordable and offer the ability to convert to whole life or renew the policy.

AIG Insurance Company Rating


5. Prudential

Prudential is probably best known as a life insurance company for its ability to consistently get people the lowest rates possible by classifying them in the best health class possible.

For this reason, they have very affordable rates compared to the competition, even with applicants who have substandard health.  They offer 6 different term life policies, each with their own benefits, riders, conversion terms, and coverage.

This wide array of coverage allows for Prudential to be one of the best term life insurance companies year after year.

Prudential Life Insurance Rating


6. Mutual of Omaha

Mutual of Omaha logo

Mutual of Omaha has also been around for over 100 years. During this time, they have built a solid financial rating to combine with their impressive portfolio.

Mutual of Omaha offers some of the best no-exam term life insurance policies in the industry, making it fall just short of Banner Life and Prudential on our list.

Mutual of Omaha Life Insurance Company Ratings


How to Find the Best Term Life Insurance

get quote

The best piece of advice anyone can offer you during the process of searching for the best term life insurance is to speak with an independent insurance agent.

The reason being, there are hundreds of options available on the market.  And while the internet can make searching for rates a bit easier, there are still a lot of details that need to be known about the insured’s needs, finances, and health in order to find them the best life insurance policy.

Speaking with an agent is entirely free, and can help you narrow down your choices from hundreds to a handful in a few minutes.

Please feel free to call the insurance professionals at LifeInsure.com at (866) 691-0100 during normal business hours or contact us through our website.

When it comes to planning for your family’s financial future, you want to understand everything you can about the choices available to you in order to make the right decision.

Speak with an agent today to get started!

Compare the Best Term Life Insurance Rates

find the best life insurance today

Use the form on the right (bottom on mobile) to get started.

 

 

Article source: https://www.lifeinsure.com/term-life-insurance-ultimate-guide/

6 Tips When Buying Life Insurance Coverage for Your College Child

The cost of college has been increasing rapidly over the last decade and shows no sign of slowing down. There is currently $1.4 trillion in outstanding student debt, demonstrating just how much the costs of higher education have increased, and how many college students have to resort to borrowing in order to pursue it.

At 93% the vast majority of private student loans have a co-signer, most often the student’s parents, meaning it’s not just the students who are liable for student loan repayments. While it’s an uncomfortable topic, this responsibility makes it advisable for the parents of a child with a student loan to take out life insurance against their child.

Private student loans are notoriously unstable, quite often a contract will contain a clause stating that the loan enters ‘automatic default’ after the death of one of the co-signers. This means that the entire sum of the loan becomes due after the death of either you or your child, a situation that would almost certainly cause financial hardship during an already incredibly difficult time. If your child has a student loan it is worth checking if life insurance is advisable and educating yourself on the best actions going forward. This article outlines some of the most important things to be aware of when taking out life insurance for your child and how to be sure you are getting the best policy for your situation.

Make sure life insurance is necessary

There are two main types of student loan, private and federal. Federal student loans, which are unlikely to require a co-signer, will not require life insurance as these are written off in the case of the borrower passing away. Even if your child has a private loan it is worth checking to see if there is a similar clause written into their loan agreement, as you may not be required to repay it in the case of their death.

“There is one exception to this- the federal parent PLUS loan, which will be void in the instance of either you or your child passing away but is however treated as taxable income. This could make you liable for a large tax payment so it may well be worth taking out insurance in the case too”, – explains Julie Moore, a College adviser at Stateofwriting and Ukwritings.

Ensure the insurance covers in case of ‘Automatic default’

As mentioned above, many private loans include an automatic default clause meaning in the event of the death of a co-signer the entire loan will need to be repaid immediately. If your child’s loan includes such a clause it is important to make sure any insurance you take out accounts for the possibility of an automatic default.

Go for term life insurance

There are two types of life insurance, whole and term. Term insurance only covers the individual for a set term before expiring whereas whole insurance does not expire but is significantly more expensive. “Luckily, term life insurance is the most appropriate here as it is only required to cover your child’s student loan for a set period. When taking out your policy do not allow yourself to be pressured or convinced to take out whole life insurance as this will be approximately four times the price and completely unnecessary”, – says Stewart Phillips, a Financial adviser at Boomessays.

Determine the amount of coverage needed

This can be done by looking at the loan’s rate and term, your policy should cover the entire repayment period and not just the time in which your child is in study. It should also cover any interest which the loan will incur and not solely the amount of money borrowed. It is worth calculating both the term of repayment and the amount of expected interest when deciding how much your policy should cover. Typically, private student loans range in term from 5-15 years and annual interest rates range from anything between 3% and 15%.

Insurable interest

When buying a life insurance policy for someone else you will need to demonstrate ‘insurable interest’, that is to say that you would suffer financially if the individual passed away. In the case of you being the co-signer of a private student loan you would qualify in this regard.

Preston Briseno, a Financial writer at Essayroo and AcademAdvisor comments:, “It’s important to note that in order to take out life insurance for your child they will have to be involved in the process and consent, which leads to the next point”.

Use the experience to educate your child

While uncomfortable, the process of buying life insurance is the necessary and responsible action to take and can be turned into a key teaching moment for your child as they take on more adult responsibilities. Use the experience to demonstrate the importance of financial contingency plans and discuss important financial skills such as budgeting and maintaining a good credit score.

This may not be a particularly enjoyable moment for you and your child but, by teaching them these vital skills at an early age you are setting them up for a more successful financial life.

Freddie Tubbs is a communication strategist at Academized. He helps companies create successful communications campaigns, and contributes articles to Paper Fellows and Bigassignments blogs.

 

 

Article source: https://www.lifeinsure.com/life-insurance-for-your-college-child/

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